Fiat Auto has reported 2002 fourth quarter losses of 200m euros after previous forecasts suggested the struggling carmaker would break even.

According to Reuters, Fiat group net debt fell to below three billion euros by the end of the year from 5.8bn euros at the end of September, in line with a target set by its creditor banks.

Fiat Auto recorded an operating loss of 432m euros in the fourth quarter of 2001, the beginning of a long crisis.

Fiat in October forecast that Fiat Auto should make a full-year operating loss of about 1.2bn euros against a 549m euro loss in 2001.