Fiat Chrysler Automobiles

Performance indicators

2020

Drop in net profit to €24m

On March 9, 2021, Fiat Chrysler Automobiles announced the results of its activities for 2020. FCA's net profit fell from 6.63 billion euro in 2019 to 24 million euros in 2020, according to a company report. At the same time, adjusted net profit was recorded at 1.9 billion euros (against 4.3 billion euros in 2019). And adjusted earnings before interest and taxes (EBIT) amounted to 3.7 billion, euro EBIT margin - 4.3%.

Diluted earnings per share from continuing operations ("diluted EPS") at the end of 2020 were €0.02 versus €1.71 per share in 2019, while adjusted diluted EPS was €1.19 (€2.73 per share in 2019).

The company's turnover for the reporting period amounted to 86,676 million euros (against 108,187 million euros at the end of 2019). Cash flow from operating activities - 9,183 million euros (10,462 million euros in 2019). The positive free flow of cash from industrial activities amounted to 0.6 billion euros. A significant inflow of cash in the second half of the year compensated for pandemic-related cash costs in the first half of the year. Capital expenditures were recorded at €8.6 billion (+ €0.2 billion).

The total global volume of shipments amounted to 3.435 million units (-22%), due to production interruptions and a drop in demand due to the COVID-19 pandemic.

Available liquidity as of December 31, 2020 - €31.4 billion, including €7.3 billion of available and unused renewable credit lines.

Fiat Chrysler Automobiles capitalization for November

Capitalization of car manufacturers for November 2020

History

2024: Defective software found in 211,000 Dodge SUVs that cause brakes to fail

In mid-June 2024, the company Chrysler owned Stellantis recalled more than 211 thousand SUVs and pickups due to USA a malfunction software that can disable electronic brake systems. More. here

2022: Fine of $300 million for using software that underestimates the indicators of harmful emissions of cars

On May 25, 2022, the US division of Fiat Chrysler Automobiles reached a plea agreement to settle a multi-year criminal investigation on charges of falsifying the sustainability of diesel cars. It is known that the company used special software that underestimates the real picture with emissions.

The plea decision, agreed with representatives of the US Department of Justice, will include a guilty plea and a payment of about $300 million and should be made public in early June 2022, although the dates may move. The company will then allege its guilt during subsequent hearings in U.S. District Court.

The FCA, now part of Stellantis, agreed to plead guilty to criminal conspiracy charges stemming from its efforts to evade emissions requirements for more than 100,000 Ram pickup trucks and Jeep sports and utility cars.

Fiat will pay $300 million for the use of software that underestimates the indicators of harmful emissions of cars

A spokeswoman for Stellantis, formed by the merger of Fiat Chrysler and France's PSA Group, and the Justice Department declined to comment on the agreement.

One FCA officer is also preparing to appear in court accused of misleading regulators about pollution by cars targeted in the investigation. In 2021, the Justice Department indicted two other FCA employees for alleged emissions fraud.

The indictment alleges that those employees conspired to install false-acting devices on cars so they could cheat state emissions tests and then pollute air on roads beyond statutory regulations.

Fiat Chrysler in 2019 agreed to pay about $800 million in fines and other expenses to settle lawsuits filed by the United States and other countries in connection with violation of harmful emissions legislation. The first criminal charges were later filed in 2019 against then-senior engineer Fiat Chrysler, who was accused of conspiring with other employees of the company to mislead regulators and the public about pollution produced by cars.^[1]

2021

Resumption of Fiat car production in Russia

On July 20, 2021, it became known that Fiat production was resuming in Russia after a 10-year hiatus. Stellantis announced projects that will contribute to the implementation of the strategy for the systemic development of the production enterprise in the Kaluga Region (PSMA Rus), deepening localization and increasing the volume of local production. Read more here.

Completion of merger with Peugeot S.A.

On January 16, 2021, Groupe PSA announced that the merger deal between Peugeot S.A. ('Groupe PSA') and Fiat Chrysler Automobiles N.V. had been completed. Read more here.

2020: Creation of Stellantis with PSA Groupe

Fiat Chrysler Automobiles NV ("FCA") and Peugeot SA ("Groupe PSA") on September 29, 2020 announced the composition of the Board of Directors of Stellantis, the company that will be the result of the merger of the two enterprises. The completion of the merger will take place by the end of the first quarter of 2021, subject to the previously agreed closing conditions in the Merger Agreement. Read more here.

2014: Buy back stake in Chrysler from UAW Trust

In early 2014, the need for an IPO disappeared, as Fiat and the UAW Trust still managed to come to an agreement: on January 1, 2014, Fiat announced that it had agreed to buy back shares for $4.35 billion. Investors in the market appreciated the skill of Fiat managers quickly: in the very first minutes of trading on January 2, 2014 on the Milan stock exchange, the company's shares rose 15 percent^[2].

2011: Getting Control at Chrysler

Subsequently, the Italian manufacturer bought Chrysler shares in small stakes from the American and Canadian governments. Officially, control of Chrysler passed to Fiat in July 2011 - at that time the Italians owned 53.5 percent of the shares of the American company. By that time, another 41.5 percent had accumulated the pension fund of the UAW Retiree Medical Benefits Trust. In May of that year, Chrysler fully settled with the American government, which provided the concern with a total of $7.6 billion in financial assistance.

Not many believed in the success of the reorganization under the control of the Italians, but Marchionne did his job. Under his management (Fiat CEO headed including Chrysler), the American manufacturer began to produce really popular cars. Engineers from Fiat resolved technical flaws in Chrysler machines, changed the design and interior. At the end of 2012, the company's sales amounted to almost 2.4 million cars, exceeding the pre-crisis level. Moreover, Marchionna succeeded - as with Fiat - in making the company profitable again.

