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  • Drew Dowdell
    Drew Dowdell

    Fiat Chrysler Posts Record Earning for Q3 2019

      ...Margin is at an all-time high also...

    Fiat Chrysler posted a record $2.3 billion in operating profit in North America for third quarter 2019. Must of that was attributed to maintaining a firm hold on costs and customers opting for higher-trim level vehicles.  Margin for the quarter in North America climbed to 10.6 percent, an all time high. Overall, North American revenue was flat at $21.3 billion and shipments down 11 percent.

    Globally, adjusted earnings rose 5 percent while revenue declined 1 percent.  Global shipments were also down 9 percent. 

    Even with all of that good news, one time charges added up to a $200 million loss, including $795 million for a settlement over the diesel scandal, and a $1.5 billion impairment charge from its European small-car lineup and the Alfa Romeo brand. 

    FCA announced earlier today their intention to merge with European manufacturer PSA. The combined companies would form the fourth largest automobile company in the world. 

    Edited by Drew Dowdell

    Source: Automotive News



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    Kill off Fiat and Alfa should have never been allowed to happen and they would be been profitable. Alfa was a stupid decision to bring it back from the grave as was bringing Fiat here to the US.

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    I've seen maybe a 1/2 dozen Stelvios and 1/2 dozen Guilias around NE Ohio over the last few months...they are selling, albeit in small numbers..certainly distinctive looking. I hear they drive great..

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    When you spend near zero on new product, easy to post a profit.  I feel like Carlos Tavares will overhaul FCA and those weak brands will be whacked.  I would't be surprised if Ram and Jeep are the only 2 left, but Dodge could stay selling rebadged Peugeots and Opels and maybe Maserati stays because it is their top brand and in theory should have high margins.

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    fiat is dead; a vegetable. Sold 900 vehicles in Dec '18 (U.S.). Alfa sold 1900 the same month. Chrysler sold 12,425 and Dodge sold 32,xxx.
    Bury the dying and invest in the living.

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    Too bad those record profits are derived from little to no investment in product.  Then again, with the merger with Peugeot, many brands will be shed.  The correct question is which ones WILL survive.

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    10 hours ago, riviera74 said:

    Too bad those record profits are derived from little to no investment in product.  Then again, with the merger with Peugeot, many brands will be shed.  The correct question is which ones WILL survive.

    Dealerships will Sue, this will end up in the courts if they try to kill off the Dodge and Chrysler dealerships here. I would expect re-badges to go in. The only way D&C get killed off is if they are given P&O dealerships to replace them. I think marketing would hold a P&O dealership back compared to re-badge P&O product as D&C product.

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    No one cares about the American brands except Jeep and Ram. Expect a full europeanization of the lineup. They want to take on VW and you don't do that with LX platform cars. 

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    Why anyone would think Dodge is a potential victim makes no sense. These are numbers people; the numbers point to the FCA Euro brands, not to Dodge. Chrysler is a bit more murky, but they have to be doing better than either fiat or alfa are. 
    Doing Euro rebadges of C/D will be a huge waste of capital as those brands would quickly sink below the waves. Rebadged euro cars don’t work in the USDM.

    Edited by balthazar

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    9 minutes ago, balthazar said:

    Why anyone would think Dodge is a potential victim makes no sense. These are number people; the numbers point to the FCA Euro brands, not to Dodge. Chrysler is a bit more murky, bit they have tp be doing better than either fiat or alfa are. 
    Doing Euro rebadges of C/D will be a huge waste of capital as those brands would quickly sink below the waves. Rebadged euro cars don’t work in the USDM.

    We don't have and recent evidence of that either way. 

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    Dodge especially is seeped in being American. Theres no fans waving Buick flags, but there are legions of Dodge fans. You swap in some nose-jobbed alfa and that all goes down the toilet. 

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    Will anyone really miss FIAT and Alfa Romeo?  Hell no to FIAT and not really to Alfa Romeo. 

    Will anyone miss Chrysler and Dodge?  That is unknown.  Rebadging Peugeot as a Chrysler or Dodge might work IF they replace the 200/Avenger or the smaller cars.  The 300/Charger/Challenger would be a much harder sell to convert (and should not be rebadged Peugeot cars anyway).  Jeep and RAM will be fine and ultimately left alone since that is where the CASH FLOW really is.

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    32 minutes ago, riviera74 said:

    Will anyone really miss FIAT and Alfa Romeo?  Hell no to FIAT and not really to Alfa Romeo. 

    Will anyone miss Chrysler and Dodge?  That is unknown.

    Look at the sales numbers I posted above- there’s your answer.

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    57 minutes ago, Drew Dowdell said:

    We don't have and recent evidence of that either way. 

    Well, the Regal is a rebadged Euro model and a sales failure, the Dart and 200 were based on a European platform and were failures.  Anecdotal, maybe.   I can't imagine trying to sell Peugeot/Citroen FWD sedans as Dodge or Chryslers, the small and midsize FWD sedan niche is a dead end these days.

    Peugeot and Citroen have lots of CUVs, but Jeep has lots of CUVs.  Will be interesting to see how it all shakes out. 

    Edited by Robert Hall

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    4 minutes ago, Robert Hall said:

    Well, the Regal is a rebadged Euro model and a sales failure, the Dart and 200 were based on a European platform and were failures.  Anecdotal, maybe. 

    Dart and 200 weren't rebadges. The old Regal sold fine as a rebadged Opel. The problem now is people moving away from sedans. 

    Promaster and Promaster city are doing just fine.  Transit is a best seller as is Transit connect. 

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    1 minute ago, Drew Dowdell said:

    Dart and 200 weren't rebadges.  

    I didn't say they were, but were very forgettable appliances on a Fiat-Alfa platform..

