Fiat, which controls Chrysler, has posted a wider first-quarter loss in Europe after sales in the region plunged but was propped up by the US unit.
The loss before interest, taxes and one-time items in Europe nearly doubled to EUR207m (US$274million), Bloomberg News reported, noting that the shares fell as much as 5.7%.
Without Chrysler, Fiat would have reported a EUR6m trading loss in the period as the sovereign debt crisis and a lack of new models hit demand. Fiat’s deliveries in the region tumbled 20% in the first quarter, outpacing the industrywide 7.3% drop.
The loss in Europe “is not good and indicative of just how difficult it is to operate in the euro zone,” David Arnold, a sales specialist at Credit Suisse Group in London, told Bloomberg.
First-quarter trading profit more than tripled to EUR866m from EUR251m a year earlier on demand for Chrysler 200 and 300 sedans in the US. Revenue more than doubled to EUR20.2bn.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData