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FCA profits surge in second quarter

Fiat Chrysler Automobiles gave the cash register a beating in the second quarter, improving its net profit to 333 million euros ($364M US), which is a 263-percent jump over its reported Q1 profit of 92 million euros ($108M US). At the same time, FCA improved its global profit margin to 7.7 percent. Compared year-over-year, in Q2 2014 FCA reported net profit of 197 million euros making this year's Q2 a 69-percent increase, and profit margins a year ago were 4.9 percent. The two big factors for this increase are strong NAFTA sales and Jeep. In the US alone, Jeep sold 222,940 units in Q2 this year, a jump of almost 20 percent over the same period last year. Revenue in the NAFTA region totaled $18.8 billion, adjusted earnings before interest and taxes were $1.45 billion, both of those numbers more than doubling compared to 2014. The vastly better numbers come on marginally more global sales, 1,181,000 units sold in Q2 2014, 1,193,000 units sold in the same span this year. In the US, FCA began charging dealers one-percent more for vehicles to up the margins, a move that helped boost its US margin from 4.1 percent a year ago to 5.8 percent the first half of this year. The company is holding steady on its guidance of global deliveries at 4.8 million and its net profit guidance at $1.1 to $1.3 billion. It has increased its adjusted outlook for the year to $120.5 billion in revenue, and EBIT to "over $4.93 billion." News Source: Automotive News - sub. req.Image Credit: AP Photo/Carlos Osorio Earnings/Financials Chrysler Fiat Jeep FCA

Hyundai reportedly eyeing a takeover of FCA

The CEO of Hyundai Motor Group plans to launch a takeover bid for Fiat Chrysler ahead of the planned retirement of FCA Chief Executive Sergio Marchionne next spring, Asia Times reports, citing unnamed sources close the situation. CEO Chung Mong-koo will wait for an expected decline in the Italian-American automaker's shares to make his move. Hyundai isn't commenting on the rumors, unsurprisingly, but would presumably stand to benefit by gaining Chrysler's dealer network and the lucrative Jeep brand and probably Ram, too. An FCA spokeswoman in Auburn Hills told Autoblog the company had no comment. But like any story about a possible takeover, this one gets complicated with inside players — and President Trump's posturing on international trade issues. FCA has been the subject of takeover interest before, including by Hyundai, but Marchionne has denied a merger was likely, instead saying his company was in talks with the Korean automaker about a technical partnership. In 2015, Marchionne lobbied General Motors hard, but unsuccessfully, for a tie-up; he was also spurned by Volkswagen. Marchionne had repeatedly stressed the need for car companies to merge to decrease overcapacity and better afford the massive investments needed for things like autonomous and electric vehicles. In the case of Hyundai's reported interest, there is a cast of characters. One is Paul Singer, principal of the hedge fund Elliott Management, an activist shareholder with a $1 billion stake in Hyundai and a major owner of equities in Fiat's home turf of Italy. Then there is FCA Chairman John Elkann, who reportedly disagrees with Marchionne on a successor as CEO of Fiat Chrysler but has little interest in running the company himself and would prefer a merger. Compounding things is what the Trump administration would think of a further blending of Fiat Chrysler's international DNA, though a deal with a Korean automaker is thought to be more palatable to the president and members of Congress than by a Chinese conglomerate like Great Wall Motor, which has confirmed its interest in taking over all or parts of FCA. The full Asia Times piece is here. Related Video: News Source: Asia TimesImage Credit: REUTERS/Rebecca Cook Chrysler Fiat Hyundai Jeep RAM Sergio Marchionne FCA merger takeover

Rumor has it the new Grand Wagoneer has been cancelled, but we're not so sure

This just doesn't seem to add up. Autoline Daily is reporting that plans for a new top Jeep, a reimagined Grand Wagoneer to sit above the Grand Cherokee, have been scrapped. The info comes from Auto Forecast Solutions, an industry analyst company. The Grand Wagoneer was expected to use a stretched version of the next Grand Cherokee's platform, but it reportedly won't accept the larger vehicle. The report implies that the next Grand Cherokee will use a version of the current Grand Cherokee's unibody platform, which is about what we expected. The thing is, the current Grand Cherokee shares its platform with the (longer) Dodge Durango, as well as Mercedes-Benz's GLE and GLS SUVs (remember the DaimlerChrysler days?). It's possible the Wagoneer was supposed to be wider as well as longer, and that the Durango's stretch just wasn't enough, but it seems odd that this is just now coming to light. We have already seen sketches of the new Grand Wagoneer, purported to have leaked out of an FCA dealer meeting. Jeep's CEO has discussed the (high) price the new utility would command. It just seems like a lot of thought went into the vehicle already, thought that wouldn't be put forward if someone hadn't looked into the feasibility of actually building it. The report (the one that says the thing has been cancelled) also says FCA might regroup and build the GW as a body-on-frame SUV on the Ram 1500 platform. That also seems unlikely, since this is supposed to be a luxurious, refined vehicle that's nicer than the Grand Cherokee. It would be tough to accomplish all of that with a ladder frame underneath, and it's just not the way the industry is going, let alone the Jeep brand. We'll keep an eye on this one. Related Video: Featured Gallery 2019 Jeep Grand Wagoneer Dealer Leak Spy Shots News Source: Autoline Daily Rumormill Jeep Crossover Luxury