2005 Jeep Wrangler X Sport Utility 2-door 4.0l on 2040-cars

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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.

Chrysler resolves recall issue with NHTSA, will inspect, upgrade affected Jeeps

Chrysler made big news earlier in the month by refusing a recall request from the National Highway Traffic Safety Administration for the 1993-2004 Jeep Grand Cherokee and 2002-2007 Jeep Liberty. Last week, NHTSA boss David Strickland countered by defending his agency's request for the recall of 2.7 million Jeep SUVs. Today marked the deadline for Chrysler to formally respond to NHTSA, and it seems that both parties have met in the middle with Chrysler inspecting and upgrading some of the affected vehicles without using the word "recall," which would constitute the admission of a defect; instead, Chrysler said that it is conducting a "voluntary campaign."
At issue on these vehicles is the positioning of the fuel tank behind the rear axle that could get damaged during a rear-end collision. NHTSA has stated that at least 51 people have been killed in rear-end collisions involving these Jeeps after the vehicles caught fire, to which Chrysler countered by pointing out that both models "met and exceeded" the requirements for fuel-system integrity.
As a compromise on the situation, Chrysler says that it will inspect all pre-2004 Grand Cherokees and pre-2007 Liberty models and, "if necessary, provide an upgrade to the rear structure of the vehicle." According to Automotive News, this upgrade will consist of adding a trailer hitch that will presumably better protect the rear-mounted gas tank. Vehicles already equipped with a factory or Mopar hitch will not be modified. Chrysler's official statement on the matter is posted below, but no additional information has been released, such as when the campaign will begin and how many vehicles could be affected.

FCA UConnect fiasco could set over-the-air updates back years

Since cars have become more software dependent, most major automakers have been inching toward enabling over-the-air updates to keep vehicle electronics, ranging from infotainment systems to safety features, current. But there are only two car companies — Fiat Chrysler and Ford —± currently doing OTA updates, and on a limited basis. GM CEO Mary Barra announced last summer that the automaker will launch a new EV architecture and infotainment system capable of over-the-air updates "before 2020." The one exception, per usual, is Tesla. Since the release of the Model S almost six years ago, the maverick EV automaker has made routine OTA software updates a core part of its vehicle platforms and value proposition, and has sent out updates for everything from adjusting ride height to enabling Autopilot, largely without incident. When I've asked automakers why they can't do the same thing, I've heard reasons ranging from running afoul of their dealers (and archiac regulation) to security concerns. Automakers like Ford and General Motors say they want to act like tech companies, which routinely send out OTA updates for a wide range of devices, but overall the car industry still moves at a very cautious snail's pace. And when automakers do try to move faster and take more risks — unlike with a smartphone update, which people bitch about but live with — the consequences can be significant when things go wrong. That's the case with Fiat Chrysler America and its recent public-relations nightmare when an OTA update went awry. The update went out at the end of last week for the Uconnect system in late-model vehicles, and it made head units go into a near continuous reboot, which caused owners to not only lose access to entertainment features, but also critical functions like emergency assistance. Almost immediately, owners took to Twitter to express outrage, and FCA was caught flatfooted. A tweet went out on Monday on the UconnectCares Twitter account that read, "Certain 2017 & 2018 Uconnect systems may experience a reboot every 45-60 seconds. Our Engineering teams are investigating the cause and working towards a resolution.