Finally, the Italians managed to conduct a competent advertising campaign, the result of which was a change in the attitude of Americans towards their own cars. An important role in this was played by a video featuring rapper Eminem, who was born and raised in Detroit.

Since 2011, when Fiat gained control of Chrysler, the Italians have been negotiating to buy out the remaining stake from the UAW Trust, but the parties could not agree on the price: the fund estimated the stake at ten billion dollars, while Fiat offered about four billion. Under a 2009 contract under which the fund and Chrysler bought back shares of the automaker, the UAW Trust had the right to demand an IPO (initial offering), which it did in 2013. As part of the placement of 16.6 percent of the shares, it was planned to establish the fair value of the securities.

2009: Investment in Chrysler

Fiat decided to invest in Chrysler's business in the second half of the 2000s. By that time, the Big Three company was not in the best condition. In 2007, the German concern Daimler-Benz AG, with which Chrysler merged in 1998, sold 80 percent of the latter to Cerberus Capital Management. The deal amounted to 7.4 billion, dollars while Daimler in the late 90s he paid $36 billion for Chrysler. The policy of the German concern eventually had an almost decisive impact on the state of Chrysler. Thus, Daimler did not pamper American factories with investments and reduced talented engineers, who, on the contrary, should be held with all their might. The new owner, who is not particularly versed in the auto business, could no longer fix the situation.

As a result, Chrysler's sales fell below the million-car mark in 2009. For comparison, in 2005 the figure was 2.3 million cars. The sharp deterioration of the situation in the company occurred against the background of the financial crisis of 2008, from which other American automakers, in particular General Motors, suffered.

In April 2009, Chrysler filed to begin bankruptcy proceedings under Article 11, which provides for protection from creditors and the restoration of the company. The situation at Chrysler was discussed at almost every meeting of the profile group of officials involved in the development of the US auto industry. In the end, it was decided to provide financial assistance to the company.

was preferable to invest six billion dollars in saving the company than several billion in its funeral," Steven Rattner explained the motivation of the country's authorities in his book on the actions of the US government during the crisis in the auto industry.

In fact, Chrysler was nationalized, and almost immediately after its rescue, the US authorities began to look for a buyer for a potentially valuable asset.

As a result, American officials decided on a deal with Fiat, which paid for its first stake in Chrysler not with money, but with technology and management experience. The Italians had an abundance of this experience: since 2004, Fiat has led (and continues to lead) Sergio Marchionne, who in the mid-2000s started a large reorganization in the company. Its consequences were even more active development in foreign markets and a drop in share in Europe, as well as the company's break even - Fiat at the end of 2005 made its first profit in 17 quarters.

1980s and 1990s: Alfa Romeo and Maserati takeover

In the mid-1980s, Fiat bought Alfa Romeo, in the mid-90s - Maserati.

In addition, Fiat began to actively develop factories outside the country (including in Latin America and Africa) and create joint ventures with other well-known companies. So, Fiat "made friends" with the Swedish Saab, creating a Saab-Lancia 600 car.

1970s: The start of the release of a "penny" in Russia and diversification

In 1970, the AvtoVAZ plant in Togliatti began work, where the first "penny" was released - the Russian version of Fiat 124.

By the late 70s, Fiat owned Alitalia, electronic equipment and typewriter firms, a construction company and other assets. Because of this diversity, car production was separated into a separate company.

1969: Takeover of Ferrari and Lancia

In 1969, Fiat acquired control at Ferrari and Lancia.

1967: Takeover of Italy's Autobianchi

New leadership methods quickly bore fruit. In 1967, Fiat carried out its first takeover, buying Italian automaker Autobianchi. The deal helped Fiat leapfrog Volkswagen's biggest European car rival. Even then, the press predicted that over time, the Italian company would be able to compete with the leaders of the world car market from Detroit: Ford, General Motors and Chrysler ("Big Three").

1963: Decentralization of Agnelli the Grandson

Relatives of the Fiat founder again took leadership positions in the company in 1963, when Giovanni's grandson, Gianni Agneli, first became chief manager, and three years later took over as president. Gianni, who ran Fiat until 1996, dramatically changed the company's management system. He abandoned the previous policy of centralized decision-making, which was effective before the war (except, of course, the costs of the type of strikes led by Palmiro Togliatti and Antonio Gramsci), but began to slow down the foreign development of Fiat in the 1960s.

1940s: Collaboration with Mussolini, removal of Agnelli Sr.

During World War II, Fiat worked for the regime of Benito Mussolini, and it is not surprising that after 1945, Agneli and his family were removed from the management of one of the largest Italian conglomerates.

Giovanni Agnelli\Photo: omniauto.it

1923

Fiata workers race on the roof of the company's first factory in Turin, Italy, in 1923.

1899: Founding of the Company

Fiat, almost from its very foundation - 1899 - has always been interested not only in the local market, but also in foreign markets. Already at the very beginning of the 20th century, Fiat, under the leadership of its founder and manager Giovanni Agneli, began exporting cars to the United States. A year before the revolution in the Russian Empire, the Italians built a factory and in Moscow, the Automobile Moscow Society managed to collect more than a thousand trucks before the Bolsheviks came to power.

Giovanni Anyeli understood the diversification of business not only as an increase in sales markets, but also as a variety of goods: if Fiat began as an automobile company, then quite soon it began to produce engines, military aircraft, and machine guns.