Fiat Chrysler CEO Sergio Marchionne states the company is over half way to finishing its goal of eliminating its substantial debt.
Marchionne set out plans to pursue getting rid of FCA’s debt in between 2014 and 2018. The car manufacturer owed a reported $7 billion at the end of the third quarter of 2017, however after a strong performance in 2017, it has reduced its debt to $4.8 billion. In a conference attending media revealing FCA’s 2016 sales results, Marchionne explained debt reduction strategy as being ’60 percent’ complete.
FCA delighted in a strong financial performance in 2016 with net profits of $1.8 billion on $6.5 billion earned, a huge gain from the $93 million it made in 2015. Its NAFTA region sales dropped slightly at 2.6 million units, but FCA adds this small reduction up to the phase-out of the Dodge Dart and Chrysler 200. Its U.S. market share stood flat at 12.6 percent.
FCA’s stock just recently jumped amidst rumors the automaker might spin off its Alfa Romeo or Maserati luxury brands to decrease its debt. Maserati, which has experienced an increase in sales following the introduction of its Levante crossover, could be worth as much as $4.8 billion. Marchionne has likewise pressed the concept of merging with another automaker to not just to level FCA’s launching however help in reducing development expenses.
