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Jeep dealers worried Grand Wagoneer could be too much, too late

On January 10, 2011, an Automotive News article quoted Fiat Chrysler CEO Sergio Marchionne saying, "It's time we gave the market an upper-scale Grand Wagoneer." Like Babe Ruth pointing a finger at the far stands, Marchionne next predicted our date with historical destiny: "You'll see it in January 2013." Had that happened, the Grand Wagoneer would been a grand slam. Seven years later, with various economic factors in flux and still with no Grand Wagoneer in sight, it seems some Fiat Chrysler dealers are worried the luxury three-row Jeep could appear after the SUV game is over or, at the very least, much harder to play. What got in the way of the Grand Wagoneer? Shifting plans for and the need to pour money into Alfa Romeo. The debate about what kind of vehicle the Wagoneer should be — a unibody Range Rover rival, or a body-on-frame Chevrolet Suburban foe. After that, what should the thing look like? And then there's Fiat Chrysler's North American manufacturing capacity, which can't shoehorn space for Grand Wagoneer production at the same time as it needs lines running for two Ram 1500 model years. That last point is what could push Wagoneer and Grand Wagoneer arrival to 2021. Outside the company, at least one Bank of America Merill Lynch analyst believes that economic forces such as a shrinking car market, more competition, higher interest rates on more expensive cars, lower used car prices, and higher gas prices will soon bring an end to the "Goldilocks" phase of crossover mania. He isn't alone, with an IHS analyst saying the same thing three years ago, another IHS analyst diving deeper into the declining numbers two years ago, and three other analysts breaking down depressed used car prices. Fuel prices are anyone's guess, but those other pressures could squeeze retailers trying to sell high-end metal. No one expects the Grand Wagoneer to fail, yet dealers don't expect the vehicle to practically sell itself. One dealer told AN, "We could have killed with [the Grand Wagoneer] if it had been available when they first told us about it, but it's a much tougher sell with interest rates and gas prices going up." Another dealer, perhaps more sanguine, said, "The Grand Wagoneer will still sell because it's a Jeep. But it would have been nice to have them already." "Nice" is an understatement. One dealership was so excited about getting the new big Jeep that it wrote a blog post in 2015 announcing the Grand Wagoneer's arrival in 2018.

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 recalls 2013 Ram pickups, 2014 Jeep Grand Cherokee

Chrysler's spate of successful products is about to be marred by a trio of recalls. The Pentastar is recalling 51,477 Ram trucks and Jeep SUVs. According to the National Highway Traffic Safety Administration, there have been no reported accidents, injuries or deaths related to the affected vehicles.
The largest action covers the Ram 1500, which is seeing 45,961 trucks being recalled. Models built between June 26, 2012 and February 5, 2013 are being recalled due to a potential software issue in the electronic stability control. Apparently, the system can be randomly deactivated upon vehicle startup.
Chrysler is also recalling 4,458 2014 Jeep Grand Cherokee models. Covering everything but the SRT models, the potentially defective SUVs were built between January 14 and March 20, 2013. This recall focuses on "premium headlights," which means cars equipped with LED running lights. During the switch from the bright daytime running lamp setting to the low-intensity parking light setting, an electrical spike can cause one of the Jeep's computers to go into a safe mode, turning off the LEDs. This violates Federal Motor Vehicle Safety Standards.