Fiat Chrysler loses 1 billion euros in Q2 2020

Italian-American car manufacturer Fiat Chrysler (FCA) on Friday, July 31, posted 2nd quarter losses of 1.04 billion euros ($1.23 billion) due to lockdowns imposed to slow the coronavirus pandemic.

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

“Our 2nd quarter showed that decisive actions and extraordinary contributions from our workforce enabled FCA to contain the impact of the COVID-19 crisis,” said chief executive officer 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 56% to 11.7 billion euros, less than the 14 billion euros that analysts predicted.

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

FCA is due 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.

“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 1st quarter 2021,” FCA said.

The company said that antitrust authorities in 12 out 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 3rd largest car manufacturer by turnover, to be called Stellantis. – Rappler.com