Fiat Chrysler Posts Slightly Smaller Loss; North America Profitable

Steph Willems
by Steph Willems
fiat chrysler posts slightly smaller loss north america profitable

Fiat Chrysler Automobiles revealed a second-quarter loss of $1.24 billion on Friday, down slightly from the $1.8 billion net loss posted for Q1.

As before, the pandemic weighed heavily on the automaker’s finances, though this spring’s two-month shutdown of domestic manufacturing and the revenue drop arising from the virus didn’t spell red ink for its all-important North American region.

Overall, net revenues tumbled 56 percent, year over year, in the second quarter. Adjusted earnings before interest and taxes stood at negative $1.1 billion, which is half of the $2.2 billion loss predicted by a smattering of analysts polled by Reuters. The automaker’s recovery began in earnest in June. FCA said.

“Our second quarter showed that decisive actions and extraordinary contributions from our workforce enabled FCA to contain the impact of the COVID-19 crisis,” said CEO Mike Manley in a statement. “While the company remains vigilant about the health and safety of employees, our plants are up and running, dealers are selling in showrooms and online, and we have the flexibility and financial strength to push ahead with our plans.”

In the automaker’s North American bread basket, second-quarter adjusted pre-tax earnings were in the positive, at $46 million. Net revenue fell 53 percent due to lower sales volumes, though actual shipments were off 62 percent.

FCA said the ongoing pandemic makes it even more eager to leap into bed with France’s Groupe PSA.

“The COVID-19 crisis has further underlined the compelling logic of the Groupe PSA and FCA merger. Work by both teams towards the completion of the merger has continued apace and we expect to meet the objective of combining as a single company by the end of the first quarter of 2021,” the automaker stated.

“Antitrust approvals have already been granted by twelve of twenty-two jurisdictions. The review initiated by the European Commission is not expected to delay the merger timetable.”

You’ll recall that July delivered news of a new name for the combined companies: Stellantis.

[Image: Fiat Chrysler Automobiles]

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  • ToolGuy ToolGuy on Jul 31, 2020

    My next truck might be a Ram. (Can't believe I'm typing this.)

  • Lorenzo Lorenzo on Aug 01, 2020

    If the North American market is profitable, you can imagine the margins on Jeeps and Rams (formerly Dodge).

  • CoastieLenn They absolutely should.
  • Arthur Dailey Thanks for the clarification.@JeffS has nicely summarized most of my original comment.I greatly dislike the 'touring' light treatment. It seems like we all do. This generation of Mark is too short to pull off the continental hump and fake engine vents. With them the proportions look odd.As Corey so nicely put it 'disco was dead and so was its car'. Successive generations generally reject the vehicles that their parents drove (or drove them around in). And as the children of Boomers grew, the Boomers gave up their PLC's and rather than turning to station wagons to transport their growing brood turned to the newly available minivan.And the generation behind them, rather than aspiring to a PLC, instead leased 'German driving machines'.
  • SCE to AUX "Toyota has dropped a pic of the next Tacoma on Instagram."This is why the splashy auto show reveals are dead.
  • Sckid213 I feel like the Camry in Japan is what oddballs like the Kia K9 and Hyundai Eqqus felt here. Obviously those were higher-end vehicles than Camry, but they felt like they were in the wrong dimension here in the U.S.
  • FreedMike The Falcon was fast and temperamental. Is Ford sure this is what it wants to advertise?