Fiat Chrysler, PSA profits dropped in pandemic before merger

MILAN (AP) — Fiat Chrysler Automobiles and PSA Peugeot yesterday reported their last financial statements as independent companies, each contributing full-year profits of around EUR2 billion to the new company, Stellantis, formed in January.

Fiat Chrysler reported adjusted net profits in the pandemic year of EUR1.9 billion, down 57 per cent from 2019. PSA reported earnings of EUR2.2 billion, a drop of 32 per cent.

The Italian-American carmaker and the French mass-market automotive company completed their merger on January 16, creating Stellantis, the world’s fourth- largest carmaker. Fiat Chrysler reported fourth-quarter adjusted earnings before interest and taxes of EUR2.3 billion, a record EUR2.2 billion of those generated in North America. Maserati made a positive contribution for the first time in nearly three years.

The French mass carmaker said second-half operating margins hit 9.4 per cent at record levels.

“These figures demonstrate the financial soundness of Stellantis, bringing together two healthy companies,” Stellantis CEO Carlos Tavares said in a statement.

CEO of Stellantis, the carmaker created from the merger of PSA Peugeot and Fiat Chrysler, said the tie-up will help preserve jobs, factories and the 14 storied brands as billions in annual savings are achieved. PHOTO: AP