Fiat Chrysler CEO Sergio Marchionne says the company is more than half way to completing its goal of eliminating its significant debt.
Marchionne laid out plans to work toward eliminating FCA’s debt between 2014 and 2018. The automaker owed a reported $7 billion at the end of the third quarter of 2017, but after a strong performance in 2017, it has reduced its debt to $4.8 billion. In a conference addressing media announcing FCA’s 2016 sales results, Marchionne described the debt reduction plan as being ’60 percent’ complete.
FCA enjoyed a strong fiscal performance in 2016 with net profits of $1.8 billion on $6.5 billion earned, a large gain from the $93 million it earned in 2015. Its NAFTA region sales fell slightly at 2.6 million units, however FCA tacks this slight decrease up to the phase-out of the Chrysler 200 and Dodge Dart. Its U.S. market share stood flat at 12.6 percent.
FCA’s stock recently jumped amid rumors the automaker could spin off its Alfa Romeo or Maserati luxury brands to reduce its significant debt. Maserati, which has experienced a rise in sales following the introduction of its Levante crossover, could be worth as much as $4.8 billion. Marchionne has also pushed the idea of merging with another automaker to not only to level FCA’s debut but help reduce development costs.