Fiat Chrysler Lost 1 Billion Euros in Second Quarter

A Fiat logo is pictured on a car in Bayonne, southwestern France. (AP Photo/Bob Edme)

MILAN, Italy (AFP) — Italian-American car manufacturer Fiat Chrysler on Friday posted second quarter losses of $1.23 billion due to lockdowns imposed to slow the coronavirus pandemic.

The result is nevertheless better than expected, after analysts predicted losses of $2.3 billion, according to Factset Estimates.

“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.

“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,” he said.

Revenue at FCA, whose brands include Fiat, Chrysler, Jeep, Maserati, Alfa Romeo, Dodge and Ram, plunged by 56% to $13.8 billion, less than the $16 billion that analysts predicted.

From April to June, FCA shipped 424,000 vehicles worldwide, down 63% from the same period last year. 

FCA is to merge with France’s PSA and the company said on Friday that “the Covid-19 crisis has further underlined the compelling logic” of the merger. PSA’s brands include Peugeot, Citroën, Opel and Vauxhall.

“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 2021,” FCA said.

The company said that antitrust authorities in 12 of 22 jurisdictions had approved the merger.

“The review initiated by the European Commission is not expected to delay the merger timetable,” Fiat Chrysler said.

The merger will produce the world’s third-largest car manufacturer by turnover, to be called Stellantis.

© Agence France-Presse
Courthouse News contributed to this report.

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