Fiat Chrysler Automobiles NV (NYSE:FCAU) has been mandated by US auto safety regulators to submit meeting details every month and to disclose as early as possible any potential car issues as the latter confirmed on Friday that the oversight on the company is extended for another year.
Fiat Chrysler Automobiles (FCA) reiterated that the extension of the monitoring has nothing to do with its performance over the year. The carmaker reassured that the move was made in pursuit for continuous communication.
Last year, FCA had been alleged of mishandling about two dozen recall campaigns involving 11 million vehicles. As a result, it has agreed in July 2015 with the US National Highway Traffic Safety Administration (NHTSA) to a $105-million settlement. An oversight by Rodney Slater, former US Transportation Secretary, was part of the settlement agreement.
Last December, the company has been fined $70 million by the NHTSA after it was found out that FCA had failed to report deaths and injuries resulting from car accidents since 2003. This is in violation of a law requiring carmakers’ disclosures of all deaths and injuries resulting from vehicular accidents.
Q2 Financial Highlights
FCA has issued its second quarter results last week, reporting a 2% year-over-year decline in net revenue to €27.90 billion.
During the release, the company has also announced a stronger financial guidance for the full-year 2016. The automaker has increased its full-year net revenue guidance to about €112 billion from approximately €110 billion and its full-year net profit to about €2 billion from approximately €1.90 billion.
The company reported a 4.80% year-over-year sales surge in July in Italy, outperforming the industry average growth of 2.90%. Year-to-date, about 343,000 units have already been sold in the country. All major FCA models are believed to have contributed in the impressive sales growth.
On the other hand, FCA US LLC also boasted a 0.30% year-over-year rise in July sales in the US to 180,727 units from 180,124 units.