FCA limits the damage of the coronavirus. The Italian-American automotive group reports in the second quarter of 2020 a net loss and adjusted net loss both of 1 billion euros, and a negative adjusted EBIT of 0,9 billion euros. Turnover fell by 56% to 11,7 billion euros. Industrial free cash flow was negative 4,9 billion euros, although the North American market closed in positive territory, as well as operating income and cash flow improved significantly in June. The results match those of the betrothed Psa Peugeot, which, on the other hand, even closed the semester with a profit, despite the halving of sales.
Fiat Chrysler has delivered globally 424 thousand vehicles, with a decrease of 63%. These results compare with data which, in the second quarter of 2019, were of a completely different tenor: on a comparable basis, net profit had been 793 million euros, while including the capital gain made on the sale of Magneti Marelli and the profits of the latter, the group's net profit had been 4,6 billion. Covid has therefore had an impact, even if the company led by Mike Manley has valid reasons for believing that it has contained the negative effects: "Our second quarter - commented the CEO - showed how decisive actions and the contribution of our people have allowed FCA to contain the impact of the Covid-19 crisis".
“While the company remains vigilant about the health and safety of its employees – added the manager -, our factories are now operational, the network has resumed sales both in venues and online, and we have the flexibility and financial strength to push our plans forward.” As mentioned, good results have come in particular from North America, and also from South America. In the United States, demand was higher than expected with FCA increasing its share of the retail market in the quarter and recording an adjusted EBIT of 39 million euros. In South America FCA is in first place for the first time in terms of sales and market share, which stood at 15.% for the quarter thanks above all to the exploit in Brazil, where the company reached a share of 19,8%”.
