US: Fiat Chrysler uses smart pricing to lower gap with rivals - INAUTONEWS
Fiat Chrysler Automobiles, the third largest US automaker and the world’s seventh biggest, is lifting earnings margins by delivering more vehicles from hot brands such as the Ram, Jeep and Hellcat and also lowering dealer incentives. During the past quarter the carmaker earned an operating profit of $1. 4 billion in North America, while Ford took home $2. 6 billion and General Motors another $2. 8 billion. An automaker with low profit margins will be less interesting to Wall Street investors and have smaller stock prices that yield lower investments. But this year, industry experts and analysts hint that strong demand for certain models, such as the Ram 1500 Laramie Limited and its Dodge Challenger and Charger Hellcats, along with the usual hike in Jeep deliveries have finally lifted average... Marchionne also managed to deliver on the company’s profit margin goal – jumping from 4. 9 percent last year during the time frame to 7. 7 percent in the second quarter. Source: www.inautonews.com
