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Friday, March 6, 2015

FCA posts $716m profit in 2014, has big plans for 2015


In practically every metric, Fiat Chrysler Automobiles announced growing worldwide earnings for 2014 in its latest financial release. The automaker sold 4.608 million vehicles globally for the year, a 6-percent jump, and total revenue grew 11 percent to 96.090 billion euros ($109 billion). Profits before taxes also increased by 161 million euros ($182 million) from last year to 1.176 billion euros ($1.3 billion). However, net profits did tumble by 1.319 billion euros ($1.5 billion) to a total of 632 million euros ($716 million).


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These figures put FCA slightly ahead of what some analysts expected. According to Automotive News, the company's adjusted earnings before taxes and interest of 3.651 billion euros ($4.1 billion) beat a forecast figure of 3.4 billion euros ($3.9 billion).

Regionally, Europe is showing signs of a comeback. FCA lost 109 million euros ($123 million) there in 2014, but that was almost a triumph compared to the 506 million euro ($573 million) loss in 2013. According to Automotive News, North America played a major role in the company's success, accounting for 55 percent of its revenue.

While these annual figures show growth, FCA is even more optimistic about its prospects in 2015. The company is forecasting shipments of between 4.8 and 5 million vehicles worldwide next year. It also estimates earnings before interest and taxes to reach 4.1 billion and 4.5 billion euros ($4.6 billion – $5.1 billion).

You can read FCA's full results in PDF format, here. While this release focuses on worldwide figures, FCA US, previously known as Chrysler Group, announces its US results on February 3.News Source: Fiat Chrysler Automobiles, Automotive News - sub. req.Earnings/FinancialsChryslerFiat2014 earningsearningsfcafiat chrysler automobilesfiat chrysler earningsI'm reporting this comment as:Rude or offensiveNot constructive / off-topicSexual contentSpam or misleadingOtherReported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.



True, there's room for improvement but those stories don't tell the whole story. In any list, there always has to be someone who places last, even if the difference between it and the first place are minuscule. Also, many so-called reliability studies fail to differentiate between recurring visit to the dealership for a flickering dome light and a cracked engine block. It's not like you see FCA vehicles littering the emergency lanes. What I don't understand is that I hear BMW / Mini and Audi owners complain incessantly about their cars' recurring issues but they're still perceived as quality vehicles, and their owners immediately get another when the lease runs out.


Marchoinne is a person who loves the products -- from design onward.  Create a great product and the "numbers will just take care of themselves".  The bean counter hate these people to the core as it undermines how little they really know (again that computer and PR team could replace them).  Qualitative management style (like Marchoinne) tends to look into the long term, and will sacrifice the short term (oh risk!! isn't that what the big wages are for), and it takes a lot more talent and insight (being in involved and understanding every aspect of your business).  Quantitative bean counters can only trust the present, and the farther in the future they look, the more blind and untrusting they are.  So they sell the "real" and back it with fear of the future -- they are literalist or realists -- and they make "common sense" -- but the lack the VISION of the Qualitative people like Marchoinne who points to the future and faith in it being a sunny place of endless opportunities.  The Vision is very hard to instill, but if you do -- that vision will guides actions and behaviours to get satisfaction and success that eclipses the doubters and drives them absolutely -- well literally insane in my experience as optimism in the future is like sunlight to vampires to them -- and they try to discredit people like Marchoinne before he can bring to light that vision.


If you want to keep the money in this country, you are better of buying vehicles with higher content and assembly in this country.  Which surprisingly aren't always GM + Ford.  Furthermore, GM + Ford are both publicly traded companies with many investors' shares being overseas and many import brands being within the country.  Continue to believe Ford and GM are domestic brands, but when you really follow the money you might find you are on the wrong side of the argument. 


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