Chrysler profits driven up by its trucks and Jeep

 
Adam Hignett
Fiat Chrysler’s US division has benefitted from economic growth
A JUMP in car sales lifted shares in Fiat Chrysler Automobiles yesterday as strong figures translated into increased profits at the motor manufacturer’s US division, FCA US.

The positive results for the year ending 31 December underlined a trend which has seen the company increase its market share in its key North American markets, driven by increased sales of its Jeep Cherokee and Ram pickups.

The company also benefited from increased demand for its products abroad, with worldwide shipments of vehicles totalling 2.9m, up 12 per cent on the year.

Net revenues at the company were $83bn (£54.8bn) for the year, up 15 percent from $72.1bn in 2013 while modified earnings before interest, tax, depreciation and amortisation (Ebitda) increased eight per cent over the same period to $6.4bn. Modified operating profit grew by 10 per cent to $3.5bn, up from $3.2bn a year earlier.

The company’s strong results were on the back of a series of awards for new models and accolades from the American auto press and saw the company record its best December sales in a decade, making it the 57th consecutive month of year-over-year sales gains.

The upbeat performance has continued into the new year with January sales increasing by 14 per cent in what is typically seen as a slow month.

It is not all positive, as on Monday the New York Times reported Fiat Chrysler would be recalling 228,000 Jeep Cherokees after an airbag glitch.

Shares in Chrysler closed up 3.3 per cent on Wall Street yesterday.