Fiat Chrysler Automobiles NV announced that their profit in the first quarter of 2015 went up 22% due to a revived European market, a strong dollar value and an increase in the U.S. demand for Ram pickups and Jeep sport utility vehicles.
The London-based company stated on Wednesday that earnings before interest and taxes increased to 800 million Euros from 655 million Euros in 2014 and that its revenue rose 19% up to 26.4 billion Euros.
Lately FCA’s CEO, Sergio Marchionne has been urging the auto industry to consolidate as a means to increase profitabiliyy, but other automakers have yet to jump at that since booming sales in the U.S. and Europe are not putting too much pressure as to resort to restructuring. Marchionned has provided his view on “industry capital optimization” on a conference call with analysts that has taken place this week, conference which was not about the sale of the automaker or any changes in its five-year plan.
The FCA shares have gained throughout this year 41% and the company’s European business turned a profit for the second consecutive quarter with help from introducing the Jeep Renegade and the Fiat 500X models, both being built at the carmaker’s Melfi factory in Italy.
A market strategist at IG Markets in Milan stated that “Results in Europe are clearly positive and better than expected.” The North American earnings grew a massive 58% compared to last year up to 601 million euros, which makes up for a grand loss of 65 million euros reported in Latin America sales.
By Gabriela Florea