The Limited Times

Now you can see non-English news...

Strong US business: car company Fiat Chrysler makes billions in profits

2020-10-28T17:36:39.263Z


Fiat Chrysler has made the leap into the black - although the two important sales markets, the USA and Italy, are being shaken by the corona crisis.


Icon: enlarge

Photo: Brendan McDermid / REUTERS

The US-Italian automaker Fiat Chrysler (FCA) made a billion profit in the third quarter.

The bottom line was the net profit was 1.2 billion euros, as the company announced on Wednesday in London.

A year earlier, high depreciation in the troubled European division had led to a loss of 179 million euros.

Because the group sold more expensive cars through cheaper sales channels, especially in the important US business, Fiat Chrysler was able to post an increase of 16 percent to 2.3 billion euros in adjusted earnings before interest and taxes, despite lower deliveries.

Meanwhile, sales fell by 6 percent to 25.8 billion euros.

Planned merger with Opel parent company

The North America division accounts for more than 70 percent of sales at FCA, and in the remaining divisions the group also continued operating in the red.

Worldwide Fiat Chrysler delivered 1.03 million vehicles in the third quarter, three percent fewer than a year ago.

Half of the deliveries are in North America.

Fiat Chrysler, like other automakers, generated a strong inflow of funds in the third quarter.

In the first half of the year, the warehouses were still full despite production stops in the corona lockdown, and FCA was now able to significantly reduce these stocks.

Fiat Chryler posted provisions for US litigation primarily related to the diesel affair of € 222 million in the quarter.

FCA wants to merge with the French Opel parent company PSA to form the world's fourth largest manufacturer.

The merger should be completed by the end of March.

The new group with large pillars in Europe and North America will be called Stellantis.


Icon: The mirror

beb / Reuters

Source: spiegel

All business articles on 2020-10-28

You may like

News/Politics 2024-02-18T07:51:47.434Z

Trends 24h

Latest

© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.