Despite increases in shipments, sales, marketshare and revenue, FCA US, the former Chrysler Group, saw its overall profits drop substantially in 2014 due to the completion of Fiat’s takeover of Chrysler.
FCA US reported full-year net income of $1.2 billion compared with net income of $2.8 billion in 2013. The maker’s fourth quarter net income was $669 million, down about two-thirds from $1.6 billion during the same period last year.
The company took a hit this year on $1.2 billion in “unfavorable infrequent items,” such as the costs associated with the Fiat takeover Chrysler. Conversely, last year’s results benefitted from $962 million related to the release of valuation allowances on deferred tax assets. (more…)