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Posts Tagged ‘FCA profits’

Former Chrysler Turns $2.6 Bil Profit

But margins remain razor-thin.

by on May.08, 2015

The numbers may not be as good as they first appear, leaving much work ahead for FCA CEO Sergio Marchionne and his team.

In a major turnaround, FCA US – the former Chrysler – turned a $2.6 billion profit for the first three months of this year, compared with a $690 million loss during the first quarter of 2014.

But the American side of trans-Atlantic automaker Fiat Chrysler may not have much reason to celebrate, the vast bulk of its earnings coming from tax benefits as it changed its tax status when Chrysler became a wholly owned subsidiary.

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There were, nonetheless, some positive signs for the company which saw vehicle shipments jump 8%, to 718,000 cars, trucks and crossovers. That was largely due to strong demand for the new Jeep Cherokee and Renegade models, as well as the redesigned Chrysler 200. (more…)

FCA Turns Q1 Profit, Grows Revenue

Maker improves margins in North America, Europe.

by on Apr.29, 2015

FCA reported a $101.2 million Q1 profit today. Additionally, the maker improved its margins in North America and Europe.

Despite a currency shift that hurt the company bottom line, Fiat Chrysler Automobiles earned a profit of $101.2 million (92 million euros) during the first quarter as revenue grew by 19% and margins improved in both North America and Europe.

FCA earned a profit for the second straight quarter in Europe where it has struggled for several years and made more money in North America, but said its losses in South America deepened.

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The company’s profit for the first quarter of this year was an improvement over the $190 million loss that the automaker recorded last year after it recorded a $672-million charge to cover the cost of purchasing shares of Chrysler previously held by the UAW Retiree Medical Benefits Trust. (more…)

Automakers Getting Ready to Pass out Profit-Sharing

GM employees bust bank with this year’s payout.

by on Mar.02, 2015

GM CEO Mary Barra said hourly employees weren't to blame for the $3 billion in costs related to faulty ignition switches so they'll get record-setting profit-sharing checks this year.

General Motors, FCA US and Ford Motor Co. will begin distributing profit-sharing checks soon, setting the stage for what is certain to become an intense debate over compensation for the companies unionized hourly workers.

Based on General Motors’ North America 2014 financial performance, the company will pay, on average, up to $9,000 to approximately 48,400 eligible GM U.S. hourly employees. The compensation was larger than allowed under the contract because GM elected to pay profits based on the company’s earnings before the $3 billion deduction to cover the cost of recalls. The recalls were the fault of GM’s management not GM’s workers, GM Chief Executive Officer Mary Barra said.

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“UAW members at General Motors are proud of what they do and see profit-sharing as another validation of their hard work producing quality vehicles. Profit sharing does more than put a few dollars into a member’s pocket. It means more to spend in the community and each little bit makes a big difference for everyone,” said UAW vice president Cindy Estrada, who is in charge of the union’s GM Department. (more…)