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FCA’s U.S. Profits Plunge 89% on Recall Costs
Fiat Chrysler Automobiles NV’s net income in the U.S. plummeted to $70 million (€64 million) in the third quarter from $611 million a year earlier, dragged down by $848 million (€779 million) set aside to cover recalls.
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Fiat Chrysler Automobiles NV’s net income in the U.S. plummeted to $70 million (€64 million) in the third quarter from $611 million a year earlier, dragged down by $848 million (€779 million) set aside to cover recalls.
The high recall costs reflect a July settlement with the U.S. National Highway Traffic Safety Administration involving the company’s laggardly handling of 23 recent recalls covering 11 million vehicles.
FCA USA’s modified operating profit, which ignores those charges, climbed 34% to $1.3 billion (€1.2 billion).
Chrysler’s third-quarter revenue grew 5% to $21.8 billion (€20 billion), and global vehicle sales rose 4% to 737,000 units. The company notes results were driven by heavy demand in North America for trucks and Jeep SUVs.
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