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Italian-US carmaker Fiat Chrysler (FCA) made a billion in profits in the third quarter. The end result was net profit of € 1.2 billion, the company announced Wednesday in London. A year earlier, a sharp depreciation in the troubled European division had led to a loss of 179 million euros.
As the group was selling more expensive cars through cheaper sales channels, especially in the major U.S. business, Fiat Chrysler was able to record a 16 percent increase to € 2.3 billion in adjusted earnings before interest and taxes, despite lower deliveries. Meanwhile, sales fell 6% to 25.8 billion euros.
Merger planned with the parent company Opel
The North America division accounts for over 70% of FCA’s sales and in the remaining divisions the group continued to operate in the red. Worldwide, Fiat Chrysler delivered 1.03 million vehicles in the third quarter, three percent less than a year ago. Half of the deliveries are in North America.
Fiat Chrysler, like other automakers, generated a large inflow of funds in the third quarter. In the first half of the year, warehouses were still full despite production shutdowns in the crown block and FCA has now been able to significantly reduce these inventories. Fiat Chryler set aside provisions for US disputes mainly relating to the diesel matter for € 222 million in the quarter.
FCA wants to merge with PSA, the French parent company Opel, to form the world’s fourth largest manufacturer. The merger is expected to be completed by the end of March. The new group with major pillars in Europe and North America will be called Stellantis.
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