FCA beats expectations with first-quarter earnings

Fiat Chrysler Automobiles earned an impressive $539 million (478 million euros) in the first quarter of 2016, a huge increase from $30.5 million (27 million euros) a year ago, for a company seen as somewhat financially desperate given efforts by its CEO to merge with another automaker.

FCA starts the year with a nicer dowry than expected courtesy of strong results in its two home markets: North
America and Europe.  Revenue increased 3% to $30 billion (27 billion euro). The first-quarter results, released today, exceeded Wall Street expectations.

What investors want to know now is what CEO Sergio Marchionne plans to do this year after he courted and was rebuffed by General Motors in his quest for a partner last year. He continues to seek a partner as he hones a product plan that is skewed towards crossovers in his belief they are hastening the demise of the car.

Marchionne said in January he does not see the value in building his own smaller cars and is talking with other automakers about having them build the Dodge Dart and Chrysler 200 in the future. It is the kind of decision that affects FCA’s manufacturing base in North America.

Last year details leaked about a massive upheaval in what products will be built where and the labor contract with the United Auto Workers reflected some of the intended moves, but workers still await full details of impacted plants. For example, the Dodge Journey was to share a platform and manufacturing base withe the 200 but those plans are on hold and the crossover will now extend its life on its current platform and continue to be built in Mexico, according to Automotive News.

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