MILAN, Oct 31 — Italian-US automaker Fiat Chrysler, in talks to merge with French rival PSA, today posted a €179 million (RM834 million) loss in its third quarter, due to write-offs in Europe related to restructuring.
In Europe, where net revenues fell six per cent in the three months to September 30, Fiat Chrysler (FCA) has been cutting under-performing brands and restructuring.
In North America, however, a key market whose brands include Jeep, Dodge and Ram, adjusted margins improved to 10.6 per cent, helped by better pricing, industrial efficiencies and better managed stock at dealerships.
“Changes to our product portfolio plans are central to our strategy to improve performance in EMEA (Europe, Middle East, Africa) and Maserati,” Chief Executive Mike Manley said in a statement.
The company was on track to deliver its full-year outlook, Manley said. The company is targeting an adjusted profit of €6.7 billion, flat with 2018.
On an adjusted basis, FCA posted a profit of €1.9 million in the third quarter. Overall revenue fell one per cent in the quarter to €27.3 billion.
Yesterday, FCA confirmed that it was in talks to merge with PSA, the maker of Peugeot, Citroen and Opel, to create a company with combined sales of nearly €170 billion that would become the world’s fourth-largest automaker. — AFP
