Fiat Chrysler reports Q1 profit fall, progress in restructuring China joint ventures

CHICAGO - Fiat Chrysler Automobiles (FCA) suffered a 47 percent fall in its first quarter net profit amid decreased sales globally, the Italian-American automaker reported on Friday.

FCA's Q1 net profit was 508 million euros, or $568 million, with its worldwide combined shipments down 14 percent to 1,037,000 vehicles.

The slowdown in delivery was primarily due to "non-repeat of overlapping all-new and prior generation Jeep Wrangler production and planned realignment of commercial strategies in Europe," said the automaker.

The combined shipments in Asia Pacific region were down 30 percent, primarily in China.

FCA said that several steps were taken to strengthen its business in Q1, including the successful negotiation of a labor agreement in Italy, continued implementation of cost-containment actions in all regions, and progress towards a restructure of its joint ventures in China.

FCA and GAC (Guangzhou Automobile Group) have recently announced changes to the organizational structure of their joint ventures in China. They have agreed to merge GAC Fiat Chrysler Automobiles Company and GAC Fiat Chrysler Automobiles Sales Company into one, effective on May 1, 2019.

They hope that the streamlined management "will accelerate the integration of industrial and commercial operations, more rapidly respond to changes in the Chinese market environment and enable delivery of even more competitive products and services to its customers," said FCA.