2014 Jeep Grand Cherokee Limited on 2040-cars

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Chrysler reports $166M net income for Q1, down $307M vs. 2012

Preliminary first-quarter results from 2013 have been announced by Chrysler, and the company is reporting a net income of $166 million on revenue of $15.4 billion. Compared to this period last year, net income is down $307 million and revenue has dropped $1 billion.
Chrysler says that its quarter was negatively affected by the costs associated with launching its 2013 Ram Heavy Duty, 2014 Jeep Grand Cherokee and preparation for the return of the all-new 2014 Jeep Cherokee pictured above. The launches should provide a strong second half of 2013, says the automaker. "We remain on track to achieve our business targets, even as the first-quarter results were affected by an aggressive product launch schedule," said Chrysler Group LLC Chairman and CEO Sergio Marchionne.
On a positive note, the automaker says worldwide vehicle sales are up 8 percent from one year ago, a number pushed by a 12 percent bump in U.S. retail sales. In addition, domestic market share has risen slightly, up to 11.4 percent from 11.2 percent last year. Read more in the official statement below.

Stellantis moves to set up its own lending unit

Stellantis is buying Houston-based auto lender First Investors Financial Services Group to set up its own finance arm in the U.S., a move that should support sales and eventually boost profit. The only major traditional automaker in the U.S. without its own finance company agreed to pay $285 million to a group of investors led by Gallatin Point Capital and Jacobs Asset Management, according to a statement. The transaction is expected to close by year-end. Stellantis was formed via the merger between Fiat Chrysler and PSA Group early this year. Carlos Tavares, the PSA boss who became the combined company’s chief executive officer, called the deal to acquire First Investors a milestone that will increase earnings and enhance customer loyalty. “Direct ownership of a finance company in the U.S. is a white-space opportunity which will allow Stellantis to provide our customers and dealers a complete range of financing options,” Tavares said Wednesday in the statement.  Having an in-house finance company has helped rivals General Motors Co. and Ford Motor Co. pad profits, especially during the global semiconductor shortage that has limited production and crimped sales. GM bought subprime lender AmeriCredit Corp. in 2010 and renamed it GM Financial. The operation generated a $2.76 billion profit in the first half -- roughly a third of the companyÂ’s adjusted earnings before interest and taxes. Trouble for Santander? The First Investors acquisition could spell trouble for Chrysler Capital, the operation that Santander Consumer USA Holdings Inc. and Chrysler set up in 2013 before the U.S. automaker completed its merger with Fiat. In a statement, Santander Consumer said itÂ’s committed to supporting Stellantis through the term of their existing agreement and its transition. Santander Consumer will also have “ongoing conversations with Stellantis about long-term mutually beneficial opportunities beyond 2023,” the company said, adding that its consumer business remains strong and has “delivered solid results for our shareholders.” This, along with support from its parent company, will allow the lender to “pursue additional opportunities as they arise.” The lenderÂ’s U.S.-listed stock fell 1.5% in New York trading Wednesday after Bloomberg reported Stellantis was preparing to announce a new finance partner. Stellantis shares rose as much as 1.3% in Paris trading Thursday.

LA-bound 2014 Jeep Wrangler special edition gives us the Willys for $25,795

The Jeep Wrangler might be the reigning king of special editions, but with sales records being broken almost all year, this plan is obviously resonating with buyers. Joining new models like the Dragon Edition and Polar Edition, the 2014 Jeep Wrangler is adding a new Willys Wheeler Edition to pay homage to Jeep's military heritage.
Getting ready for its big debut at the LA Auto Show, the 2014 Jeep Wrangler Willys Wheeler Edition is inspired by early Willys CJ (Civilian Jeep) models with exclusive styling and upgraded off-road goodies. Starting with a Wrangler Sport, these upgrades include a Dana 44 rear axle with limited-slip differential and 3.73 gears, along with meaty BF Goodrich KM Mud Terrain tires mounted to the Willys Wheeler's black 17-inch wheels. For more of a classic Jeep look, this model adds a gloss black grille, "Willys" hood stickers and rock rails to protect the side sills. Jeep is also tossing in a D-ring, tow strap and gloves that are all kept in a special carrying bag.
When it goes on sale early next year, the Wrangler Willys Wheeler Edition will start at $25,795 for the two-door model, while the four-door will start at $29,595. There's an official press release posted below, and we'll be sure to have live images of the special-edition Wrangler live from the LA Auto Show floor later this week, so stay close.