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Fiat Chrysler's Q3 profit boosted by strong North American earnings

MILAN, Italy — Fiat Chrysler Automobiles (FCA) reported a 17 percent jump in third-quarter adjusted operating profit on Tuesday, helped by a strong performance in its key North American market and improving operations in Europe and Latin America. The world's seventh-largest carmaker still makes the lion's share of its profits in North America, so improving, or at least maintaining, its margins there is a key focus. The carmaker reported an 8 percent adjusted operating profit margin in the region, up from 7.6 percent a year ago, despite a drop in sales and shipments. "FCA's profitability in North America remained strong in the quarter despite a weakening market there," a Milan-based analyst said. FCA's profitability compares with an 8.3 percent North America margin reached in the quarter by bigger U.S. rival GM , showing CEO Sergio Marchionne making progress towards his goal of closing the margin gap with GM and the company's other U.S. rival, Ford, by 2018. The company's confirmation of its full-year outlook also pushed shares higher, a trader added. The stock was up 2.8 percent by 1129 GMT, outperforming a 1 percent rise in the European auto index. FCA has been retooling some U.S. factories to boost output of sport-utility vehicles (SUVs) and trucks while ending production of some unprofitable sedans to strengthen profitability as the U.S. car market comes off its peak. The company said a drop in North America shipments due to lower fleet sales and discontinued models was partially offset by higher deliveries of Ram trucks and two models from the Alfa Romeo stable: the Stelvio sport utility vehicle and Giulia sedan. Profitability also improved in Europe, helped by sales of the Stelvio and the new Jeep Compass, and Latin America, while margins at Maserati remained strong at 13.8 percent due to strong demand for its first SUV, the Levante. In a later conference call, investors are looking for hints on the new strategy to 2022 which the company promised to unveil early next year. Chief Executive Sergio Marchionne said earlier this year that FCA would streamline its portfolio and that components businesses, including Magneti Marelli, would be separated from the group, possibly via a spin-off. While FCA confirmed its targets this year, doubts remain about its exposure to a weakening U.S. market, recall costs and potential fines over emissions after it was targeted by European and U.S.

Chrysler Airflow EV crossover concept headed to production in 2024

At the 2020 Consumer Electronics Show (CES), the Airflow Vision Concept took the starring role on the Chrysler stand. More than a year later, Stellantis used its EV Day to show what looked like a running, rolling evolution of the Airflow Vision Concept, but the automaker didn't reference any names for the product. Finally, at one point during the company's Software Day this week, the company brought the production-looking battery-electric crossover out once again, only this time it has a name: Chrysler Airflow. The Stellantis roadmap contains blank spots in the 2022 and 2023 new reveal columns for the Chrysler brand. Car and Driver believes the Airflow could be one of Chrysler's new debuts in 2024. The automaker hasn't offered any details, so the most that can be done with the Airflow is to examine the pieces that Stellantis had already spoken of and see which ones fit. The OEM filed a trademark application for the Airflow name in 2019 and 2021. C/D thinks the five-seat production vehicle will ride on STLA Medium platform and be about the size of the Ford Mustang Mach-E and Volkswagen ID.4. The STLA Medium architecture will serve premium offerings for the C and D segments, will fit battery backs between 87 kWh and 104 kWh and two sizes of e-motors — a smaller motor producing from 168 to 242 horsepower, and a bigger motor putting out anywhere from 201 to 443 hp. Maximum range could be as much as 440 miles, depending on battery and motor combination. The platform slots between the STLA Small and STLA Large, a fourth STLA Frame platform serving trucks and vans.  Just before a four-minute video segment that showed Stellantis CEO Carlos Tavares driving the Airflow, the automaker's head of software said, "It's closer than you think and more than a pure concept." The video shows a range of screens lining the instrument panel, plus a couple more in the back, as well as what look like plush materials and the obligatory panoramic sunroof. With the company aiming to hit 20 billion euros ($22.7B U.S.) in revenue from software by 2030, it said, "The Chrysler Airflow Concept shown in the Stellantis Software Day presentation represents the future of connected vehicles." The first we'll see of that could be the three new software platforms planned to roll out in 2024, all of them powered by AI. CES 2022 isn't far off, and Stellantis has told us there's a big announcement for 2022.

Appeals court delays 'sensible resolution' meeting between GM, Fiat Chrysler CEOs

DETROIT — Three federal appeals judges have delayed a court-ordered meeting between the CEOs of General Motors and Fiat Chrysler to try to settle a lawsuit over corruption by union leaders. U.S. District Court Judge Paul Borman last week ordered GM CEO Mary Barra and FCA CEO Mike Manley to meet before July 1. But GM on Friday asked the federal appeals court in Cincinnati to overturn the order and remove Borman from the case. In an order issued Monday, three appellate judges delayed Borman's order to provide time to consider legal points raised by GM. GM is suing crosstown rival FCA alleging that it got an advantage by paying off United Auto Workers union leaders to reduce labor costs during contract talks. FCAÂ’s former labor chief, Al Iacobelli, is in prison, although the company denies that it directed any prohibited payments. In his order last week, Borman described the lawsuit as a “nuclear option” that would be a “waste of time and resources” for years if he allows the case to move forward. The judge ordered Barra and Manley to sit down without lawyers by July 1 and reach a “sensible resolution of this huge legal distraction.” Borman wants an update from them on a public video conference that same day. Over the weekend he modified the order to allow lawyers to attend the meeting. In a court filing, GM called BormanÂ’s order a “profound abuse” of power. “The court possesses no authority to order the CEOs of GM and FCA to engage in settlement discussions, reach a resolution and then appear alone at a pretrial conference eight days later, without counsel,” GMÂ’s attorneys said. “Second, the court has no business labeling a properly filed federal lawsuit assigned to the court for impartial adjudication ‘a distractionÂ’ or a ‘nuclear option,’” GM said. Borman canÂ’t be viewed as impartial, company lawyers said. The judge declined to comment. In a court filing Monday, Fiat Chrysler lawyers wrote that GM didn't make a good case to remove Borman because judges routinely direct lawsuit parties to talk about settling. The lawyers wrote that GM originally wanted the case assigned to Borman but now apparently is worried that his tough questions mean he will dismiss GM's claims. “GM should not be permitted now to complain that that judge has turned out to be less hospitable to GMÂ’s claims than GM anticipated. Parties are not permitted to engage in such judge shopping," the filing said.