Fiat Chrysler (FCAU) U.S. Auto Sales Rise, UAW Likely to Reject Contract
Shares of Fiat Chrysler Automobiles N.V. were trading up +0.08 or 0.61 percent to $13.29 in Thursday’s premarket after the company announced early this morning that its U.S. auto sales had increased 14 percent in September. Also in the news yesterday, employees represented by the United Auto Workers will most likely reject a new four year contract offered by the company. Fiat Chrysler stock closed at $13.21, up +1.00 or +8.19 percent in Wednesday’s regular trading session.
London, UK based Fiat Chrysler Automobiles was originally formed when Chrysler emerged from bankruptcy proceedings in 2009.
The company is the seventh largest automobile manufacturer in the world, selling vehicles under the Alfa Romeo, Fiat, Ferrari, Chrysler, Dodge, Jeep, Lancia and Mopar brands to name just a few. The company merged Fiat S.p.A. to form a Dutch based holding company headquartered in London in 2014 and its stock is dually listed on the New York Stock Exchange and the Borsa Italiana in Milan.
Fiat Chrysler reported sales of 193,019 units in the United States in September, an increase of +14 percent over the 169,890 units sold in the same period one year ago. The number was the best the company has seen for September since 2000 and marks the 66th consecutive month of year over year sales gains.
Reid Bigland, Fiat Chrysler’s Head of U.S. Sales said in the company’s press release that, “On the back of a strong sales industry we were able to achieve our best September sales in 15 years and our 66th-consecutive month of year-over-year sales growth,” he continued saying, “Last month's sales strength was broad based with five FCA vehicles setting September sales records and two others posting their best monthly sales ever.”
The seven Fiat Chrysler’s U.S. vehicles which set sales records in the month, included the Dodge Journey and Jeep Cherokee, which increased +45 and +38 percent respectively. The five cars recording their best September sales were the Dodge Challenger, Jeep Compass and Wrangler, the Chrysler 200 and the Ram ProMaster.
In related news, the U.S. United Auto Workers will most likely reject a four year contract offered by Fiat Chrysler that would increase wages for members and lessen the pay gap for second tier workers. The agreement was reached on September 16th and so far, two thirds of the roughly company’s 40,000 employees have already voted on the contract with few workers approving the deal, according to a Detroit Free Press analysis published on Wednesday.
The UAW expects to leverage its position rejecting the agreement to get more lucrative deals from General Motors (GM) and Ford (F) which are also at the negotiating table for contracts. Fiat Chrysler stock has traded in a limited range for most of 2015, but has appreciated significantly since trading under $9 per share one year ago.
Other News About FCAU
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