MILAN (AP) - Fiat Chrysler Automobiles NV said Wednesday it swung to a net loss of 306 million euros ($339 million) in the third quarter as it recalculated the cost of a huge recall campaign in North America.
MILAN (AP) — Fiat Chrysler Automobiles NV said Wednesday it swung to a net loss of 306 million euros ($339 million) in the third quarter as it recalculated the cost of a huge recall campaign in North America.
Fiat Chrysler increased by 761 million euros the estimated cost of future recalls in the United States and Canada after revising its actuarial method. The mass-market carmaker, which is spinning off its sports car unit Ferrari, said the quarterly loss compared with a net profit of 174 million euros for the same period last year.
Fiat Chrysler has faced a tumultuous year of conflict with U.S. government regulators. The National Highway Traffic Safety Administration in July hit Chrysler with a record $105 million penalty for violating laws in 23 recalls involving 11 million vehicles. The company admitted it had failed to fully comply with recall rules.
On Tuesday, Fiat Chrysler announced the retirement of its safety chief.
Fiat Chrysler said its adjusted earnings before interest and taxes were up 35 percent to 1.3 billion euros in the quarter, a figure that excluded the costs of the future recall campaign.
Worldwide shipments were flat at 1.1 million units, despite a 27 percent increase in Jeep volumes. Net revenues rose 17 percent to 27.5 billion euros on strong results in North America and continued recovery in Europe.
Ferrari revenues rose 9 percent to 723 million euros on sales of the new 488 GTB and 458 Speciale A, which increased volumes.
Fiat Chrysler just completed a successful Wall Street listing of the northern Italy-based maker of luxury street cars and powerful Formula One racing machines, raising $982.4 million to help fund plans to ramp up production of higher margin Alfa Romeos for export from Italy along with Maseratis.
A second listing is expected in Milan early next year as Fiat Chrysler spins off Ferrari and distributes Ferrari shares to its stockholders.