FCA is Leader in Latin America in 2Q20By Alejandro Enríquez | Fri, 07/31/2020 - 12:10
As operations and sales restart in North America, so did FCA's profits. As the automobile group presented its 2Q20 results, the group highlights that due to actions taken in North America against COVID-19, the company reached + an adjusted EBIT of €$39 million (US$46.13 million). "Our second quarter showed that decisive actions and extraordinary contributions from our workforce enabled FCA to contain the impact of the COVID-19 crisis," said Mike Manley, CEO of the group on a statement.
Worldwide shipments of the group accounted for a total of 424,000 units, a 63 percent decrease compared to the previous year due to the pandemic. The group states that the US consumer demand exceeded company's expectations as the company improved its retail market share during 2Q20. The Dodge brand played a leading role as it achieved first place in J.D. Power's Initial Quality Study.
As for Latin America, the group reports that for the first time, FCA leads in vehicle sales, finishing the quarter with 15.9 percent of the market. A key driver to achieve this result was Brazil, where FCA is market leader with a 19.8 percent market share. Consumer demand increased for pickup trucks and SUVs. The market has also responded well to the recently introduced Fiat Strada.
In the Europe, Middle East and Africa region, the pandemic accelerated FCA's intentions to focus on vehicle electrification. "As the consumer market continues to recover, much of the Group's focus has shifted to the highly anticipated electrified vehicle introductions of the Made-in-Europe Jeep Renegade and Compass ‘4xe’ PHEVs with production starting in the quarter, as well as the all-new full-electric Fiat 500 to start in the third quarter," said the company on a statement. During this period, Maserati also anticipated the introduction of the new Ghibli Hybrid to debut in July.
The 2Q20 report also confirmed the decision announced previously that amid its merger with PSA Group, both automakers will refrain from distributing in 2020 the ordinary dividend for the 2019 financial year due to the effects of the pandemic. "The COVID-19 crisis has further underlined the compelling logic of the Groupe PSA and FCA merger," the company stated
Stellantis will be the new corporate name of the 50:50 merger between Groupe PSA and FCA. The word, according to a common statement, is rooted in the Latin verb stello, which means "to brighten with stars." The new name will be used exclusively at the Group level and as a corporate brand. Stellantis will be the result of a long-awaited merger that will be consolidated in 1Q21.
You can read FCA Group’s second quarter report here.