Jeep, Ram Trucks Sales Fuel FCA’s Third Quarter Recovery
Earlier this year all automakers across the globe had cause for concern, especially when it came to their quarterly and yearly profits, as the coronavirus pandemic showed up on the scene. Factories experienced shutdowns for months, auto shows ceased to be, and above all sales took a hit as well. Fortunately, the current numbers indicate that recovery is finally here, especially for Fiat Chrysler Automobiles (FCA).
FCA just announced it actually made an impressive net profit of $1.4 billion during the third quarter of 2020. What makes that figure more impressive is the fact that it also boasts an increase of 773 percent when compared to the same quarter of 2019. The North American market continues to pay its dividends to FCA. Specifically, FCA detailed that it was the “continued strong consumer demand for Ram and Jeep vehicles, coupled with a disciplined approach on incentives and operational costs” that really made the stark difference between last year’s third quarter and this year’s.
Another contributing factor? The Ram 1500, Jeep Wrangler, and Jeep Gladiator are more popular than ever, helping FCA significantly trim its advertising costs. In North America alone, before taxes and interest, the automaker posted adjusted earnings of $2.96 billion. For the company as whole net revenue took a 6 percent tumble, but when compared to last year (2019) the company still managed to post a 16 percent improvement globally. While worldwide shipments were affected — a reduction of 3 percent to be exact — the North American can market is the one credited with saving the day.
“Our record results were driven by our team’s tremendous performance in North America. During the quarter, we unveiled ‘white-space’ products across many brands; launched the next chapter for our storied Maserati brand; confirmed our market leadership in Latin America; and continued the rapid pace of our global investments in electrification. Once again, our team has proven its extraordinary resilience and creativity, and, as we close in on the merger to create Stellantis, we are stronger and more focused than ever on our mission to deliver great value for all our stakeholders,” said FCA CEO Mike Manley.
Despite all the chaos that continues to be sown by the pandemic, FCA is persevering. The automaker is on track to finalize its alliance with PSA Groupe in a 50-50 merger deal that’s slated to be finalized on February 2, 2021.
Visit us at Cape Coral Chrysler Dodge Jeep Ram and check out the latest FCA lineup. Explore the iconic Jeep Wrangler, the all-new Jeep Gladiator, the revamped Ram 1500 and many other models here at Cape Coral Chrysler Dodge Jeep Ram. Schedule your test drive today and ask about the latest offers and specials as our experts are sure to guide you in the right direction. Follow Cape Coral Chrysler Dodge Jeep Ram on social media to stay up to date with the latest automotive news and offers.