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Fiat Chrysler write-offs push it into net loss

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AFP Milan
Italian-US automaker Fiat Chrysler, in talks to merge with French rival PSA, on Thursday posted a 179 million euro (USD 200 million) loss in its third quarter, due to write-offs in Europe related to restructuring.
In Europe, where net revenues fell 6 per cent in the three months to September 30, Fiat Chrysler (FCA) has been cutting under-performing brands and restructuring.
In North America, however, a key market whose brands include Jeep, Dodge and Ram, adjusted margins improved to 10.6 per cent, helped by better pricing, industrial efficiencies and better managed stock at dealerships.
"Changes to our product portfolio plans are central to our strategy to improve performance in EMEA (Europe, Middle East, Africa) and Maserati," Chief Executive Mike Manley said in a statement.
The company was on track to deliver its full-year outlook, Manley said. The company is targeting an adjusted profit of 6.7 billion euros, flat with 2018.
On an adjusted basis, FCA posted a profit of 1.9 million euros in the third quarter. Overall revenue fell 1 percent in the quarter to 27.3 billion euros.
On Wednesday, FCA confirmed that it was in talks to merge with PSA, the maker of Peugeot, Citroen and Opel, to create a company with combined sales of nearly 170 billion euros that would become the world's fourth-largest automaker.

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First Published: Oct 31 2019 | 7:10 PM IST

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