2015 Chrysler 200 S on 2040-cars

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Buy Ford and GM stock and make 5%

Want to make a five-percent return when 10-year treasuries are paying around two percent? Ford (F) and General Motors (GM) have solid balance sheets, strong cash flow, solid earnings, and growing markets. By all accounts, they are smart investments. But the market is down on these stocks. Why? Some of the stupid excuses include: They are cyclical companies The Detroit 3 have lost 3.5 million in sales since 2000 The world economy is shaky GM recently filed for bankruptcy Their markets have peaked They haven't changed their ways Let's take these criticisms one by one: They Are Cyclical Companies Yes, they are cyclical. Every company is cyclical. Every industry is cyclical. Some more than others, but not every company is immune from swings in the market. Banks used to be 'non-cyclical' leader, not anymore. Airline stocks are just as cyclical as auto stocks, yet they are trading at multiples greater than the auto industry. Why? And what accounts for the irrational stock price for Tesla (TSLA)? At least Ford (F) and General Motors (GM) make money and have positive cash flows. In fact, both companies have a net positive cash position. They have more cash on hand than liabilities. Auto sales in the United States hit a record 17.5 million vehicles in 2015. During the Great Recession, Ford (F) and General Motors (GM) cut their break even points to 10 million vehicles per year. Anything above an annual U.S. volume of 10 million vehicles is profit. And what a profit they make. Sales of Ford's F-150 continues to be the best-selling vehicle in the United States for over 30 years. Detroit 3 Have Lost 3.5 million in Sales Since 2000 Automotive News reports General Motors (GM), Ford (F) and Chrysler (FCA) have lost a combined 3.5 million vehicles sales since 2000. So how can they be making more money? Two big reasons – Fleet Sales and the UAW. Fleet Sales The Detroit 3 used to own car rental companies to keep their factories running. Ford owned Hertz (HTZ), General Motors owned all of National Car Rental and 29 percent of Avis, and Chrysler, the forerunner to Fiat Chrysler (FCA), used to own Thrifty Car Rental and Dollar Rent-A-Car. The Detroit 3 owned these rental companies to have a place to sell their bad product and keep their factories running. These were low margin sales, and in many cases, were money losers for the Detroit 3. They no longer own auto rental companies.

FCA denies report it's pulling Chrysler brand from Japan

TOKYO - Fiat Chrysler Automobiles denied it had decided to pull the plug on the Chrysler brand in Japan, after local media reported it was planning to stop selling the US cars in the country as early as next year following years of poor sales. "Although FCA Japan has already announced its intention to concentrate its resources on the Jeep brand ahead, no decisions have been made regarding (the) Chrysler brand," the automaker said ion Monday. The Nikkei business daily reported that the European-US automaker, which also sells the Jeep, Fiat, Alfa Romeo, and Abarth brands in Japan, was close to deciding to throw in the towel on the Chrysler brand, which posted sales of less than 300 vehicles in 2016, having fallen steadily since around 2000 and are about a tenth of what they were a decade ago. FCA sells only one Chrysler model in Japan, the full-size 300s sedan, which is sold at the company's Jeep dealerships. FCA's Fiat brand, which includes smaller models, and its Jeep brand have been growing in the country. Last year they sold around 6,700 and 9,400 units, respectively, making them top 10-selling foreign branded vehicles in the Japanese market. However, foreign cars constitute a small portion of the total Japanese auto market, which is dominated by domestic brands. Last year, 295,000 foreign-branded new cars were sold in the country, roughly one-tenth of total new vehicle sales. Reporting by Naomi TajitsuRelated Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Featured Gallery 2017 Chrysler 300S Sport Appearance Package: New York 2016 View 12 Photos Auto News Chrysler Fiat Jeep Sedan FCA

New Barracuda, Grand Cherokee Trackhawk coming soon

As we write this, Fiat Chrysler Automobiles is conducting a major dealership event in sunny Las Vegas. New vehicles are being announced, redesigned offerings are being teased, and promises are being made to the sprawling company's dealer body. And, as all these announcements are meant to be tip-top secret, they're leaking out left, right, and center. Naturally. FCA is telling its dealers all of the vehicles shown at the Vegas gala will be in showrooms within 12 to 24 months, and that the product offensive will include at least 30 new or significantly refreshed models. Some of those we've known about since FCA boss Sergio Marchionne unveiled his highly ambitious five-year plan in May 2014, while we're hearing about others for the very first time. We've reached out to our sources within FCA, and will update this post as we learn more. It should be noted that while we've tried to rely on concrete sources or corroborations from multiple sources, some of the news here comes from people claiming to have been in attendance and posting in forums like Allpar and Jalopnik's Opposite Lock. Unless corroborated by a mainstream source or confirmed by our own sources within FCA, we're listing each item that comes from a forum. Have those grains of salt at the ready. Chrysler Dodge Durango-sized SUV with stow-and-go was shown. A poster on Allpar Forums claims it had a Durango's interior. New Aspen? Town and Country PHEV confirmed (again). A plug-in minivan was originally announced as part of five-year plan. No news on 200 or 300. Dodge The redesigned Charger will use the Alfa Romeo Giulia's rear-drive platform and, according Automotive News, draw inspiration from 1999's Charger concept car. We're wagering the 24-month time frame specified to dealers will move the new sedan's arrival up from 2018 to mid-2017. Jalopnik's Opposite Lock claims two new Challenger models are coming. Challenger ADR (American Drag Racer) and T/A. ADR should appeal to bracket racers and is more powerful than the SRT Hellcat, while T/A is for track rats, just like Viper T/A. Automotive News claims the legendary Barracuda nameplate will be revived as a Dodge. The Barracuda will be smaller than Challenger, offered as both a coupe and a convertible. Allpar claims it will feature modern styling. A Dodge Durango SRT was announced with 6.4-liter Hemi V8 and rear-drive. Sources within FCA confirmed its arrival with Autoblog. Apparently, dealers were shown an example in B5 Blue.