Fiat Chrysler could lose $40 million weekly profit from strike: analyst

Tue Oct 6, 2015 2:25pm EDT
 
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DETROIT (Reuters) - Fiat Chrysler Automobiles NV (FCHA.MI: Quote) stands to lose $40 million of operating profit a week from a strike of its plants by the U.S. labor union United Auto Workers, said an analyst with the Center for Automotive Research.

Sean McAlinden, chief economist at the Ann Arbor, Michigan-based automobile industry consultancy, said the figure is based on the estimated per-vehicle profit of Fiat Chrysler autos sold in the U.S. market.

Labor costs have fallen to about 4 percent of the total price of a vehicle at Fiat Chrysler, down from 15 percent at Detroit automakers in the late 1990s, McAlinden said.

(Reporting by Bernie Woodall; Editing by Bernard Orr)

 
Fiat Chrysler Automobiles (FCA) CEO Sergio Marchionne attends a news conference   in Detroit, Michigan, September 15, 2015. REUTERS/Rebecca Cook