1966 F-100 on 2040-cars

Auto blog

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.

Marchionne open to combination with Ford or GM

At the depths of the auto industry implosion, there was widely reported talk that General Motors and Chrysler would be merged into a mighty import-beating behemoth. While such notions clearly never materialized, that doesn't mean the idea is dead. In fact, FCA boss Sergio Marchionne still welcomes the idea of a partnership with either GM or Ford. He responded positively to the idea, calling it "technically feasible," when asked about it at the 2015 Geneva Motor Show, Automotive News reports. "There's bantering that goes on all the time," Marchionne told AN, before quashing suspicions that a plan was in the works by adding that "nothing substantive" was going on. Our favorite black sweater enthusiast isn't quite as interested in the idea of teaming with a foreign manufacturer like PSA Peugeot Citroen, or in the rumored tie-up with Volkswagen, though. That is a shame, particularly in regards to Marchionne's shut down of a partnership with the French, although it isn't necessarily surprising – FCA already consists of eight automakers, and as Sergio told AN, there's really nothing at PSA that could help the company out. What are your thoughts? Is there an obvious project or segment that would benefit from an FCA partnership with Ford or GM? Have your say in Comments. News Source: Automotive News - sub. req.Image Credit: Marco Bertorello / AFP / Getty Images Chrysler Fiat Ford GM Sergio Marchionne FCA merger

Will the Ford GT make 630 hp?

Ford intends to build just 250 examples of the next-generation GT annually when production begins next year. That's low even by supercar standards, but anyone with an Xbox One can drive the highly anticipated model right now in the demo for Forza Motorsport 6. The car is even on the cover of the retail version, but the game might be giving a glimpse at one of the upcoming vehicle's biggest secrets. According to the specs page, the GT makes 630 horsepower and 539 pound-feet of torque, according to Motor Authority. Weight is shown at 2,890 pounds with a front/rear distribution of 43/57. Until now, Ford's only comment on the GT's output from its 3.5-liter twin-turbo V6 is "more than 600 horsepower," and that's certainly the case here. If accurate, the figures make the new model 130-hp more powerful than than the last GT, while also being hundreds of pounds lighter. Compared to modern competitors, the GT would be less powerful than a Ferrari 488 GTB and heavier than a McLaren 675LT. Unfortunately, Ford isn't commenting on the numbers in the game. "As we stated back at NAIAS, the Ford GT will produce more than 600 horsepower, and we can't speak to what Forza includes as specifications in their video game," company spokesperson Matt Leaver said to Autoblog via email. Don't think this is all doom and gloom, just yet. For one thing, more than numbers make a great car. Plus, the GT is still quite some way out from production, and spy shots still show it under development. Even if these figures are accurate at the time of Forza's development, that doesn't mean that they can't change in the meantime. Related Video: