Diesel emissions cost estimate of $812M dings Fiat Chrysler profits
Fiat Chrysler Automobiles
Fiat Chrysler Automobiles admitted having made a net profit of $642 million in net profit which was recorded in the first quarter. Notably, this is after the former CEO Sergio Marchionne died. However, this profit had reduced in comparison to the previous profit made by the previous CEO. The company did not acknowledge the drop and claimed that it was due to the diesel scandal in the US. Essentially, the company made good profits during the former CEO Sergio Marchionne before he died. With the coming of the new CEO Mike Manley, there was a decline in profit and was claimed on the diesel scandal.
During the third quarter under the new CEO, it was reported that the future of the company was becoming clearer. Indeed, this was after it made $2.28 billion without taxes and interest (Lawrence n.d). Notably, this was a 13% increase compared to the same period in the previous year. Primarily, this increase was due to the high sales of Jeep and Ram in North America. Further, the pretax was up by 51% for the quarter as compared to the previous year 2017. After the death of Sergio, Manley came up with several strategies to manage the company for effective profit provision. Indeed, the results can be seen as a success such as securing a deal to sell FCA’s Magneti Marelli components operations for more than $7 billion (Lawrence n.d). The plan was that the sales need to allow for a payout of $2.28 billio…
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