Fiat Chrysler Third Quarter Sales Surprise Industry Despite Recalls
Despite multiple recalls this year, Fiat Chrysler Automobiles isn’t posting as significant of a loss as you might expect. In fact, the Italian-American carmaker reported its third quarter earnings on Wednesday and they significantly beat expectations.
“A better-than-expected 35% jump in quarterly earnings [was] helped by strong performance in North America,” Reuters reported.
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In terms of earnings, Fiat Chrysler is standing out in North America with booming sales with its Ram Truck brand and with the SUV models from each of its brands. Jeep brand in particular made a huge splash in the North American market, as the newest Cherokee and Grand Cherokee models came onto market.
While these sales were great, the costs of the recalls caused a reported loss of $330 million. This loss is sure to change once the automaker fixes all the recalls, especially with the new Jeep Wrangler coming on the market, along with the 2016 Dodge Charger Hellcat and 2016 Dodge Challenger Hellcat.
Fiat Chrysler didn’t do as well in Latin American and the Asia Pacific region, it managed to post a gain in the European market, despite the market’s relatively tepid sales for other automakers. There’s no doubt that Fiat Chrysler will recover its sales next quarter.