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FCA lost money in the third quarter

by David Zatz on

In what might be one of the company’s last financial reports, Fiat Chrysler Automobiles reported a net loss for the third quarter 2019, using International Financial Reporting Standards (IFRS)—or a net profit of €1.3 billion, using non-GAAP methods.

If one uses non-GAAP accounting, FCA actually had an adjusted net profit of €1.262 billion, down 6% from Q3 2018.

Worldwide shipments was down by 9%, though the company attributed that to North American dealers carrying lower inventories—a wise move, with an auto-sales drop predicted by most economists. That said, North America was also the source of record profits, with an adjusted earnings before interest and taxes (EBIT) of €2 billion and a 10.6% margin—up from 10.2%. Latin America profits were up quite a bit, reaching €152 million, with a 6.9% margin.

American profits were offset somewhat by continued losses in Asia-Pacific (down to €10 million) and Europe/Middle East/Asia (a hefty €55 million, partly due to dropping the Fiat Punto and Alfa Mito). Maserati lost €51 million as well—with sales nearly half of those in the third quarter of 2018. The total adjusted EBIT ended up at just about €2 billion, with Latin America roughly offsetting losses elsewhere and at Maserati.

Going forward, FCA will switch Maserati over to full battery-electric powertrains in every vehicle, along with gasoline power; Maserati will also have autonomous driving capabilities. The first car to get any electric power will be the new Ghibli, a hybrid to be launched in 2020. A new sports car is also due for 2020. No mention was made in the official documents of Dodge or Chrysler, but then, nothing was said of Fiat, Jeep, or Ram, either; Alfa Romeo was mentioned in terms of “rationalized product portfolio plans” (cutting planned vehicles).

FCA will be developing its own electric charging systems in cooperation with Italian grid operator Terna Group; the headquarters for that effort will be the Mirafiori complex.



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