Fiat Chrysler workers to get $5,500 bonuses
DETROIT – Fiat Chrysler Automobiles on Thursday said U.S. hourly workers would get profit-sharing checks averaging $5,500 after the company’s profit nearly doubled in 2017.
The checks reflect another bonanza year for the U.S. auto industry. While industry sales were down slightly, they still topped 17 million, just off the record.
Besides Fiat Chrysler, Ford said it will be handing out $7,500 profit-sharing checks for an estimated 54,000 hourly unionized workers.
Fiat Chrysler reported a full-year net profit of $4.4 billion, up about 93% from 2016. The profit-sharing payments are an increase over the $5,000 checks released for 2016.
All three traditional Detroit automakers give their U.S. hourly workers annual bonuses tied to profits.
About 40,000 United Auto Workersrepresented Fiat Chrysler employees will receive their checks Feb. 16. That money is in addition to the $2,000 bonuses Fiat Chrysler announced when the company said this month it would be shifting production of Ram heavy- duty pickups from Mexico to the Warren, Mich., truck plant in 2020.
The company highlighted a strong performance in North America, Latin America and Europe as well as improvements in its components divisions and in its Maserati brand.
The company also nearly doubled its fourth-quarter net income.
FCA reported improvements in its pretax profits across all regions in 2017, including $6.49 billion in North America. Improvements came despite a U.S. sales drop of 8% for the year to 2.1 million vehicles. The company has attributed that decline primarily to reductions in sales to lower-margin rental fleets.
Edmunds.com analysts noted that the company had a challenging year, dropping “nearly a full percent of market share in 2017” and with incentives up 18% but that new products could improve its outlook for 2018.
“Considering the strength of the Jeep brand and the incessant consumer demand for SUVs, FCA does have some of the right building blocks for success,” Edmunds analyst Jessica Caldwell said.
“Considering the strength of the Jeep brand and the incessant consumer demand for SUVs, FCA does have some of the right building blocks for success.” Jessica Caldwell Edmunds analyst