FCA’s adjusted net profit of was €981 million in the second quarter, down- 9% (flat at constant exchange rates), while net profit stood at €754 million, a -35% decline (down -26% at constant). FCA’s adjusted earnings before interest and tax (EBIT) for the second quarter dropped -11% to €1.7 billion.

The drop in Chinese demand (-34%) ahead of a July cut in import duties impacted the results allegedly forcing the Company to offer higher incentives, particularly for the Maserati brand. Combined shipments in the Asia Pacific region was down primarily due to lower shipments from the China JV as a result of market decreases, particularly in the SUV segments, and increased competition from domestic brands in China, according to FCA.

In the U.S., FCA’s market share reached 13%, up 60 bps year-over-year. The increase in shipments (+17%) was mainly attributed to the all-new Jeep Wrangler, new Jeep Cherokee and Jeep Compass, as well as the Dodge Journey, partially offset by decreased in volumes of Ram heavy-duty due to planned shutdown for retooling for the next generation mode. In LATAM, FCA was a market-leader in Brazil, with share up 80 bps to 18.4%, Argentina up 110 bps to 13.7%. Deliveries in the region increased +14% in the period.

The automaker registered a net industrial cash of €0.5 billion for the first time in the quarter, representing an improvement of €1.8 billion. FCA says it confirms its guidance for adjusted net profit in 2018. The remaining financial targets presented in the 2018-22 Business Plan remain unchanged, including doubling operating profit and a €9 billion investment in hybrid and electric cars.

On the same day FCA announced its results, CEO Sergio Marchionne, the man who returned Fiat and Chrysler back to profit, died at the age of 66 of ‘unexpected complications’ following a surgery.