Fiat Chrysler shares plunge after poor results

May 07, 2014 - 1:35:32 pm

ROME: Shares in Italian-American auto giant Fiat Chrysler Automobiles were down more than 8.0 percent on Wednesday after the group announced losses of 319 million euros ($444 million) in the first quarter.

Stock in the company, which will take on its new name once the merger between Italy's Fiat and US brand Chrysler is completed, fell 8.32 percent by 0930 GMT on the Milan stock exchange in the first hours of trading.

The market overall was down 0.91 percent.

The results announced on Tuesday were mainly due to costs associated with Fiat's takeover of Chrysler.

With the European market in poor shape and the US market booming, Chrysler's sales and profits have been crucial to the results of its Italian parent.

Fiat Chrysler's chief executive Sergio Marchionne on Tuesday laid out ambitious plans including a revitalisation of the Alfa Romeo sports-car line and the doubling of Jeep sales, mainly in China.

Fiat completed its buyout of Chrysler in January although the union will not be completed until mid-2014. After that, the Dutch-registered company will list its shares on the New York Stock Exchange. (AFP)