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FIAT Chrysler Q1 2020 Earnings to be released today (May 5th) and Earnings call

Manley mentions FCA management team been through series of various crisis in the past, and will get through the otherside.
 
This first European Analyst question is so bad.
He ask Manley is any of the €2 billion saving have to do with E.U governmental programs.
Manley stated no, he mentions the product spending cuts togther with Selling & Overhead savings.
 
Now it is Time for Adam Jonas of Morgan Stanley!
 
Adam Jonas question is about a Cash For Clunkers & infrastructure.
He gives his blessings to FCA employess who died. (Manley thanks him for that).
 
Manley states U.S. Infrastructure bill would be more helpful than Cash For Clunkers. He mentions Pickup sales have pretty well vs 2008/2009 and infrastructure bill would increase more demand for pickups.
 
Europe on the other end needs such Cash for clunkers program deal to help with Emission standards, and the decline of sales volume in markets like Italy.
 
European analyst ask Manley if there's lagging recovery especally in North America what levers remain for FCA.
Manley stated is Product spending is the easiest lever, but he didn't won't to get into how deep the product lever can be because they are hopeful.
 
In another question about about the second half, Manley basiclly stated he expects U.S. Ecomomy to recover before Italy does espcially how much harder the virus have hurt Italy together with U.S. momentum prior to the shut downs.
 
Manley wished well for everybody familya, and mentions the virus have made himself personally rethink the way he works (I guess no more Sergio-style traveling).
 
So to recap:
€5 billion cash burn will be significantly higher in Q2 hence the Line-Of-Credit drawdown.
Hopeful for strong second half in the U.S.
Will delay projects.
Safey above all.
 
The next quarter is crucial and that after it and... 😞

A lot of companies will cease to exist during this crisis but I'm hopping that FCA will not be the one.

I've just read that Nissan may leave European market. 😒
 
@Jared B
@Bili
@redriderbob
@kisty
So what products have been significant delayed? Because Manley's goal is €1 billion euros less than 2019 on product but FCA has already spent €1 billion euro more than 2019 base on Q1 results. So the cut is more like €2 billion for the other 9 months of 2020.....that's more than GWAG/Wag/GC/GC 3 Row being delayed by 3-6 months.
 
@AlexB

Dunno. Motor1 Brazil said that some South American launches may be postponed by 6 months to a full year, 3 row "Compass" including.
 
Bili said:
@AlexB

Dunno. Motor1 Brazil said that some South American launches may be postponed by 6 months to a full year, 3 row "Compass" including.
Click to expand...
That's sounds like part of it, I should have added the E.U. product they have no choice but to do because of c02/environmental standards.
 
Bili said:
The next quarter is crucial and that after it and... 😞

A lot of companies will cease to exist during this crisis but I'm hopping that FCA will not be the one.

I've just read that Nissan may leave European market. 😒
Click to expand...
Q3 will be the make it, or deep poop quarter for FCA....Q2 will be ugly for FCA,Ford and even almighty Toyota.
 
AlexB said:
That's sounds like part of it, I should have added the E.U. product they have no choice but to do because of c02/environmental standards.
Click to expand...

Yes, P2 mild hybrids are coming next year as is GSE T4 DOHC engine. That's a new 1.5 liter GSE.

PHEV and 500 BEV launches are on track for this year.

But this EU thing has another story, Which technology will be used after the merger? FCA's or PSA's? FCA is in front on some fronts while on some like P4 PHEV they have a very similar timing.
 
AlexB said:
Q3 will be the make it, or deep poop quarter for FCA....Q2 will be ugly for FCA,Ford and even almighty Toyota.
Click to expand...

I presume that Europe will be firing on almost all cylinders in Q3 but unfortunately that's the quarter when Italian sales are seasonally low due to vacation season.

One important thing about Europe. During the last crisis FCA didn't spend money in Europe or even after it. That came back into their face. The car makers which had money or courage to invest during the crises had recovered much more quickly.
 
AlexB said:
@Jared B
@Bili
@redriderbob
@kisty
So what products have been significant delayed? Because Manley's goal is €1 billion euros less than 2019 on product but FCA has already spent €1 billion euro more than 2019 base on Q1 results. So the cut is more like €2 billion for the other 9 months of 2020.....that's more than GWAG/Wag/GC/GC 3 Row being delayed by 3-6 months.
Click to expand...

The last that I heard was that everything was pushed roughly a month. Obviously this news from the earnings call, is a lot more significant than that. As @Bili mentioned I could see some South American launches being pushed, it also wouldn't surprise me if maybe they pushed back the new Ram 2500-3500-4500-5500 back by a year or so.

I'll have to do some digging around.
 
Jared B said:
The last that I heard was that everything was pushed roughly a month. Obviously this news from the earnings call, is a lot more significant than that. As @Bili mentioned I could see some South American launches being pushed, it also wouldn't surprise me if maybe they pushed back the new Ram 2500-3500-4500-5500 back by a year or so.

I'll have to do some digging around.
Click to expand...

Maybe some powertrains too like the I-6 Project. RAM MCE (given GM delayed its own) ………..
 
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