Merger With Fiat Suppresses Earnings

In a report of first quarter earnings, Chrysler Group is posting a net loss of $690-million, mostly related to its merger with Fiat.

The company paid out $672-million in UAW retirement medical benefits as per a memorandum of understanding with the union. As part of its deal with Fiat, Chrysler agreed to pay $700-million to upgrade factories.

Net revenue rose 23% to $19-billion over the first quarter of last year, while net industrial debt fell to $551-million from $619-million during the same period of 2013.

Worldwide vehicle shipments increased 16% while sales rose 10%, driven by a 19% increase in sales in the U.S. Market share in the U.S. rose to 12.5% up from 11.4%, while Canadian market share rose to 16.6%.