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Fiat Chrysler Loses $1.24 Billion in Pandemic Stricken Second Quarter

» Posted August 28, 2020Resources | Share This Post

The coronavirus pandemic has not been kind to many of the auto industry’s biggest players. As the healthcare crisis and economic downturn continue, many of the world’s top car manufacturers are wondering when buyers will come back.

Fiat Chrysler posted a $1.24 billion loss in the second quarter, according to the Detroit Free Press. That is a 232 percent drop around the globe, compared to the same three-month stretch a year earlier.

Still, FCA Chief Executive Officer Mike Manley said things could have been a whole lot worse. He credited making serious moves, like a 20 percent salary deferral for employees, for staving off further devastation.

“Our second quarter showed that decisive actions and extraordinary contributions from our workforce enabled FCA to contain the impact of the COVID-19 crisis,” Manley said in a prepared statement announcing the quarterly data. “While the company remains vigilant about the health and safety of employees, our plants are up and running, dealers are selling in showrooms and online, and we have the flexibility and financial strength to push ahead with our plans."

Fiat Chrysler is not alone. General Motors posted an $800 million loss for the quarter, while Ford said sales decreased by one-third from March to June.

Recalls, Safety Issues, Legal Protections

While FCA is still reeling from a sluggish second quarter, the company and other large automakers continue to also have trouble ensuring that the vehicles they put on the road are safe.

In July, for example, Fiat Chrysler announced that it was recalling some 900,000 cars because of defective airbag covers the company said could cause accidents and injuries. In 2018, the company recalled roughly 4.8 million cars in the U.S. alone, citing a defect that could prevent drivers from turning off cruise control once engaged.

The good news is that California’s lemon law provides some important legal protections for car owners in the Golden State. 

The Song-Beverly Consumer Warranty Act requires car manufacturers to make certain repairs to vehicles while they are under warranty. It also forces the manufacturer to buy back or replace vehicles that the company is unwilling or unable to fix. The law obligates the manufacturer to pick up the tab of any legal fees that an owner incurs enforcing his or her rights.

How a California Lemon Law Attorney Can Help You

At the Bickel Law Firm, California lemon law attorney Brian Bickel and his team have represented hundreds of clients in defective vehicle cases in Southern California and across the state. We work tirelessly to get the people we represent the compensation they deserve.

Our offices are conveniently located in Los Angeles, San Diego and San Francisco.  Call us at (888) 800-1983 or contact us online to speak with a California lemon law attorney today.

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Posted By: Clay Coker