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Fiat Chrysler's profit boosted by Ram and Jeep in North America

MILAN/DETROIT — Fiat Chrysler took the market by surprise by sticking to its full-year profit guidance on Wednesday after a strong performance from its Ram pickup truck in North America helped it defy an industry slowdown. Chief Executive Mike Manley, in FCA's first earnings release since a failed attempt to merge with France's Renault, also left the door open to that or other deals. "We are open to opportunity," Manley said on a call with analysts. "I have no doubt why there still would be interest in it," he added, when pressed on what it would take to revive talks with Renault. Manley declined to comment further. FCA last month abandoned its $35 billion merger offer for Renault, blaming French politics for scuttling what would have been a landmark deal to create the world's third-biggest automaker. Manley said a merger was not a must-have and Fiat Chrysler's business plan was strong. The company said it remained confident its adjusted earnings before interest and tax (EBIT) would top last year's 6.7 billion euros ($7.5 billion). Given disappointing forecasts from other automakers this earnings season, FCA's confirmation of the outlook sent Milan-listed shares in the Italian-American automaker, whose other brands include Jeep, up over 4%. A broad-based auto sales downturn has rattled the sector, forcing FCA's competitors — including Renault, Daimler and Aston Martin — to cut their sales forecasts after second-quarter results, while U.S. carmaker Ford gave a weaker-than-expected 2019 profit outlook. Japan's Nissan, a long-term partner of Renault, said it would cut 12,500 jobs by 2023 after its earnings collapsed. In the second quarter FCA's adjusted EBIT totaled 1.52 billion euros, versus analysts' expectations of 1.43 billion euros, according to a Reuters poll. FCA's U.S. shipments were down 12% in the second quarter but the group said that the successful performance of its Ram brand resulted in an enhanced share of the large pickup truck market of 27.9%, up 7 percentage points from last year. Adjusted EBIT margin in North America rose to 8.9% from 6.5% in the first quarter, thanks to strong demand for the heavy-duty Ram and the new Jeep Gladiator pickup. Chief Financial Officer Richard Palmer also said FCA expected to report up to 10% margins in the region in both the third and fourth quarters.

Chrysler recalling nearly 141k vehicles over electrical woes

Software glitches that randomly illuminate warning lights and cause instrument cluster blackouts are forcing Chrysler to recall 140,800 vehicles, The Detroit News reports. The automaker is recalling 132,000 2014 Jeep Grand Cherokees, 91,559 of which are in the US. In addition to the Jeep recalls, Chrysler is adding 10,800 2014 Ram 1500, 2500 and 3500 trucks to the list for similar problems.
Chrysler reportedly says, "Both events occurred infrequently and appeared to resolve themselves by tuning the vehicle's ignition off and then on."
Engineers discovered a problem with the anti-lock-braking system software that causes the instrument cluster display of the Grand Cherokee to illuminate warning lights and black out - even its ABS and electronic stability control systems are affected. To fix the Jeeps, Chrysler will update the vehicle's software.

2018 Jeep Wrangler: The iconic off-roader, with new innovations

AUBURN HILLS, Mich. — The Jeep Wrangler has a spirit, and Mark Allen is one of its keepers. That's why the 2018 edition still has a fold-down windshield, despite the reality that even the most die-hard Wrangler owners seldom use it anymore. The folding screen dates to the origins of the Wrangler, when Willys were sent to Europe during World War II. The reasons: "The windshields folded down for shipping — and the guy in the back with the howitzer," says Allen, the longtime Jeep design boss. Delivered in 2017 in the FCA Design Dome, the line comes across as a quip, but it's historically dead on. It's through this lens that Allen and the rest of the Jeep designers and engineers devised the modern successor to a primitive military vehicle. The windshield folds down in minutes with the turn of four bolts on this new generation, the JL. It takes about 90 minutes and 28 bolts to do the same on the outgoing JK. Needed or not, the windshield is better and more functional for 2018, even if it looks about the same. This aptly sums up the new model. Get closer and get inside. Look under the hood. There's much more going on than is evident at first glance. Allen says the broad strokes of the current design didn't change because he wanted to remain true to the Wrangler's identity, which lights the path for the entire brand. Crazier ideas were considered, but ultimately, this evolutionary approach was deemed the best. "The Wrangler is instantly recognizable around the world," says Jeep boss Mike Manley. "It has been and remains the absolute icon of the brand." But it is different, and by using any objective metrics, better. The JL is lighter than the JK. It offers a new engine with a mild hybrid function – more on that later. Fuel economy is improved. The interior is nicer, yet still rugged. The on-road ride quality is upgraded, but you can still scale mountains and conquer the jungle. Still, it looks about the same. Let's start there. The round headlights are all-LED, with a horizontal projector sandwiched between the high beams. The taillights are square and have available LEDs. The grille has been massaged to a "keystone" design that recalls the CJ, Allen says. The front wheels are pulled slightly forward, and the beltline is lowered. The vehicle also is longer (how much depends on the version), which creates a better stance. Half doors will be offered on the Rubicon model in 2019 and then will be available across the Wrangler lineup.