Automotive News   |   Automotive News Europe   |   Autoweek   |   Automobilwoche

Automotive News China Newsletter
Register our free newsletter, sent each Monday and Thursday

     Automakers   Suppliers   Auto Show   Comment   Car Cutaway   Newsletters   Press Releases   Register for Newsletter
  Contact Us:   Editorial   Advertising   Subscription Information   |   About Us   Media Kit
Home >> Automaker Email this story   Print this story
 
Fiat Chrysler cuts financial targets as Q2 China sales flop
Bloomberg | 2018/7/27

Fiat Chrysler Automobiles cut its financial targets after disappointing sales in China took a toll on second-quarter results, marking a rocky beginning to the tenure of new CEO Mike Manley. 

The Italian-American automaker lowered its guidance for revenue and profit this year, and said higher competition and slumping SUV sales in China had hurt revenue.

The problems in China present a significant challenge for Manley, who was thrust into the spotlight on Saturday when he was named CEO to replace an ailing Sergio Marchionne, who died on Wednesday. FCAs five-year plan to double profit is dependent on a rapid expansion in the worlds largest automotive market, and sales in Asia regressed.

The automaker said net income for the quarter fell 35 percent to $881.9 million (5.97 billion yuan). Revenue gained 4 percent to $33.91 billion. Adjusted earnings fell 9 percent to $1.15 billion. 

The company said it now holds $533 million in net cash compared with net industrial debt of $1.53 billion on March 31. 

Asia operations fell to a 98 million euro (777 million yuan) loss as Jeeps expansion in China failed to gain traction. The slump extended to luxury brand Maserati, as customers waited for a duty reduction in July to take delivery of Levante SUVs.

Overall, the company now expects revenue of $134.5 billion to $138.9 billion, according to a statement Wednesday. Previously FCA had expected $146.2 billion.

Related Stories
  • FCA integrates production, sales at GAC venture
  •     --Published:2019/7/5
     
  • FCA replaces China sales chief amid slump
  •     --Published:2019/3/5
     
  • Europe's automakers scramble to protect profits in China
  •     --Published:2019/2/4
     
  • Multiple challenges in China await FCA's new CEO
  •     --Published:2018/27/7
     
  • Fiat Chrysler slump continues amid aging product lineup
  •     --Published:2018/24/7
     
  • FCA, GAC launch Jeep Commander output in Changsha
  •     --Published:2018/10/4
     
  • How Geely sought to acquire FCA
  •     --Published:2018/6/3
     
  • Geely held informal talks with Fiat Chrysler before Daimler stock deal
  •     --Published:2018/2/3
     
  • Fiat Chrysler, GAC exploring deeper China ties
  •     --Published:2017/24/11
     
  • Alfa Romeo, Maserati cut production after China slowdown
  •     --Published:2017/20/10
     
  • Why it makes sense for Great Wall to buy Jeep
  •     --Published:2017/25/8
     
  • Great Wall cites 'big uncertainties' in making deal with Fiat Chrysler
  •     --Published:2017/25/8
     
  • Great Wall covets Fiat Chrysler's Jeep brand
  •     --Published:2017/22/8
       
     
     

    Our Newsletter Editions
    Automotive News China produces two email newsletters each week. You can sort your news by the articles highlighted in each of our newsletters here.

    Select your newsletter     

     
     

    Automotive News China
    Room 1303, Building 2, Lane 99, South Hongcao Road,
    Shanghai 200233
    Telephone: 86-139-1851-5816
    Fax: 86-21-6495-0895
     
    Home | Help Center | About Us | Privacy Policy | RSS
    Entire contents © Crain Communications, Inc.
    Use of editorial content without permission is strictly prohibited. All Rights Reserved.
    ICP06057291