Fiat Chrysler Narrows First-Quarter Profit Gap Thanks to Jeep and Ram Brands
Fiat Chrysler Automobiles may have had a rough start this year, but it has quickly recovered thanks to its Jeep and Ram brands. The Italian-American carmaker shrank the profit gap between it, General Motors, and Ford during its first quarter sales after doubling operating margins in North America.
For the past six years, Fiat Chrysler has increased its sales in the United States, but it has yet to catch up to its Detroit-based competitors. Now, though, it is closing the margin significantly.
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In North America alone, the carmaker earned $1.39 billion in the first quarter. This means that it earned nearly $2,200 per vehicle sold in the region. Compared to last year’s earnings of about $683 million, this is a significant increase.
Jeep has a lot to do with the carmaker’s improvement. The iconic brand, which is celebrating its 75th anniversary this year, currently has a 5% market share in the United States, easily outperforming other light-truck brands. This includes Land Rover, which has a market share under 1% and GMC, which is only at 3%.
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Because of Jeep’s superior performance compared to Fiat Chrysler other brands, the company has decided to focus more on its crossovers, SUVs, and pickup trucks. Like Jeep, Ram has seen a steady increase in market share in recent years. This increase in market shares, which have a lot to do with the decreasing price of gasoline, has led Fiat Chrysler to decide to seek a partnership for the production of the mid-sized Dodge Dart and Chrysler 200 models.
News Source: The Wall Street Journal
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