Fiat's Italian Truck, Sales Increase in June - Atsa Nicea

July 8, 2002 TURIN, Italy, Bloomberg News reported that Fiat SpA's Italian truck and van sales rose 19 percent in June after the government offered tax breaks to companies to boost investment, two industry associations said.

Sales of Fiat Auto SpA vans rose 41 percent to 10,677 units from the same month a year earlier, Unrae and Anfia said in e-mailed statements. Sales at Iveco SpA, Fiat's truckmaking division, grew 11 percent to 2,271. Combined, sales of Fiat Auto vans and Iveco trucks grew 34 percent in June.

"Tax breaks to boost investments certainly led to the increase," Unrae said in a statement.

Italian companies are buying more vehicles and machinery after the government in October introduced a tax deduction for those that reinvest profit back into their businesses. The increase in Fiat's truck sales contrasts with a decline for cars. The company fell to No. 11 in worldwide car sales in 2001 from No. 7 the year before.

Fiat new car sales slid 31 percent in June, pushing its domestic market share to 28.6 percent, its lowest ever, as drivers bought models by rivals such as Peugeot Citroen SA, the Transport Ministry said Wednesday.

Fiat's truck and van sales in Italy rose 15 percent in the first six months of the year, outpacing a 9.6 percent gain in all Italian commercial vehicle sales in the period, the industry groups said. Sales at Italian carmakers rose 15 percent in the first half, while those of foreign carmakers advanced 4.2 percent, Unrae also said.

Fiat stock has dropped 27 percent this year, the worst performer on a nine-member Bloomberg Europe Autos Index.