FCA North America(FCA U.S. LLC) is back at full pay Fiat Chrysler salaried workers back at full pay
Mopar Insiders Forum
Register a free account today to become a member! Once signed in, you'll be able to participate on this site by adding your own topics and posts, as well as connect with other members through your own private inbox!
FCA Earnings for Q2 2020:North America makes a small profit despite shut down-overall Burns through €4.9 billion.
- Thread starter AlexB
- Start date
Deckard Cain
Well-known member
- Joined
- Oct 8, 2018
- Messages
- 702
- Reaction score
- 539
Thanks a lot for the awesome write-up AlexB!
Did he mention any timeline about new product for Europe?
Did he mention any timeline about new product for Europe?
Well, Thank You.
500 EV and Ducato EV
He did mention more about info page 17 and 18 than 500 EV: https://www.fcagroup.com/en-US/inve..._2020_Second_Quarter_Results_Presentation.pdf
- Joined
- May 4, 2018
- Messages
- 1,793
- Reaction score
- 1,476
I'm sure he didn't asked about this year. He was asking for 2021 and 2022. Both facelifts and new models.
In that case nope.
The U.S. and the Dividend with the merger was most the Q&A.
But FCA has them as Q3 2020( 500 BEV ) and Q4 2020 (Ducato BEV).
- Joined
- May 4, 2018
- Messages
- 1,793
- Reaction score
- 1,476
These silly bias from Detroit news folks are not too bright to think GM losing -$101 Million in North America and burning $7.8 billion is a better performance than FCA.
For some reason FCA is in every bad relations with media outlets. It's not different in Europe.
Today I've read article by Il Sole 24 Ore. Article which IMO was written in ill faith. Basically it was full of praise for VAG's technological advancement and FCA is even far behind PSA in platform technology and their development which is something far from truth.
I wrote something about platforms in this topic:
PSA EMP2 v4 (cVMP) platform
I think he is interested in Compass MCA with new P2 MHEV powertrains, Tipo MCA, Alfa Tonale and upcoming B segment SUV triplets. Of course add new Maserati models into mix.
Deckard Cain
Well-known member
- Joined
- Oct 8, 2018
- Messages
- 702
- Reaction score
- 539
Thanks AlexB!
And yes, those were the updates I wanted to know about Bili.
And yes, those were the updates I wanted to know about Bili.
- Joined
- May 4, 2018
- Messages
- 1,793
- Reaction score
- 1,476
Mike Manley:
Now our teams have worked tirelessly to create an environment that can keep everyone safe and our employees have done their part by following the new protocols and our suppliers have worked hard to support our plans. We've also fully resumed our product development activities in each region, as we continue to invest in programs, as part of our plans to enhance our product portfolio. And as a result our full year 2020 CapEx spending is expected to be between €8 billion and €8.5 billion.
Now some of you may remember that as we came into this year, we had a CapEx expectation of around €9.5 billion. So we will have reduced that by around €1.5 billion, but not jeopardize the launch of important white space products in North America or our electrified product in EMEA. And talking of EMEA, we'll be launching five new high-voltage EVs, four of which are made in Europe and I'm going to give you further details on these launches later.
Now for the Jeep brand, we'll start production of some new high-volume, high-margin products next year, a new three-row full-size SUV in Q1, the all-new Wagoneer and Grand Wagoneer in Q2. And, as you know, all three of these vehicles will go into high-margin segments that we do not play in today. And then, of course, the next-generation Grand Cherokee around Q3.
While the disruption in demand and local restrictions in all regions impacted our sales, our commercial teams were able to deliver several bright spots during the quarter. For the first time ever, we achieved market leadership in LATAM, with 15.9% market share, up 190 basis points year-over-year and we also maintained our leadership position in Brazil with 19.8% market share, up 100 basis points. And in the U.S., our retailer retail market share was up 10 basis points to 12.5%, primarily driven by the Jeep brand, especially with Wrangler and Grand Cherokee and, of course, our Ram heavy duty pickup.
