FCA US Profits Drop in 2014 on One-Time Expenses
DETROIT – FCA US, formerly Chrysler Group, reported Wednesday a drop in net income to $1.2 billion for 2014, compared to a net profit of $2.8 billion in 2013, reported MLive. That came despite a rise of 15 percent in revenue to $83.1 billion. The Auburn Hills-based subsidiary of Fiat Chrysler Automobiles NV said the ... Read More »
DETROIT – FCA US, formerly Chrysler Group, reported Wednesday a drop in net income to $1.2 billion for 2014, compared to a net profit of $2.8 billion in 2013, reported MLive.
That came despite a rise of 15 percent in revenue to $83.1 billion.
The Auburn Hills-based subsidiary of Fiat Chrysler Automobiles NV said the drop in profit was the result of special, one-time charges. Adjusted items included a $504 million loss stemming from debt repayment on a note held by the UAW Retiree Medical Benefits Trust, and from a $672 million charge for commitments associated with the January 2014 memorandum of understanding signed with the UAW.
The company said on an adjusted basis, net income was up 31 percent to $2.4 billion.
The company’s operating margin was 4.2 percent for 2014, with operating profits of $3.5 billion. FCA US’ operating margin in 2013 was 4.4 percent.
Market share in the U.S. grew 100 basis points to 12.4 percent.
Last week, FCA NV, the parent company of FCA US, reported net profit of 632 million euros, or about $717.4 million, for 2014, driven in part by strong sales of the Jeep brand. The company’s full-year revenues grew 11 percent to 96 billion euros, or about $109 billion.
FCA US’ global vehicle sales 15 percent to 2.8 million units in 2014. Sales in the U.S. were up 16 percent.
Also on Tuesday, FCA US also released a 14 percent rise for the month of January to 145,007 units.
More Industry

Nebraska Rooftop Changes Hands
The Gregg Young Automotive Group has sold its second dealership to Janssen Auto Group, both in Plattsmouth, Neb.
Read More →
Penske Auto Group Deal a Record
The deal to take the dealership and transportation services company private sets a new pace for industry buy-sell transactions.
Read More →
War Toll a Damper on Used Auto Prices
Cox Automotive found wholesale depreciation to be elevated in September amid high fuel prices and this year's unusual hurricane season.
Read More →
Bridge the Maintenance Gap
With many drivers missing recommended maintenance, service departments offering transparency and efficiency have a better chance of reaching financially strained consumers.
Read More →
California Store Has New Owner
The longtime dealership in the northern part of the state is known for robust fleet sales and has served the state capital for 115 years.
Read More →
BMW Plant Pursues Cleaner Energy
BMW Group Plant Leipzig has utilized hydrogen to help power its production since 2013, but a new pipeline is planned to take it to another level.
Read More →
Auto Affordability Inches Up
The latest Cox Automotive and Moody’s Analytics index shows a slight increase in new-vehicle affordability despite high prices.
Read More →
Ohio Auto Group Under New Ownership
After 79 years with the Schluter family, Mansfield Auto Group has been acquired by Missouri-based Clement Auto Group.
Read More →
RV Group Expands Carolina Footprint
Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.
Read More →
Agent Acumen
An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.
Read More →