FCA

(28.54% stake, 41.40% of voting rights on issued capital)

The key consolidated data of FCA for 2020 are as presented below:



 YearChange
€ million20202019amount%
Net revenues86,676108,187(21,551)(19.9)
Adjusted EBIT(1)3,7426,668(2,926)(43.9)
Net profit from continuing operations242,700(2,676)n.s
Net profit (including discontinued operations)246,630(6,606)n.s.
(1) Adjusted EBIT is a non-GAAP financial measure used to measure performance. Adjusted EBIT excludes certain adjustments from Net profit from continuing operations, including: gains/(losses) on the disposal of investments, restructuring, impairments, asset write-offs and unusual income/(expenses) that are considered rare or discrete events that are infrequent in nature, and also excludes Net financial expenses and Tax expense/(benefit).

COVID-19

During the first half of 2020, the COVID-19 virus spread worldwide and was declared a pandemic by the World Health Organization on 11 March 2020. In response, many governments in affected jurisdictions imposed travel bans, quarantines and other emergency public safety measures. For example, governments imposed restrictions on travel and the movement and gathering of people, as well as restrictions on economic activity.

As the severity of the COVID-19 pandemic became apparent, FCA leadership took actions to protect its employees and communities, as well as strengthen FCA’s financial position and limit the impact on FCA’s financial performance.

FCA implemented a temporary suspension of production across its facilities: in APAC starting with China on 23 January 2020; in EMEA, starting with Italy from 11 March 2020; in Maserati beginning 12 March 2020; in North America starting progressively from 18 March 2020; and in LATAM on 23 March 2020. FCA also implemented remote working arrangements, where feasible, across all regions at various stages during the first quarter and has restricted both domestic and international business travel since late February 2020. These arrangements were structured to ensure continuation of critical activities, including, but not limited to, appropriate functioning of FCA’s internal controls and financial reporting systems and processes.

FCA worked closely with all relevant stakeholders, including unions and dealer representatives, to develop and implement plans to restart production and vehicle sales once governments in various jurisdictions permitted, including the development of enhanced sanitizing and health and safety procedures. On 19 February 2020 and 24 February 2020, production restarted at the GAC Fiat Chrysler Automobiles Co. joint venture plants in Guangzhou and Changsha, China, respectively. Production restarted in all North American plants by 1 June 2020; in India on 18 May 2020; Latin America by 20 May 2020; on 27 April 2020 production restarted at the Sevel joint operation in Atessa, Italy, increasing progressively at other plants in the EMEA region and achieving pre-COVID shift patterns during the third quarter. Return to work procedures for offices and other facilities were also phased in with continued widespread use of remote working practices.

During 2020, FCA management took several key actions to secure its liquidity and financial position, including drawing on existing bilateral lines of credit totaling €1.5 billion and securing an additional incremental bridge credit facility of €3.5 billion, structured as a bridge to capital markets, which was available to be drawn beginning in April and then replaced as noted below. In addition, measures were taken to reduce cash outflows, including: a temporary suspension of a significant number of capital expenditure programs, with no programs cancelled; delaying non-essential spending; temporary lay-offs, salary cuts and deferrals; and significant reductions to marketing and other discretionary spend. On 21 April 2020, FCA drew down its €6.25 billion syndicated revolving credit facility, which was then subsequently repaid by 31 December 2020.

On 24 June 2020, FCA Group announced that FCA Italy S.p.A., a wholly owned subsidiary of Fiat Chrysler Automobiles N.V., and other Italian companies in the FCA Group had signed a 3-year, €6.3 billion credit facility with Intesa Sanpaolo, Italy’s largest banking group. On 1 July 2020, the FCA Group confirmed pricing of an offering of €3.5 billion of notes under the Medium Term Note Programme, with settlement on 7 July 2020. The offering comprised (i) €1.25 billion in principal amount of 3.375% notes due July 2023, (ii) €1.25 billion in principal amount of 3.875% notes due January 2026, and (iii) €1.0 billion in principal amount of 4.500% notes due July 2028, each at an issue price of 100% of the applicable principal amount. The issuance replaced in full the €3.5 billion bridge credit facility above, which was fully cancelled on 7 July 2020, in connection with the settlement of the notes offering. Additionally, on 18 September 2020, FCA announced that it had entered into an agreement for a €485 million five-year loan with the European Investment Bank (“EIB”) to support production of plug-in hybrid electric (“PHEV”) vehicles, which is in addition to the €300 million facility entered into in March 2020 before the COVID-19 pandemic.

FCA also took actions to support the wider community in the countries in which it operates, including: producing protective masks for healthcare workers and first responders, with over one million shipped worldwide during the first quarter and one hundred million produced in Italy by September; in North America and EMEA working with medical equipment manufacturers to support production of ventilators, other medical equipment and personal protective equipment, such as Siare Engineering International Group (Bologna, Italy); in APAC the FCA Group donated personal protective equipment and vehicles; Maserati provided funding scholarships at medical schools; in LATAM, FCA worked on the creation of two makeshift field hospitals close to our plants in Brazil, with a further 100-bed facility constructed in Argentina, as well as the production of face shields, vehicle fleet support and engineering, and production assistance for the manufacturing and servicing of ventilators.

