MENU
SEARCHDETROIT — Fiat Chrysler Automobiles said on Wednesday that profits at its American subsidiary fell 3 percent in the second quarter, primarily because of a record civil penalty against the company for violating federal safety laws, reports the New York Times. The subsidiary, which encompasses operations of the former Detroit automaker Chrysler, reported net income of ... Read More »
DETROIT — Fiat Chrysler Automobiles said on Wednesday that profits at its American subsidiary fell 3 percent in the second quarter, primarily because of a record civil penalty against the company for violating federal safety laws, reports the New York Times.
The subsidiary, which encompasses operations of the former Detroit automaker Chrysler, reported net income of $598 million for the quarter compared with $619 million in the same period a year ago.
The decrease was attributed to a charge of $90 million for fines agreed to with federal regulators, as well as a $71 million charge to extinguish debt.
Last week, Fiat Chrysler signed a consent order with the National Highway Traffic Safety Administration to resolve the government’s wide-ranging investigation of 23 vehicle recalls covering more than 11 million vehicles.
The order called for a cash fine of $70 million and a commitment by the company to spend $20 million to satisfy safety performance requirements, including buying back defective vehicles.
Fiat Chrysler could be assessed another $15 million in penalties if further safety violations are discovered by an independent monitor, according to the order.
Last week, the company’s chief executive, Sergio Marchionne, said the Chrysler subsidiary had committed to overhaul its safety practices and recall procedures. “We need to comply 100 percent of the time,” he said.
While its results dropped from a year ago, Chrysler remains the Italian-American automaker’s most profitable business unit.
Revenue for the subsidiary, which include Chrysler’s North American and international operations, rose 11 percent during the quarter, to $22.6 billion.
Its worldwide vehicle sales increased 5 percent, to 780,000, in the quarter, from a year earlier. The subsidiary ended the quarter with a United States market share of 12.4 percent, which represented a slight increase from the second quarter in 2014.
The subsidiary also improved its cash position during the period, ending the quarter with net cash — excluding financial liabilities — of $2.1 billion. At the end of the first quarter, it had about $1.2 billion
Dealers should aim to build a positive work environment, helping employees execute an efficient experience, from their online research to the final delivery of the vehicle.
Read More →
A cloudy April forecast was expected due to last April’s sales surge in anticipation of U.S. trade tariff-inflated prices. Meanwhile, automakers pumped up incentives to address today’s consumer wallet woes.
Read More →
A recent price spike due to several larger market forces, though it hasn’t dulled demand, is pushing more consumers to efficient models to squeeze in buys.
Read More →
A group out West picked up the major D.C.-area collection, putting it in the upper tiers of private automotive groups in the U.S.
Read More →
Lenders loosened access for subprime borrowers, and consumers with negative equity reached a record high, Cox Automotive reported.
Read More →
U.S. consumer interest in electric vehicles lags behind other countries despite the rising gas prices caused by the ongoing war in the Middle East.
Read More →
Research reveals the brands and models most likely to have higher recall rates over their lifetimes. While some brands rank high, addressing safety issues can be a selling point.
Read More →
Cox Automotive data shows Americans doubled down on big-is-better despite price increases. Slightly higher incentives helped fuel the demand.
Read More →
Cox Automotive research shows both the opportunities and the challenges in turning consumers’ growing affordability needs into increased fixed-operations revenue.
Read More →
The partner you choose for growth and expansion is key, because better is the ultimate goal instead of growth for growth’s sake.
Read More →