Record U.S. sales of Ram trucks and the release of the new Jeep Gladiator helped fourth-quarter profits at Fiat Chrysler Automobiles increase by over a third, the U.S.-Italian automaker reported Thursday.
Fiat Chrysler, which is currently merging with French rival PSA Peugeot, reported net profit in the three months finished December 31 of 1.58 billion euros ($1.74 billion), increasing from 1.17 billion euros last year.
CEO Mike Manley referred 2019 as ’’a historic year″ for the company, mentioning its strengthened financial position, key product investments and the almost $50 billion merger agreement with PSA Peugeot, which will be finished by the end of 2020 or early 2021.
Its North America division reported record adjusted revenues before taxes, depreciation and amortization of over 2 billion euros. It represented 97% of adjusted EBIT generated world-wide.
Based on the outcomes, about 44,000 eligible workers represented by the United Auto Workers’ Union will get a profit-sharing bonus of $7,280. That brings to $36,000 the amount hourly workers have received in profit sharing during a decade.
The profits in American contrasted with losses in Asia and at luxury automaker Maserati along with declining profits in Europe and the Middle East. Outside of North America, only Latin America contributed to increase of quarterly profits, increasing 9% to 135 million euros.
During the whole year, Ram sales in the United States increased 18%, led by the Ram Heavy-Duty, Ram 1500 and Ram 1500 Classic, to 703,000 units.
Jeep volumes were low overall, despite a 8% boost in sales of Jeep Cherokee to 243,000 units. The division was looking to the new Jeep Gladiator, the brand’s return to trucks, for the growth in future. The Gladiator’s Super Bowl advertising showing Bill Murray reprising his role in ’’Groundhog Day,″ has won accolades.
Still, global deliveries in 2019 were down 9%, to 4.4 million units, which Fiat Chrysler stated was because of dealer stock reductions in North America and Maserati, which is up for a relaunch this year. Deliveries also were impacted by lower shipments by the joint venture in China together with discontinued models in Europe, namely the Punto and Alfa Romeo Mito.
The company verified 2020 guidance of adjusted revenues before taxes, depreciation and amortization above 7 billion euros, and industrial cash flow of over 2 billion euros.
Manley stated that the PSA Peugeot merger should help speed-up turnaround plans in Europe, where the automaker is moving to renew its aging showroom with releases this year of a new Fiat 500 along with plug-in hybrid versions of the Jeep Compass and Renegade.
