By on July 31, 2020

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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7 Comments on “Fiat Chrysler Posts Slightly Smaller Loss; North America Profitable...”

  • avatar

    Just imagine how much more profitable NA might have been if they hadn’t starved the Chrysler and Dodge brands for new product.

    • 0 avatar

      Yeah, we all know putting on a dodge or Chrysler label rather than Jeep would command oodles of profits…..

      • 0 avatar

        In a dozen years, Dodge sold over 2 million Neons. From 1995 to 2006 BSSC (Before Sergio Stole Chrysler) they sold 800,000 Sebrings. There were nine Chrysler models BSSC, and were down to four after the takeover. They even sold a half-million dodge Calibers, 2/3 of them before BSSC.

        The disappearance of Dodge and Chrysler models wasn’t because they couldn’t sell any, but because Sergio kept dropping models with no replacements. He did that with Fiat models in Europe and Brazil too, selling non-updated models until sales petered out, and dropping it without a segment replacement.

        Sergio’s main goal was to pare down Fiat, and then Chrysler Corp., until it was small enough to merge with or get taken over by a larger car company, allowing his bosses, the Agnelli family, to exit the car business. The Agnelli family business is now an investment holding company, Exor, that can make more money in stock and finance than the capital intensive, low margin car business.

        • 0 avatar
          Arthur Dailey

          An interesting interpretation and one I find credible.

          Much of the population are too young to remember that the Chrysler name had considerable prestige. A major reason why the original Cordoba sold so well.

          Lido devalued that by rebadging K-Cars as Chryslers.

          As you noted under Marchionne Chrysler and Dodge were starved of new automobile content. The only vehicles still sold in North America under the Chrysler name are largely remnants of their time under Dr. Z.

  • avatar

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

  • avatar

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

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