Now, given the unprecedented nature of the pandemic, we took quick actions to safeguard our earnings power, preserve cash and strengthen our financial flexibility, which included a new €3.5 billion bridge credit facility which was syndicated in April and remained undrawn at the end of June.
And then, this facility was replaced in July with the issuance of a new €3.5 billion term notes, and a new innovative €6.3 billion credit facility that we signed in June with Intesa Sanpaolo, which is fully dedicated to our operations in Italy and to support the restart and transformation for more than 10,000 small and medium enterprises that are a critical part of Italy's automotive sector.
Our industrial free cash outflows were €4.9 billion in the quarter, which was better than our previous expectations. And as a result of the significant liquidity actions we completed during the quarter, our available liquidity remained strong at €17.5 billion which by the way excludes €4.5 billion that remains undrawn under the new €6.3 billion Italian facility.
Warren Truck will be down for 14 weeks from late June, until early October for retooling to facilitate the production of the all-new Wagoneer and Grand Wagoneer. And Toluca was down for the month of July to get ready for the Jeep Compass mid-cycle refresh.
However, we have several key new product actions that will provide momentum in the second half. Starting with the all new Fiat Strada, Brazil's best-selling pickup truck now for almost two decades, where production essentially began in May as part of our plant restart and I'm happy to report that demand for the new truck has been very strong.
And we also have several other key vehicle launches occurring throughout the remainder of the year. We'll begin production of the all-new Ram TRX pickup truck at our Sterling Heights plant beginning in Q4. And lastly, Maserati will benefit from several new models, which all go into production this quarter.
Mid-cycle freshenings of the Ghibli Quattroporte and Levante, along with the new Ghibli Mild Hybrid the first Maserati model to adopt hybrid electric propulsion combining high-performance low emissions and Maserati fun to drive. And the new Ghibli Trofeo, which is the first offering with a V8 engine. We expect the launch of these vehicles and numerous other actions, the new leadership team has and continues to take to have a solid impact on their financial performance in the fourth quarter.
Now we're looking forward to the much anticipated Maserati day that will take place in September. The event will set out the future of the brand introducing exciting new products innovation plans and customization programs and we'll start with a supercharger reveal of the new MC20 super sports car and the new 100% Maserati powertrain.
Now our teams have worked tirelessly to create an environment that can keep everyone safe and our employees have done their part by following the new protocols and our suppliers have worked hard to support our plans. We've also fully resumed our product development activities in each region, as we continue to invest in programs, as part of our plans to enhance our product portfolio. And as a result our full year 2020 CapEx spending is expected to be between €8 billion and €8.5 billion.
Now some of you may remember that as we came into this year, we had a CapEx expectation of around €9.5 billion. So we will have reduced that by around €1.5 billion, but not jeopardize the launch of important white space products in North America or our electrified product in EMEA. And talking of EMEA, we'll be launching five new high-voltage EVs, four of which are made in Europe and I'm going to give you further details on these launches later.
Now for the Jeep brand, we'll start production of some new high-volume, high-margin products next year, a new three-row full-size SUV in Q1, the all-new Wagoneer and Grand Wagoneer in Q2. And, as you know, all three of these vehicles will go into high-margin segments that we do not play in today. And then, of course, the next-generation Grand Cherokee around Q3.
While the disruption in demand and local restrictions in all regions impacted our sales, our commercial teams were able to deliver several bright spots during the quarter. For the first time ever, we achieved market leadership in LATAM, with 15.9% market share, up 190 basis points year-over-year and we also maintained our leadership position in Brazil with 19.8% market share, up 100 basis points. And in the U.S., our retailer retail market share was up 10 basis points to 12.5%, primarily driven by the Jeep brand, especially with Wrangler and Grand Cherokee and, of course, our Ram heavy duty pickup.
Now, given the unprecedented nature of the pandemic, we took quick actions to safeguard our earnings power, preserve cash and strengthen our financial flexibility, which included a new €3.5 billion bridge credit facility which was syndicated in April and remained undrawn at the end of June.