On 18 March 2020, due to the continued uncertainty of market conditions and regional operating restrictions related to the evolving COVID-19 pandemic, FCA withdrew its FY 2020 Guidance. On 3 April 2020, FCA announced that the Annual General Meeting of shareholders (“AGM”) scheduled for 16 April 2020 would be postponed to late June 2020, including the postponement of the resolution on the proposed 2019 €1.1 billion ordinary dividend. Further to the planned 50/50 merger of their businesses announced in December 2019, on 13 May 2020, the board of directors of Fiat Chrysler Automobiles N.V. and the managing board of Peugeot S.A. announced the decision by each company to not distribute an ordinary dividend in 2020 related to financial year 2019, in light of the impact from the COVID-19 crisis. The postponed AGM was held on 26 June 2020.

Net revenues and Adjusted EBIT

Net revenues Adjusted EBIT
Years anded 31 December Years ended 31 December
20202019€ million20202019
60,32273,357North America5,3516,690
2,3812,814APAC(116)501
16,28420,571EMEA(918)(36)
5,3058,461LATAM6(6)
1,3841,603Maserati(232)(199)
1,0001,381Other activities, unallocated items and adjustments(349)(282)
86,676108,187Total 3,7426,668

NORTH AMERICA

The decrease in Net revenues in 2020 compared to 2019 was primarily due to lower shipments and negative foreign exchange translation impacts, partially offset by positive model and channel mix, as well as favorable net pricing.

The decrease in Adjusted EBIT in 2020 compared to 2019 was primarily attributable to lower volumes, recall campaign costs as well as higher compliance costs driven by non-repeat of prior year benefit due to the CAFE fine rate reduction in the U.S. on MY2019 vehicles sold in prior periods, partially offset by purchasing savings, included within Industrial costs and negative foreign exchange translation impacts. These were partially offset by positive net pricing; favorable model and channel mix; and reduced advertising expense and cost efficiency actions.

LATAM

The decrease in Net revenues in 2020 compared to 2019 was primarily due to lower shipments and negative foreign exchange translation effects from the weakening of the Brazilian Real, as well as unfavorable mix and non-repeat of prior year one-off recognition of credits related to indirect taxes.

The decrease in Adjusted EBIT in 2020 compared to 2019 was primarily attributable to lower volumes; and product cost inflation and negative foreign exchange transaction effects, included within Industrial costs above. These were partially offset by reduced advertising and general and administrative costs.

APAC

The decrease in Net revenues in 2020 compared to 2019 was primarily due to lower shipments, lower component sales to the GAC FCA JV and negative foreign exchange translation effects.

The decrease in Adjusted EBIT in 2020 compared to 2019 was primarily attributable to lower Net revenues, and lower GAC FCA JV results, included within Other. These were partially offset by reduced marketing expense and general and administrative costs.

EMEA

The decrease in Net revenues in 2020 compared to 2019 was primarily attributable to lower volumes of vehicles and spare parts, partially offset by favorable model mix and positive net pricing.

The decrease in Adjusted EBIT in 2020 compared to 2019 was primarily attributable to lower volumes, less favorable overall mix and higher compliance and product electrification costs, included within Industrial costs above. These were partially offset by positive net pricing, primarily related to newly-launched electrified vehicles, lower fixed costs from cost containment and restructuring actions implemented in prior periods and reduced marketing costs.

Maserati

The decrease in Net revenues in 2020 compared to 2019 was primarily due to lower shipments.

The decrease in Adjusted EBIT in 2020 compared to 2019 was primarily due to lower volumes and higher marketing costs to support the new brand strategy partially offset by lower depreciation and amortization.

The following table is the reconciliation of Net profit from continuing operations to Adjusted EBIT (non-GAAP measure).

€ million20202019
Net profit from continuing operations242,700
Tax expense1,3321,321
Net financial expenses9881,005
Adjustments:  
Impairment expense and supplier obligations (1)9271,542
Provision for U.S. investigations matters (2)222-
Restructuring costs, net of reversals73154 
Gains on disposal of investments(4)(15)
Brazilian indirect tax - reversal of liability/recognition of credits-(164)
Other (3)180125
Total adjustments3,1781,642
Adjusted EBIT3,7426,668
(1) Impairment expense recognized in Maserati, EMEA, LATAM in Q1, EMEA in Q3 and North America in Q4 2020. (2) Provision recognized for estimated probable loss to settle matters under investigation, primarily associated with U.S. diesel emissions. (3) Primarily related to costs incurred for the FCA-PSA merger and for litigation proceedings.

Cash flows from operating activities to Industrial free cash flows

(€ million)FY 2020FY 2019
Cash flows from operating activities9,18310,462
Less cash flows from operating activities - discontinued operations-(308)
Cash flows operating activities - continuing operations9,18310,770
Less: operating activities not attributable to industrial activities2974
Less: Capital expenditures for industrial activities8,5988,383
Add: Net intercompany payments between continuing operations and discontinued operations-(200)
Add: Discretionary pension contribution, net of tax68-
Industrial free cash flows6242,113

2021 Outlook 

2021 Industry Outlook (2): North America +8%, South America +20%, Europe +10%, Middle East & Africa +3%, India & Asia Pacific +3% and China +5%.

2021 Guidance (3): Adjusted Operating Income Margin of 5.5 - 7.5%; assumes no significant COVID-19 related lockdowns.

 

Commercial Register No.64236277 Legal notes | Credits