Fiat Chrysler hit by $670 mn charge for United States recalls

Although no injuries have been reported, the automaker believes one accident might have been caused by the axle shaft problems.

Most of the Ram pickups covered in the recall are located in North America, while others were in Canada, Mexico and outside the North American Free Trade Agreement (NAFTA) region. "I want to thank Scott for his leadership and commitment to the Company, where he has served in a variety of executive roles since joining in 1985", FCA CEO Sergio Marchionne said in a statement. That compares to a net profit of €188 million, or about $208 million, in the year-ago quarter.

GM, Nissan, and Fiat Chrysler have all issued recalls that could affect millions of vehicles. The company has a trailing twelve month EPS of N/A. The consensus analyst estimates according to First Call for the next quarter is 0.0000.

The US regulatory environment has become stricter since Mark Rosekind was appointed as NHTSA's administrator last December. Mr. Marchionne has also said Fiat Chrysler should make a large luxury S.U.V.to compete with the Range Rover from Jaguar Land Rover.

We have a reasonable chance to get at least a part of that market, Mr. Marchionne said, adding that cheap gasoline should encourage enough demand for such vehicles to accommodate new entries. Jeep shipments were up 27 percent.

The automaker also left its guidance for the year unchanged, saying it still expects to earn an adjusted net profit of $1.3 billion for the year and sell more than 4.8 million cars and trucks worldwide.

Fiat raised $982 million with the sale of a 10 percent stake in the supercar maker on October 21 and plans to distribute the remaining 80 percent to shareholders at the beginning of next year.