Fiat Chrysler reports $339 million loss in Q3 2015
October 30, 2015 by Canadian Plastics
Hampered by a huge recall campaign in North America, carmaker Fiat Chrysler Automobiles NV registered a net loss of 306 million euros (US$339 million) in the third quarter 2015.
The company, which is spinning off its sports car unit Ferrari, said the quarterly loss compared with a net profit of 174 million euros for the same period last year.
In July, the National Highway Traffic Safety Administration hit Chrysler with a record US$105 million penalty for violating laws in 23 recalls involving 11 million vehicles. The company admitted it had failed to fully comply with recall rules.
In a statement, Fiat Chrysler said its adjusted earnings before interest and taxes were up 35 per cent to 1.3 billion euros in the quarter, a figure that excluded the costs of the future recall campaign.
Worldwide shipments were flat at 1.1 million units, despite a 27 per cent increase in Jeep volumes. Net revenues rose 17 per cent to 27.5 billion euros on strong results in North America and continued recovery in Europe.
Ferrari revenues rose 9 per cent to 723 million euros on sales of the new 488 GTB and 458 Speciale A, which increased volumes.