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Jeep Shortages to Hurt Fiat Profit
Model changeovers in the U.S. for most of Jeep's SUV lineup will dent Chrysler Group LLC's revenue and profit in the current quarter thus hurting finances at parent Fiat SpA, according to Fiat-Chrysler CEO Sergio Marchionne.
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Model changeovers in the U.S. for most of Jeep's SUV lineup will dent Chrysler Group LLC's revenue and profit in the current quarter thus hurting finances at parent Fiat SpA, according to Fiat-Chrysler CEO Sergio Marchionne.
He offered no details about expected results at the two companies. But Marchionne tells reporters that the problem won't alter Fiat's full-year forecast.
The company predicts its trading profit (earnings before interest, taxes and one-time items) will jump 18% year over year to as much as €4.5 billion in 2013.
Fiat relies heavily on its U.S. alliance partner to offset losses from Europe's slumping car market. Without Chrysler's contribution, the Italian carmaker would have posted a €1 billion net loss in 2012.
Three of Chrysler's American assembly plants are retooling for the debuts of a new generation of Jeep Grand Cherokee and Cherokee midsize and Compass and Patriot compact SUVs this year. Jeep's U.S. sales fell 17% to 31,200 vehicles in February despite a 4% gain in the overall market.
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