And then, this facility was replaced in July with the issuance of a new €3.5 billion term notes, and a new innovative €6.3 billion credit facility that we signed in June with Intesa Sanpaolo, which is fully dedicated to our operations in Italy and to support the restart and transformation for more than 10,000 small and medium enterprises that are a critical part of Italy's automotive sector.
Our industrial free cash outflows were €4.9 billion in the quarter, which was better than our previous expectations. And as a result of the significant liquidity actions we completed during the quarter, our available liquidity remained strong at €17.5 billion which by the way excludes €4.5 billion that remains undrawn under the new €6.3 billion Italian facility.
Warren Truck will be down for 14 weeks from late June, until early October for retooling to facilitate the production of the all-new Wagoneer and Grand Wagoneer. And Toluca was down for the month of July to get ready for the Jeep Compass mid-cycle refresh.
However, we have several key new product actions that will provide momentum in the second half. Starting with the all new Fiat Strada, Brazil's best-selling pickup truck now for almost two decades, where production essentially began in May as part of our plant restart and I'm happy to report that demand for the new truck has been very strong.
And we also have several other key vehicle launches occurring throughout the remainder of the year. We'll begin production of the all-new Ram TRX pickup truck at our Sterling Heights plant beginning in Q4. And lastly, Maserati will benefit from several new models, which all go into production this quarter.
Mid-cycle freshenings of the Ghibli Quattroporte and Levante, along with the new Ghibli Mild Hybrid the first Maserati model to adopt hybrid electric propulsion combining high-performance low emissions and Maserati fun to drive. And the new Ghibli Trofeo, which is the first offering with a V8 engine. We expect the launch of these vehicles and numerous other actions, the new leadership team has and continues to take to have a solid impact on their financial performance in the fourth quarter.
Now we're looking forward to the much anticipated Maserati day that will take place in September. The event will set out the future of the brand introducing exciting new products innovation plans and customization programs and we'll start with a supercharger reveal of the new MC20 super sports car and the new 100% Maserati powertrain.
- Joined
- May 4, 2018
- Messages
- 1,793
- Reaction score
- 1,476
John Murphy
Good afternoon guys. I just had two quick follow-up questions. First, just on the regulatory credit question. I mean, Mike, you said that you would be regulatory compliance and I apologize you seem to miss the timeframe in your commentary. When do you think that would be -- does that mean both in North America and Europe? And is that under the umbrella of Stellantis or before you get there? I'm just trying to understand timing when these regulatory credit purchases hopefully go to zero?
Mike Manley
John, different timeline depending on the -- depending on the region and these were as standalone FCA. So obviously when the merger closes, this will change and probably be accelerated. But the anticipation was that as we get into 2023 in the U.S. We will basically be zero reliance on credit. Our electrified fleet will carry all of the burden of compliance.
And then in Europe, because of the focus that we have put in terms of electrification, by the time we get to the end of 2021 as we enter 2022, we expect the fleet to be able to keep us fully compliant in EMEA as well. And that is with what I think is a very reasonable forecast to take rates of both our plug-in hybrids and our battery electric offerings.
Good afternoon guys. I just had two quick follow-up questions. First, just on the regulatory credit question. I mean, Mike, you said that you would be regulatory compliance and I apologize you seem to miss the timeframe in your commentary. When do you think that would be -- does that mean both in North America and Europe? And is that under the umbrella of Stellantis or before you get there? I'm just trying to understand timing when these regulatory credit purchases hopefully go to zero?
Mike Manley
John, different timeline depending on the -- depending on the region and these were as standalone FCA. So obviously when the merger closes, this will change and probably be accelerated. But the anticipation was that as we get into 2023 in the U.S. We will basically be zero reliance on credit. Our electrified fleet will carry all of the burden of compliance.
And then in Europe, because of the focus that we have put in terms of electrification, by the time we get to the end of 2021 as we enter 2022, we expect the fleet to be able to keep us fully compliant in EMEA as well. And that is with what I think is a very reasonable forecast to take rates of both our plug-in hybrids and our battery electric offerings.