Fiat Chrysler Automobiles (FCA) has posted its results from the second quarter of 2020, showing the direct results of the COVID-19 (or Coronavirus). The company posted a smaller than expected loss for the quarter, thanks to the very small profit from the North American market.
The successful restart of the company’s manufacturing operations at the end of May, using cost control actions, the positive results from the North American marketplace with adjusted earnings before interest and tax (EBIT) of €39 million (or $46.2 million). North American profit was spearheaded by the success of the Jeep® and Ram Truck brands during the quarter with U.S. consumer demand exceeding expectations.
In the LATAM market, FCA led the industry in vehicle sales for the first time and finishing the quarter with a market-leading of 15.9%. Leading the way for FCA during the quarter was the Brazilian market where FCA took an industry-leading 19.8% market share with strong consumer demand for pickup trucks and SUVs. During the quarter, Fiat launched the all-new Fiat Strada pickup in June, which is projected to be a huge success for the LATAM market.
“Our second quarter showed that decisive actions and extraordinary contributions from our workforce enabled FCA to contain the impact of the COVID-19 crisis. While the company remains vigilant about the health and safety of employees, our plants are up and running, dealers are selling in showrooms and online, and we have the flexibility and financial strength to push ahead with our plans.” – Mike Manley, CEO
During the quarter, the EMEA region’s manufacturing operations also came back online. Despite losses during the quarter, FCA is shifting its focus to some of its highly-anticipated electrified vehicle introductions like Fiat’s all-new fully electric Fiat 500 which will debut in the third quarter. The new Jeep Renegade and Compass “4xe” plug-in hybrid (PHEV) models have also launched during the quarter as well.
The Maserati brand also had some exciting future news during the second quarter. The brand had released its first teaser of its first electrified model, the Ghibli Hybrid with select images in anticipation of the vehicle’s worldwide
debut a week ago. To further demonstrate its commitment to invest and elevate the iconic brand, Maserati confirmed that “Maserati Day” will be held Sept. 9th to 10th in Modena, Italy, where the brand will debut the new Maserati MC20 super sports car and other future products.
The COVID-19 pandemic has further underlined the logic behind the compelling logic of the Groupe PSA and FCA merger. Antitrust approvals have already been granted by twelve of twenty-two jurisdictions. The review initiated by the European Commission is not expected to delay the merger timetable. FCA and PSA also took another major step earlier this month with the announcement that the new entity formed by the combined companies will be known as Stellantis, the world’s fourth-largest carmaker once things are done.