Troublede Fiat To Scale Back Global Presence

MILAN, Oct 4 Reuters reported that Italian car-maker Fiat, struggling against losses and falling sales, plans to scale back its international operations drastically, weekly news magazine Il Mondo reported on Friday.

The Turin-based car group, which made global expansion a priority in recent decades, plans to sell or close activities in Morocco, South Africa, Egypt, Thailand and Pakistan, Il Mondo reported, refering to a plan drawn up by Fiat management.

A company spokesman said he was unable to comment on the report.

The company would also keep output at minimal levels in Argentina and investments in Russia would be frozen for the time being, the magazine said.

Instead the group would seek to consolidate in China, India and Turkey as well as its number two market Brazil, it said.

Il Mondo said Fiat's international arm, accounting for 24 percent of group revenues, was seeking to make an operating profit of 100 million euros by 2005 from an expected loss of 50 million euros this year.