Mexican Media Brands
Chrysler’s Cash Could Lower FCA Financing Costs by €1 Billion
Fiat Chrysler Automobiles NV should be able to lower its borrowing costs by about €1 billion ($1.1 billion) in 2018 by tapping into Chrysler’s $13 billion (€11.9 billion) cash reserves.
#economics
Share
Fiat Chrysler Automobiles NV should be able to lower its borrowing costs by about €1 billion ($1.1 billion) in 2018 by tapping into Chrysler’s $13 billion (€11.9 billion) cash reserves.
Analysts tell Bloomberg News the option is available now that FCA has retired bonds that restricted the transfer of funds beyond Chrysler’s own operations. One expert estimates the new access will save the company about €350 million this year. Another figures Chrysler’s cash will hike FCA’s net income by €630 million in 2018.
CEO Sergio Marchionne is expected to use some of Chrysler cash to help bankroll FCA’s €48 billion expansion plan, thereby reducing the need for outside finance. But most analysts remain skeptical that the company will be able to achieve its goal of tripling net income to €5 billion in 2018.
Yesterday FCA affirmed that target and other financial goals, including an operating margin between 6.4% and 7.2%. The company also raised its 2018 revenue forecast 3% to €136 billion, citing a richer mix of highly profitable trucks and SUVs.
RELATED CONTENT
-
Ford’s $42 Billion Cash Cow
F-Series pickups generate about 30% of the carmaker’s revenue. The tally is about twice as much as what McDonald’s pulls in.
-
Tariffs on Autos: “No One Wins”
While talk of tariffs may make the president sound tough and which gives the talking heads on cable something to talk about, the impact of the potential 25 percent tariffs on vehicles imported to the U.S. could have some fairly significant consequences.
-
On Global EV Sales, Lean and the Supply Chain & Dealing With Snow
The distribution of EVs and potential implications, why lean still matters even with supply chain issues, where there are the most industrial robots, a potential coming shortage that isn’t a microprocessor, mapping tech and obscured signs, and a look at the future