Financial News

  • 13 May 2014, 12:03

Chrysler Loses $7m A Day In Fiat Merger

US car giant Chrysler lost more than $7m every day during the first quarter, amid ongoing costs for its merger with Italy's Fiat.

Chrysler said it was hit with a loss of $690m (410m) in the three months to the end of March, due to charges related to Fiat taking a controlling stake.

Fiat spent $3.65bn (2.15bn) for Chrysler's remaining shares in January, and the US firm said it would outlay $700m (415m) to upgrade factories.

In addition to a $672m (400m) first quarter charge to meet those promises, Chrysler suffered from other commitments and also booked a $540m (320m) non-cash loss debt write-off.

Chrysler said without the exceptional items it would have made a pre-tax profit of $486m (290m).

That would have been more than double the $166m it earned in the same period last year.

Revenue in the first quarter of this year was up 23%, to $19bn (11.2bn), compared to the 2013 figure.

It said worldwide vehicle sales were up 10% in the quarter, to 621,000, against those made in the same period last year.

Chrysler said it also saw strong sales of the new Jeep Cherokee SUV and Ram pickup.

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