Diesel emissions cost estimate of $812M dings Fiat Chrysler profits

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Fiat Chrysler Automobiles
Fiat Chrysler Automobiles admitted having made a net profit of $642 million in net profit which was recorded in the first quarter. Notably, this is after the former CEO Sergio Marchionne died. However, this profit had reduced in comparison to the previous profit made by the previous CEO. The company did not acknowledge the drop and claimed that it was due to the diesel scandal in the US. Essentially, the company made good profits during the former CEO Sergio Marchionne before he died. With the coming of the new CEO Mike Manley, there was a decline in profit and was claimed on the diesel scandal.
During the third quarter under the new CEO, it was reported that the future of the company was becoming clearer. Indeed, this was after it made $2.28 billion without taxes and interest (Lawrence n.d). Notably, this was a 13% increase compared to the same period in the previous year. Primarily, this increase was due to the high sales of Jeep and Ram in North America. Further, the pretax was up by 51% for the quarter as compared to the previous year 2017. After the death of Sergio, Manley came up with several strategies to manage the company for effective profit provision. Indeed, the results can be seen as a success such as securing a deal to sell FCA’s Magneti Marelli components operations for more than $7 billion (Lawrence n.d). The plan was that the sales need to allow for a payout of $2.28 billion to shareholders for the following year.

Further, at the beginning of an annual dividend of 20% of earnings.
I agree with the stance in which the company is taking. Indeed, this is because, with the management under Manley, he has proved that he can deliver in his plans and strategies. Further, the company’s management has created trust among the shareholders, and they have been loyal to the organization and thus can support it in case there exists a significant deterioration.
I think that the outcome of the event of the updated products such as the new Jeep Wrangler and Ram 1500 will improve the income levels of the employees. On the part of clients, the company will have satisfied the customer’s needs. Further, the business environment will be enhanced in that the company will bring a positive competition on the products produced by the manufacturers. The event will impact the company positively by increasing the number of sells during the following year thus making significant profits.

Works Cited
Lawrence, Eric D. “Diesel Emissions Cost Estimate of $812M Dings Fiat Chrysler Profits.” Detroit Free Press, 30 Oct. 2018, www.freep.com/story/money/cars/chrysler/2018/10/30/fiat-chrysler-diesel-profits-marchionne/1815936002/.