There was a time when the world's automakers were seriously concerned about quarterly and, ultimately, yearly profits due to the coronavirus pandemic. Factories were shut down, auto shows were canceled, and, above all, sales were down. Fortunately, the recovery is clearly on the way, especially for Fiat Chrysler Automobiles. Detroit's third-largest automaker has just announced it made a net profit of $1.4 billion in the recently concluded third quarter. All the more impressive is that this is an increase of 773 percent over the same quarter in 2019. Thank the North American market.
More specifically, FCA claims there was "continued strong consumer demand for Ram and Jeep vehicles, coupled with a disciplined approach on incentives and operational costs."
The Jeep Wrangler, Gladiator, and Ram 1500 are more popular than ever. Another contributing factor was decreased advertising costs. In North America alone, FCA says it had adjusted earnings of $2.96 billion before interest and taxes. Net revenues, however, were down by 6 percent to $30.1 billion for the company as a whole, but earnings before interest and taxes came to $2.7 billion overall, a 16 percent improvement over the same time last year. Worldwide shipments, it should be noted, were slightly down, by 3 percent, but it was North America that saved the day.
"Our record results were driven by our team's tremendous performance in North America. During the quarter, we unveiled 'white-space' products across many brands; launched the next chapter for our storied Maserati brand; confirmed our market leadership in Latin America; and continued the rapid pace of our global investments in electrification. Once again, our team has proven its extraordinary resilience and creativity, and, as we close in on the merger to create Stellantis, we are stronger and more focused than ever on our mission to deliver great value for all our stakeholders," said FCA CEO Mike Manley.
Despite all of the turmoil caused by the pandemic, not only is FCA persevering, but it's also about to finally conclude its 50-50 merger deal with the PSA Group. That agreement remains on track to be signed by February 2, 2021.