FCA reports net loss of €1.7 billion from continuing operations

Worldwide
Published:  06 May, 2020

The automotive Group said its first quarter results reflect the impacts from Covid-19, with net loss from continuing operations amounting to €1.7 billion.

Adjusted net loss from continuing operations for Fiat Chrysler Automobiles (FCA) amounted to €0.5 billion in the first quarter of 2020 but, despite the significant impact of Covid-19, the Group delivered a positive Adjusted EBIT, and available liquidity on March 31, 2020 totalled €18.6 billion, further strengthened with additional €3.5 billion facility signed in April. Group revenue in the first quarter declined 16% to about €20.6 billion, while global vehicle shipments dropped 21%. Before taxes and one-time adjustments and charges, FCA reported a profit of €52 million against €508 million euros in the same quarter of 2019.

FCA said that measures to combat the coronavirus spread included the temporary suspension of production at all its plants, implementing remote working where feasible and enhancing sanitation protocols for all facilities. In addition, the Group said it has delayed non-essential spending, significantly reduced marketing expenditures and salaries for all salaried employees were reduced or deferred. FCA said it has worked closely with all relevant stakeholders to develop and implement “robust plans” to effectively restart production and vehicle sales once governments in various jurisdictions permit such activities.

“Given the successful restart of operations in our joint venture in China along with the dealership network and the resumption of production in our LCV plant in Atessa, Italy, on April 27, which is operating at  about 70% of its normal run rate, we are confident about our prospects”, said the Group in a statement. Production in other regions is to be phased in over a period of time and aligned to consumer demand. Despite the “unexpected and unprecedented times” due to the Covid-19 pandemic, FCA said that, together with French carmaker Groupe PSA, it “remains committed” to the previously announced 50/50 merger.

FCA’s range of car brands include Abarth, Alfa Romeo, Chrysler, Dodge, Fiat, Jeep, Lancia, Ram and Maserati.