2011 Cummins Laramie 4x4 Crew Cab Dually on 2040-cars

Auto blog

Fiat Chrysler profit up as it closes in on retiring its debt

MILAN — Fiat Chrysler Automobiles reduced its debt by more than expected in the first quarter, putting the carmaker well on course to become cash positive later this year. Chief Executive Sergio Marchionne expects to cancel all debt during 2018 — possibly by the end of June — and generate around 4 billion euros ($5 billion) in net cash by the end of the year. Marchionne has said that forecast does not include any one-off measures, nor the impact of the planned spinoff of parts maker Magneti Marelli, which he hopes to execute by early 2019. The world's seventh-largest carmaker said on Thursday net debt had fallen to 1.3 billion euros ($1.6 billion) by the end of March, well below a consensus forecast of 2.6 billion euros in a Thomson Reuters poll of analysts. FCA said capital spending fell 900 million euros in the quarter due to "program timing," which analysts said implied higher investments for the rest of the year. The Italian-American group said first-quarter operating profit rose 5 percent to 1.61 billion euros, below a consensus forecast of 1.74 billion, as a weaker performance from its North American profit center weighed. Shipments there were higher due to the new Jeep Wrangler and Compass models. But currency moves hit revenues and earnings, and costs related to new product launches added to the pressure. FCA's shift to sell more trucks and SUVs boosted margins yet again in North America to 7.4 percent from 7.3 percent in the same quarter a year ago, although they were down from the 8 percent recorded in the preceding three months. Marchionne, preparing to hand over to an internal successor next year, is close to his goal of ending a margin gap with larger U.S. rivals General Motors and Ford. The 65-year-old has said becoming debt free and being able to compete on a par with U.S. peers would mean FCA no longer needed a partner to survive and could well succeed on its own. The CEO has previously said tying up with another carmaker would help to meet the huge costs in an industry investing in electric vehicles and automated driving. FCA shares fell immediately after the results, but recovered to trade up 3 percent at 19.71 euros by 1150 GMT, outperforming a 0.4 percent rise in Europe's blue-chip stock index. ($1 = 0.8214 euros) Reporting by Agnieszka FlakRelated Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Dodge recalls 27k Darts for bracket that can disrupt transmission module

Dodge is recalling 27,520 examples of the 2013-2015 Dart with dual-clutch gearboxes. The mounting bracket for the transmission control module can affect the part's operation and cause the compacts to suddenly shift into neutral. According to the automaker, 23,688 of them are in the US, 3,376 in Canada, 5 in Mexico, and 451 elsewhere. The National Highway Traffic Safety Administration reports these examples carry build dates between February 24, 2012, and June 16, 2015. There are also no reports of accidents or injuries. Because of the way the bracket is mounted, the part can put too much force on the control module's circuit board and cause it to shift out of gear. The engine and airbags remain operable if this happens. To fix things, dealers will install a redesigned mount and replacement module. Related Video: Statement: Mounting Bracket September 14, 2015 , Auburn Hills, Mich. - FCA US LLC is recalling an estimated 23,688 cars in the U.S. to replace certain control modules and mounting brackets that may contribute to a loss of motive power. The Company is unaware of any related injuries or accidents. An FCA US investigation prompted by a small number of warranty claims discovered a control-module mounting bracket may apply too much force and disrupt the function of a circuit board within the module. This condition, unique to certain cars equipped with dual dry-clutch transmissions (DDCT), may cause the transmission to shift into neutral. However, the engine remains on and the vehicle's air-bags, as well as other safety features, are unaffected. The condition may also be preceded by the illumination of a dashboard warning light. Customers who observe this are urged to contact their dealers. The campaign is limited to certain 2013-2015 Dodge Darts equipped with DDCTs. Additional vehicles will be recalled in Canada (3,376), Mexico (five) and outside the NAFTA region (451). Affected customers will be advised when they may schedule service, which will be performed free of charge. Service will entail installation of a redesigned mounting bracket and replacement of the control module. Customers with additional questions may call the FCA US Customer Information Center at 1-800-853-1403.

Weekly Recap: FCA hit with record fine as NHTSA crackdown continues

The National Highway Traffic Safety Administration slapped Fiat Chrysler Automobiles with a record fine this week that could reach $105 million. The punishment comes after NHTSA found problems with the automaker's execution of 23 recalls that affect more than 11 million vehicles. The consent agreement, announced Sunday, calls for FCA to pay a $70-million cash fine and requires the company to spend at least $20 million over a three-year period on industry outreach programs and to beef up old recall campaigns. Failure to comply will result in another $15-million fine. FCA also agreed to federal oversight, which includes an independent monitor to oversee the company's recalls. The $70-million cash fine equals a penalty NHTSA levied on Honda in January. "Fiat Chrysler's pattern of poor performance put millions of its customers and the driving public at risk," NHTSA administrator Mark Rosekind said in a statement. "This action will provide relief to owners of defective vehicles, will help improve recall performance throughout the auto industry, and gives Fiat Chrysler the opportunity to embrace a proactive safety culture." FCA called the deal a "consensual resolution," but admitted that it "failed to timely provide an effective remedy" during certain recalls. "We are intent on rebuilding our relationship with NHTSA and we embrace the role of public safety advocate," the company said in a statement. The announcement kicked off a busy week for the automaker. NHTSA agreed FCA did not need to recall 4.7 million vehicles after an investigation failed to find defects with a power module used in some Jeep, Dodge, and Ram vehicles. A Georgia judge also reduced a civil verdict involving a death in a Jeep Grand Cherokee crash. Amid all of that, the company reported net profit of about 333 million euros, or $364 million in the second quarter on Thursday. OTHER NEWS & NOTES FCA ramps up Hellcat production Despite a decidedly legal and financial week for FCA, there was still time for the performance side of the business to briefly grab the spotlight. The automaker is more than doubling its production of the Dodge Challenger and Charger SRT Hellcats in response to strong demand. The order bank opens the second week of August and production begins in September. FCA will finish up its scheduled 2015 model-year Hellcat builds, and cancel any "unscheduled" versions, though customers will get discounted pricing for 2016.