Fiat Chrysler Automobiles NV (NYSE:FCAU) recently revealed that it has maintained a strong momentum in North America that allowed it to overcome the automotive sales slowdown.
Numerous automotive manufacturers continue to experience a slowdown in sales but Fiat Chrysler continues to maintain a strong momentum. Its CEO Mike Manley announced on Wednesday that it experienced strong sales in the first half of the year especially in North America and South America. He also added that it is full steam ahead as it enters the second half with the strong momentum it demonstrated in the first half.
Manley attributes his company’s strong performance in the first half of 2019 to the strong sales that its RAM brand experienced especially in North America. The Fiat Chrysler CEO made the statements through the company’s second-quarter earnings report. He also noted that the company anticipates pricing pressure from the Chinese market in Q3.
Fiat Chrysler’s strong growth in Q1 2019 and expectations for H2 2019
Fiat Chrysler’s adjusted EBIT margin demonstrated an uptick from 6.5% to 8.9% in the U.S in Q1 2019. The strong figures reported from the Latin America market also contributed to a strong performance outlook that the company set for the second half of 2019. The automotive manufacturer also reported positive margins from Africa, the Middle East and the European markets in the latest quarter which was a massive improvement from Q1 2019.
Fiat Chrysler also announced that it will continue to invest heavily in its business segments that are currently underperforming, including its Maserati brand. The company also plans to carry out restructuring in Africa, the Middle East, and Europe to strengthen its presence in those regions. It also intends to incorporate better management and more effective marketing strategies to grow its brands and boost performance.
Manley previously noted that he expects the company to achieve profitability in Europe with margins averaging 3% before the end of this year. Fiat Chrysler also plans to sell electric vehicles such as the 500 mini electric and hybrid versions of Maserati and Jeep SUVs. However, the electric and hybrid models will be available from next year.