The FCA (Fiat Chrysler Automobiles) Group has posted losses totaling a staggering $1.84 billion USD during the first quarter of 2020 – virtually all of it, of course, due to the current coronavirus pandemic that has forced the closure of factories and dealerships.
Automotive News Canada reports that the company’s net revenue fell by 16% in the period, for a total $22.3 billion. The company declared adjusted profits of $56.3 million before interest payments and taxes, or 95% less than during Q1 of 2019.
A truly jaw-dropping fall.
North American earnings dropped by 48% to $594 million, mainly because production in the U.S. and in Canada came to a full stop during the last two weeks of the quarter. For North America, net revenues dropped by 9% to $15.7 billion dollars, with local deliveries falling by 16%.
Globally, shipments fell by 21% to 818,000 units due, according to FCA, to the temporary suspension of production in every region and to the drop in consumer demand.
FCA boss Mike Manley said in a statement that the Group’s priority has over the past several weeks been the safety and health of its workers and their communities. He acknowledged that the pandemic has had and continues to have a huge impact on the company’s operations.
If there’s light at the tunnel, it’s in the fact that, as of now, 90% of the brand’s North American dealerships are open for business, if not on site then online.
We’ve also learned, moreover, that FCA intends to re-open its assembly plants as of May 18, which is of course a necessary first step to any recovery.