2. FCA- Who are we?
Fiat Chrysler Automobiles, FCA, is a
multinational corporation, being one of the
top ten world’s largest automobile
producers.
FCA designs, engineers, sells, distributes, and
services multiple well known automotive brands,
in over 100 manufacturing facilities. According to
their website, they also sell their vehicles, and
related products, to dealers and distributors in
more than 130 countries.
“The 39% drop compared with April, May and
June 2019 meant 367,086 vehicles sold, down
from 597,685.” -Detroit Free Press
3. COVID-19 IMPACT
COVID-19 has left an impact on every organization, large or small. When looking at FCA specifically we see that the
main issue has been their sale numbers. While the impact of the virus has had a major impact on the
organizations sales, there has been a large impact on their employees and customers as well.
FCA’s Sales-
● Down 39% in second quarter sales for 2020 compared to second quarter 2019
● This carnage was distributed among each brand and model
● Fleet sales went down as customers delayed or canceled orders
It is important to look at why FCA’s sales went down so much compared to second quarter 2019 and second
quarter 2020. We know that COVID-19 struck, but why did it have an effect on their sales? The answer is:
● Leadership- make the decision to shut down sites
● Customers- could not/ can no longer purchase vehicles
● Employees- working conditions after COVID-19 effect can affect FCA’s overall productivity.
Sales decreasing is a concern on the Organization as a whole because it affects its employees hours,
wages, and potential of losing their job.
4. CURRENT OUTCOME
Employees Customers Leaders Others
● Reduced hours
● Decrease in
wages
● No fleet orders
● Working
remotely
● Closed plants
● Unemployed
● Decrease in wages
● Postponed sales
● Competitors
Advantage
● Customer loyalty
● Organizational
commitment
● Forced to make
difficult decisions
● Auto Industry- not the
only Organization
affected by decrease
in sales due to COVID
5. FCA ACTIONS
● Fiat Chrysler utilized different techniques such
as seven-year, no-interest loans and various
programs allowing customers to buy vehicles
online.
● Chrysler’s "Drive Forward" marketing program
enabled consumers to buy vehicles off dealer
lots, trade in their old vehicle and apply for car
loans.
● Chrysler announced that about 20% of new
sales are coming from online compared to the
1% in 2019.
● Fiat Chrysler prioritized vehicle deliveries to
retail customers as fleeting sales were down. As
a result, this created a strong comeback for
fleet order books.
6. RELATING IT BACK
TO THE TEXT
Organizational Commitment- FCA made it priority to out their customers before themselves by taking pay cuts and
when production and sales opened back up customers came first when ordering their vehicles.
● Affective commitment- want to keep their relationships with their loyal customers
● Continuance commitment- while some employees might be mad about a pay cut, they know that with COVID-
19 they probably wouldn’t find a better paying job. They are there because they need to be to pay the bills.
Job Satisfaction- Executives, designers, engineers, etc. have been forced to work from home and don’t know when
they will return to their buildings.
● Affective Events Theory- What was the change in behaviors and attitudes in employees? From the CEO down
to white collar workers. It could be the stress of financial stability, the stress of not having the technology at
home to complete work efficiently, etc.
Stress- How are employees handling the pandemic?
● Cognitive coping- What are employees doing to seek help through this time?
● Emotion focused coping- Are the employees handling it in a way that won’t affect those around them in a
negative way?
● Work Hindrance Stressors- How is the employee going to get work done without proper technology?
○ Ex: Designer working from home who doesn’t have his proper computer and software
● Non-work Hindrance Stressors- How is the employee going to provide for its family?
○ Ex: They rely on this job to feed their family and keep a roof over their head
