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Home >Companies >News >PSA, Fiat Chrysler in black despite fall in sales

PSA, Fiat Chrysler in black despite fall in sales

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FILE PHOTO: A Fiat Chrysler Automobiles (FCA) sign is at the U.S. headquarters in Auburn Hills, Michigan, U.S.

Fiat Chrysler (FCA) eked out a net profit of just 24 million euros ($29 million) last year, according to a Stellantis statement, holding up against multiple virus lockdowns which devastated the economy

US-Italian automaker Fiat Chrysler and France's PSA, now merged in the Stellantis group, both managed to chalk up a 2020 profit despite falling sales due to the coronavirus pandemic, company results showed Wednesday.

US-Italian automaker Fiat Chrysler and France's PSA, now merged in the Stellantis group, both managed to chalk up a 2020 profit despite falling sales due to the coronavirus pandemic, company results showed Wednesday.

The two automakers, which completed their merger in January, bring together marques such as Peugeot, Citroen, Fiat, Chrysler, Jeep, Alfa Romeo and Maserati.

The two automakers, which completed their merger in January, bring together marques such as Peugeot, Citroen, Fiat, Chrysler, Jeep, Alfa Romeo and Maserati.

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Fiat Chrysler (FCA) eked out a net profit of just 24 million euros ($29 million) last year, according to a Stellantis statement, holding up against multiple virus lockdowns which devastated the economy.

In 2019, Fiat Chrysler posted a net profit of 2.7 billion euros.

For the fourth quarter of 2020, the company said net profit was 1.56 billion euros, down just one percent compared with the same period a year earlier as the industry picked up after virus restrictions were eased.

Sales however plunged 20 percent to 86.7 billion euros for the year, with volume down 22 percent to 3.43 million vehicles, reflecting the damage caused earlier in the first wave of the pandemic.

PSA meanwhile had a 2020 consolidated net income of 2.0 billion euros, according to Netherlands-based Stellantis.

PSA revenues plunged to 60.7 billion euros, from 74 billion euros in 2019, with volumes slumping nearly 28 percent to 2.5 million vehicles, Stellantis said.

It said that despite the problems caused by Covid-19, both parts of the group had managed to keep prices steady, producing a profit margin of 4.3 percent at FCA and 6.1 percent at PSA.

"These figures demonstrate the financial soundness of Stellantis, bringing together two strong and healthy companies," group boss Carlos Tavares said.

"Stellantis gets off to a flying start and is fully focused on achieving the full promised synergies" of the merger, estimated at five million euros a year, said Tavares, who previously headed up PSA.

The new company is targeting an operating profit margin of between 5.5 and 7.5 percent this year -- as long as there are no further significant lockdowns.

If that is the case, there should be a market rebound of 10 percent in Europe, 8.0 percent in North America, 20 percent in South America and 5.0 percent in China, it added.

Like nearly all its auto peers, Stellantis is aiming to up its offer of electric vehicles -- currently 29 models, to be increased by 10 this year -- which it wants to make more affordable for the middle classes.

Stellantis, based in Amsterdam, has nearly 300,000 employees worldwide.

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This story has been published from a wire agency feed without modifications to the text.

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