Skip to main content
The Globe and Mail
Support Quality Journalism.
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
Just$1.99
per week
for first 24 weeks

Enjoy unlimited digital access
Enjoy Unlimited Digital Access
Get full access to globeandmail.com
Just $1.99 per week for the first 24 weeks
Just $1.99 per week for the first 24 weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); } //

The Fiat Chrysler Automobiles world headquarters stands in Auburn Hills, Mich., on May 27, 2019.

The Associated Press

A small profit in North America helped Fiat Chrysler Automobiles (FCA) to limit losses from the COVID-19 crisis in its second quarter, and the automaker forecast a “much, much better second half” ahead of its planned 2021 merger with France’s PSA Group.

The Italian-American maker of Fiats, Alfa Romeos, Jeeps and Rams said on Friday it slashed advertising costs and saw net prices rise in its key North American market, where it focused on retail sales over lower-margin fleet business.

It also cut capital expenditure across the group, and expects to reduce the total for the full year by 1.5 billion euros ($1.8 billion) to 8-8.5 billion euros.

Story continues below advertisement

FCA posted an adjusted loss before interest and tax of 928 million euros for April-June, versus a forecast 1.87 billion euro loss in an analyst poll compiled by Reuters.

Earlier in the week, Ford Motor reported a second-quarter operating loss of $1.9 billion. General Motors had an operating loss of $1.2 billion.

In North America, FCA made adjusted earnings before interest and tax of 39 million euros.

CEO Mike Manley said production in North America was back to pre-pandemic levels, apart from plants in Warren, Michigan and Toluca, Mexico, which are being retooled for new products.

“We expect a much, much better second half,” he told investors on a conference call.

Milan-listed FCA shares were up 1.5 per cent at 1310 GMT, having been little changed before the results.

Manley said the group planned to launch a series of new Jeep models next year, including a new Wagoneer and Grand Wagoneer, and a redesigned Grand Cherokee.

Story continues below advertisement

Asked about electric pickup trucks coming from its competitors, Manley said FCA was “very committed” to electrifying its vehicles, adding: “Pickup trucks is a key franchise for us. We’re not going to sit on the sidelines.”

FCA, which is set to tie-up with Peugeot maker PSA to create Stellantis, the world’s fourth largest carmaker, said an ongoing probe by European Commission competition authorities was not expected to delay the merger timetable.

Despite the pandemic, PSA earlier this week delivered a profit in the first half of the year.

FCA said its industrial free cash flow was minus 4.9 billion euros in the second quarter, with a slightly lower cash burn versus January-March.

It finished the quarter with liquidity of 17.5 billion euros. That does not include 4.5 billion euros still available on its loan facility. Ford had liquidity of $40 billion, and GM $31 billion.

Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow topics related to this article:

View more suggestions in Following Read more about following topics and authors
Report an error
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

If you do not see your comment posted immediately, it is being reviewed by the moderation team and may appear shortly, generally within an hour.

We aim to have all comments reviewed in a timely manner.

Comments that violate our community guidelines will not be posted.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies