Fiat Chrysler Automobiles on course to cancel debt this year

Italian-American car maker announces it has cleared more debt than expected in first quarter.

By Sam Sheehan, Autocar UK calendar 27 Apr 2018 Views icon5902 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp
The Alfa Romeo Stelvio is one of FCA's best-selling cars

The Alfa Romeo Stelvio is one of FCA's best-selling cars

Fiat Chrysler Automobiles could clear all debts this year if its efficiency-boosting measures continue to have the same effect.

The Italian-American carmaker announced in its first-quarter financial report that it had reduced current debt to €1.3 billion (£1.1bn) (Rs 10,217 crores) while raising its operating profit by 5% to €1.6bn (£1.4bn) (Rs 13,003 crores).

FCA produced 1.2 million cars in the first quarter of 2018 – a 5% increase on the year before. It achieved sales growth in all regions, with the new Jeep Compass and Alfa Romeo Stelvio listed as key contributors to the boost.

The company's capital spending was down by €900m (Rs 7,261 crores) in the first three months due to what it is described as “programme timing”, but experts think it could hint at an upcoming boost of investment.

In the statement, FCA predicted that it could cancel its debt this summer before generating around €4bn in net cash by the end of 2018.

FCA boss Sergio Marchionne, who is standing down next year, has led the group through this recovery period by reducing FCA’s debts to make it more competitive against its US rivals, General Motors and Ford.

Both of those rivals have recently cut their costs. GM sold off its last European brands, Opel and Vauxhall, to the PSA Group in 2017, while Ford has just confirmed that it will be ditching the Fiesta and all saloons from its US line-up.

FCA looks set to ditch diesel from the Alfa Romeo, Fiat, Jeep and Maserati ranges in the coming months in a bid to further boost efficiencies. Although unconfirmed, reports suggest the decision will be announced in June as part of the group’s mid-term plan.

 

Also Read: 

 

 

RELATED ARTICLES
US tariffs will hurt both automakers and US manufacturing: ACEA

auther Autocar India calendar27 Mar 2025

European Automobile Manufacturers’ Association says that the EU and the US must engage in dialogue to find an immediate ...

Trump levies 25% tariff on all cars imported to US

auther Autocar India calendar27 Mar 2025

President Donald Trump claims new levy on all cars and car parts shipped into the country will create "tremendous growth...

Hyundai opens its third factory in the US: Metaplant America

auther Autocar India calendar27 Mar 2025

Hyundai Motor Group Metaplant America's vehicle assembly and battery plant is the key pillar of the Hyundai Motor Group’...