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    Just now, Robert Hall said:

    I didn't say they were, but were very forgettable appliances on a Fiat-Alfa platform..

    Dart was an economy sedan. They're all forgettable. 

    200 was actually a pretty good car, positioned incorrectly by Chrysler to try and cover too many bases. It should have been lined up directly with Regal instead of trying to compete with CamCord. 

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    Promaster/Transit Connect are emotionless / utilitarian purchases, a consumer scenario not applicable to private pass vehicle purchases.

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    3 hours ago, Drew Dowdell said:

    No one cares about the American brands except Jeep and Ram. Expect a full europeanization of the lineup. They want to take on VW and you don't do that with LX platform cars. 

    Thank you for your input on this, I was actually not thinking that the LX platform auto's would survive, just the Dealership names of Dodge and Chrysler with rebadge of PSA auto's having those badges on them.

    3 hours ago, balthazar said:

    Why anyone would think Dodge is a potential victim makes no sense. These are number people; the numbers point to the FCA Euro brands, not to Dodge. Chrysler is a bit more murky, bit they have tp be doing better than either fiat or alfa are. 
    Doing Euro rebadges of C/D will be a huge waste of capital as those brands would quickly sink below the waves. Rebadged euro cars don’t work in the USDM.

    I disagree, there is no evidence that a D or C badge on a Pugeot or Opel would not sell here. I would expect those divisions to add a bit of American flair anyways to a P or O platform auto being sold under those names.

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    6 minutes ago, dfelt said:

    Thank you for your input on this, I was actually not thinking that the LX platform auto's would survive, just the Dealership names of Dodge and Chrysler with rebadge of PSA auto's having those badges on them.

    That would be a disaster..given the LX platform models are the only thing Dodge has going, I'd assume they will survive and evolve.  Without the Charger and Challenger there is no Dodge.  

    The Durango will probably be replaced by the 3 row next-gen Grand Cherokee, the Journey could be replaced by something derived from the next Cherokee..   I'm not sure if Dodge needs CUVs/SUVs since Jeep has plenty.   For Chrysler, I don't see the Voyager/Pacifica going anywhere, not sure about the 300..

    It will be interesting to see if we see Peugeot/Citroen/DS dealers eventually if this goes through, or if those brands get integrated into the existing FCA JRCD dealers.  Though I can't see PSA-branded FWD midsize sedans or compact hatchbacks doing well in the US, given the CUV-dominant market we have now...

    Edited by Robert Hall
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    There apparently is a new Charger on the books based on the Guilia platform. But if it survives is another question.  They should still make a premium version of it and call it 300... but they won't. 

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    2 hours ago, balthazar said:

    Look at the sales numbers I posted above- there’s your answer.

    Yet Pugeot out sells Chrysler and Dodge.

    http://carsalesbase.com/european-car-sales-data/peugeot/

    2019, they have sold to date = 664,964 auto's. I have to think a rebadge of their auto's could sell here.

    P&O auto's are doing much better than Fiat and Alfa. https://www.best-selling-cars.com/europe/2019-september-europe-car-sales-and-market-analysis/

    hundreds of thousands better.

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    Just now, dfelt said:

    Yet Pugeot out sells Chrysler and Dodge.

    http://carsalesbase.com/european-car-sales-data/peugeot/

    2019, they have sold to date = 664,964 auto's. I have to think a rebadge of their auto's could sell here.

    P&O auto's are doing much better than Fiat and Alfa. https://www.best-selling-cars.com/europe/2019-september-europe-car-sales-and-market-analysis/

    hundreds of thousands better.

    That's in Europe.  I can't imagine they could sell much in the US.   

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    3 minutes ago, Robert Hall said:

    That would be a disaster..given the LX platform models are the only thing Dodge has going, I'd assume they will survive and evolve.  Without the Charger and Challenger there is no Dodge.  

    The Durango will probably be replaced by the 3 row next-gen Grand Cherokee, the Journey could be replaced by something derived from the next Cherokee..   I'm not sure if Dodge needs CUVs/SUVs since Jeep has plenty.   For Chrysler, I don't see the Voyager/Pacifica going anywhere, not sure about the 300..

    It will be interesting to see if we see Peugeot/Citroen/DS dealers eventually if this goes through, or if those brands get integrated into the existing FCA JRCD dealers.  Though I can't see PSA-branded FWD midsize sedans or compact hatchbacks doing well in the US, given the CUV-dominant market we have now...

    I disagree with the thinking that it would be a disaster.

    Take the quarter million unit selling Pugoet 208 and you have an AWD standard, Sport and RT model and then evetually you add in the Hellcat. Nothing say's FCA/PSA could not do a Hellcat TTV6 version with the RT being a hipo TT4 banger.

    1 minute ago, Robert Hall said:

    That's in Europe.  I can't imagine they could sell much in the US.   

    Do not know until they try and using a global platform which all auto companies are doing, I see no reason to not use one of the P&O lines to invigorate D&C with product.

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    5 minutes ago, dfelt said:

    I disagree with the thinking that it would be a disaster.

    Take the quarter million unit selling Pugoet 208 and you have an AWD standard, Sport and RT model and then evetually you add in the Hellcat. Nothing say's FCA/PSA could not do a Hellcat TTV6 version with the RT being a hipo TT4 banger.

    Do not know until they try and using a global platform which all auto companies are doing, I see no reason to not use one of the P&O lines to invigorate D&C with product.

    Blah....a Charger on FWD/transverse platform would make no sense.   The 208 is just a FWD/transverse engine generic.  At least the Guilia platform is a proper RWD platform. 

    The 208 is a good Golf competitor, but would it sell here?   In this CUV/SUV/truck dominated market? 

    Edited by Robert Hall
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