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10 years later, a look back at U.S. auto industry’s near-death experience

The U.S. auto industry this month marks a grim and harrowing milestone: A decade ago, the entire industry was staring into the abyss of total collapse. By 2009, of course, the broader economy was teetering on the brink, with mortgage default rates and foreclosures spiraling and the real estate market in the tank. Both Lehman Brothers and Bear Stearns had collapsed, President George W. Bush had signed the Troubled Asset Relief Program, or TARP, infusing $700 billion of taxpayer money to stabilize Wall Street, and Insurer AIG, stung by huge losses on subprime mortgages, won a federal bailout. Virtually the entire decade had been particularly unkind to the Detroit Three automakers, which were over-reliant on gas-guzzling trucks and SUVs as gasoline prices crept toward the $4 mark, and whose labor costs — especially for health care and retiree pension obligations — were dragging them billions into the red. It was a dreadful, frightening time in Detroit, especially, with reports of plant closures and mass layoffs appearing with alarming regularity. Seeing the federal government's largess with Wall Street, General Motors and Chrysler both went calling for government assistance for themselves. (Ford managed to avoid following suit only by mortgaging all of its assets, including its very brand, years earlier in exchange for billions of dollars in loans.) Yet instead of giving them the "bridge loans" they sought, the incoming Obama administration instead pushed back against GM and Chrysler, eventually guiding them into bankruptcy protection, as the Detroit Free Press recalls in a multimedia story recounting the industry's tumultuous and perilous recent past. The piece uses images of the newspaper's front pages from those days, splashed with what former newsroom colleagues and I would often refer to as "Pearl Harbor font" headlines ("NO DEAL" read the Freep's Dec. 12, 2008, edition). There are also timelines, interactive graphics and snippets of video interviews with two insiders: freshman U.S. Rep. Haley Stevens of Michigan, who served as chief of staff for President Obama's auto task force; and U.S. Rep. Debbie Dingell, the wife of the late longtime U.S. Rep. and industry ally John Dingell, who was then an executive at GM.

FCA close to paying off debt, outperforming Ford in earnings

FCA boosting output of SUVs, trucks in U.S. Marchionne says the company no longer needs a merger partner FCA expects to pay off all debt this year "There's a very strong likelihood that we will outperform Ford" MILAN/DETROIT — Fiat Chrysler's shift to sell more trucks and SUVs boosted margins yet again in its North American profit center, making Chief Executive Sergio Marchionne confident he can hit most of the final targets of his five-year turnaround plan. FCA has been retooling some U.S. factories to boost output of lucrative sport-utility vehicles and trucks while ending production of some unprofitable sedans. This put the world's seventh-largest carmaker on track to become debt-free by the end of the year, and allowed Marchionne to make good on his promise to close the gap on larger U.S. rivals General Motors (GM) and Ford. "There's a very strong likelihood that we will outperform Ford in terms of operating earnings in 2018," Marchionne told analysts on an earnings call Thursday. "That's something that if I told any of us in the room here that would've been doable five years ago, nobody would have believed it." As the 65-year-old executive prepares to hand over the reins to an internal successor next year, he said the improvements mean the company no longer needed a partner to survive. The carmaker has often been the subject of merger speculation, especially after its unsuccessful 2015 attempt to tie up with GM. "The necessity to find a partner, to try and guarantee our survival, going forward, is put to bed. I mean we're done," Marchionne told analysts on a post-results conference call. North America accounted for 71 percent of earnings last quarter, and profit margins in the region rose to 8 percent from 7.1 percent a year earlier, even as shipments fell 3 percent. Meanwhile Ford's automotive margin for North America slipped to 6.8 percent, down from 8.5 percent a year earlier.FCA trimmed its expectations for 2018 revenues and forecast adjusted operating profit of at least 8.7 billion euros, at the lower end of a previously given range. Analysts said FCA's margin improvement was impressive, and it could be on the cusp of a big boost from its new Jeep Wrangler and Jeep Cherokee models and its Ram 1500 truck. FCA ready to pay off its debt But the Italian-American carmaker expects to cancel all debt during 2018 — possibly by the end of June — and generate around 4 billion euros in net cash by the end of the year.

Fiat Chrysler teams with startup Archer to build an electric air taxi

Archer Aviation is one of many startups trying to build an electric vertical takeoff and landing (eVTOL) aircraft, among Volocopter, Hyundai, Lilium and many others. The startup just boosted its standing, however, as it has announced a partnership with Fiat Chrysler Automobiles (FCA). Archer plans to build a composite eVTOL aircraft capable of traveling 150 mph for distances up to 60 miles. FCA will provide access to its “low-cost supply chain, advanced composite material capabilities and engineering and design experience,” according to Archer. The aim is to unveil the electric aircraft design in 2021 and start manufacturing in 2023. Archer has only released a teaser image of the aircraft, showing a sleek six-prop, V-tail design. Presumably, the wings or individual engines rotate to allow for both VTOL and decent forward travel speeds. The design differs from others weÂ’ve seen like LiliumÂ’s aircraft, which has the propulsive fans hidden in the wings. ItÂ’s also nothing like the drone-type designs from Volocopter, Joby and Hyundai. It does look a bit like Larry PageÂ’s “Cora” air taxi, however. Archer said itÂ’s been “hyper-focused” on the customer part of the design, aiming to offer “increased safety while producing minimal noise” compared to helicopters. “Now, we are working with a seasoned, industry-leading automotive partner... to produce thousands of aircraft reliably and affordably every single year,” said co-founder and co-CEO Brett Adcock. All passenger aircraft must pass a rigorous FAA certification process thatÂ’s daunting even for experienced companies like Boeing, and itÂ’s still not clear how “thousands” of air taxis would fit into the current air traffic control system. On top of that, so far weÂ’ve seen zero eVTOL aircraft that look ready for human transport or mass production. Written by Steve Dent for Engadget. Green Plants/Manufacturing Chrysler Fiat air taxi