Apr 28, 2016 11:57 PM EDT
Fiat Chrysler Automobiles' Earnings For First Quarter Improved, Rugged Business Terrain Still A Threat

Fiat Chrysler Automobiles' have faced various hurdles regarding sales and product segments. However, the recent first quarter earnings report rendered positive improvements and here are the reasons why.

Fiat Chrysler Automobiles' is one of the oldest carmakers in the globe. Given the segments being distributed for many generations, Fiat Chrysler Automobiles' remained resilient and it has been displayed by the improved returns for 2016's first quarter earnings.

Fool reported that despite the controversies surrounding the company in terms of quality and safety, the consumers are still lured into the craftsmanship and legacy of Fiat Chrysler, in particular the Jeep segment franchise.

Records have shown that revenues were gained the highest from its hot-selling Jeep brand, and the Ram truck, leading to improved earnings for the quarter. However, on a different token, it is proven that the sales have improved based on the numbers but the company's overall debt is rising as well and the goals set forth by the company is not that easy to attain.

CEO Sergio Marchionne said, "It has gotten a lot stickier on the passenger car side. I think the call that we made to exit those businesses as producer in the United States in hindsight was probably one of the best calls we made."

On the bright side, the company did gain profitable first quarter returns but it did not pacify investors' apprehensions. Additional reports from WSJ mentioned that Fiat Chrysler is also talking with Google Alphabet regarding self-driving cars.

More information from Detroit News indicated that Google's partnership with Fiat Chrysler will boost both strengths and weakness of the two entities. If Fiat Chrysler is the smallest volume of the Big Three, but suddenly is paired with someone like a Google and their resources, it kind of immediately changes the playing field," said Kelley Blue Book senior analyst Karl Brauer. "Both of those companies jump to the front of the line."

As the company shifts to the production of SUVs and trucks as well as transforming its factories that are based US, it has been anticipated that it can boost the overall marketing hurdles of the firm. Also, other strategic approach that Fiat Chrysler will integrate is the expansion of its Maserati and Alfa Romeo and ultimately settles all the company's debts.

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