Fiat Chrysler Automobiles expects to turn profits in all regions this year but needs to make more in North America to fund Alfa Romeo and Maserati brand overhauls.
The automaker has announced 2014 results in line with its own forecasts and above analysts’ expectations.
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A Reuters report noted that FCA booked a profit in Europe in the fourth quarter for the first time since 2007 after retooling shuttered factories in Italy to export the Jeep Renegade and other vehicles to the United States while getting a boost from the slump of the euro against the dollar.
“In 2015 … we should see black numbers across all regions,” chief executive Sergio Marchionne reportedly told investors during a conference call. Europe should see a recovery this year, he said, but cautioned: “I’m not opening any bottles of champagne.”
FCA will spend EUR9.5bn (US$10.77bn) developing new Maserati, Alfa Romeo and Jeep models.
Sales of Jeeps and Ram trucks accounted for just over half of the company’s overall profits and revenues last year, helping to offset falls in Latin America and weakness in Europe.
Reuters noted that FCA’s 4% operating profit margins in North America lag Ford and General Motors Co. (GM.N) and have been under pressure in recent quarters but cited FCA finance chief Richard Palmer as saying margins should improve in 2015 due to lower expected recall costs and a more stable cost base than in the past five years.
FCA also will spend less launching new models in North America, the report added.
