Ram and Jeep Drive the Profits for FCA

Ram and Jeep Drive the Profits for FCA

The brands that carried the water for FCA in North America are easy to see as Jeep and Ram are the ones that show the most sales and profits.

It shouldn’t come as any surprise that the profits earned by FCA were driven by two specific brands. FCA has spent the last few years trimming the fat out of its lineup only to give us more muscle at the top of the brands that we love. Considering the small number of models for Chrysler, Dodge, Alfa Romeo, and Fiat, this shouldn’t come as any surprise at all, but you might be impressed to see which models drove the sales and by how much.

An Astronomical Increase for FCA

The fourth-quarter profits for FCA in North America rose by 61 percent. These profits were driven by the all-new Ram 1500 and the Jeep Wrangler. The addition of the latest technology into the new Ram 1500 makes it one of the most desirable choices on the market and the fact that Ram continues to offer the previous model as the Ram 1500 Classic, adds to the impressive numbers. The JeepWrangler is in its second year as a new model and it continues to be one of the most desirable vehicles on the market.

Speaking FCA Numbers in Euros

The reported quarterly net profits for FCA as a whole was 1.29 billion euros. This number when compared to 2017 when the company has profits of 804 million euros was an impressive increase in one year for a single quarter. Revenues also rose to an impressive level with a six percent increase to total revenue for the quarter of 30.6 billion euros. In North America, the profits grew by 19 percent to 6.2 billion euros for the brand during the entire previous year, which accounts for the lion’s share of the global profits.

FCA isn’t Profitable Everywhere

Although FCA has found a serious level of success in North America, it hasn’t had the same success in Asia. In this market, FCA reported a loss due to the market weakness in China where there’s more competition for the core SUV market. Europe is another area where the company lost ground with profits dropping by 44 percent but when we look at Latin America, the profits more the doubled what the company experienced the previous year. This means the American market is the strongest for the FCA brands.

More Success Means more Profits for FCA Workers

This increase in the profits earned by FCA is translated to an increase in the profit-sharing checks that will be received by the 44,000 unionized US auto workers. These auto workers will each receive a check for $6,000 which is $500 more than what they received after the 2017 calendar year. This sharing of profits will hopefully spell a continuation of success that can be enjoyed for many years to come by all auto workers at the various FCA locations. This success also shows that FCA made the right choice in placing its focus on trucks and SUVs over the past several years.

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