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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.

The Jeep Grand Cherokee Trackhawk is the all-wheel-drive Hellcat you've been waiting for

If the Jeep Grand Cherokee SRT was the venerable SUV cranked to 10, the new Trackhawk goes to 11. Actually, make that 707, because the Grand Cherokee Trackhawk is a Hellcat by another name. Under the hood is the same 707-horsepower supercharged V8 from the sinister corporate cousins Charger and Challenger. The torque rating drops just a bit to 645 pound feet, versus the 650 of the Hellcats, but we don't think many people will be too upset. Especially since Jeep claims the Trackhawk is capable of a 3.5-second 0-60 mph run and a quarter-mile time of 11.6 seconds. The former is right in line with the Challenger Hellcat. View 24 Photos The Grand Cherokee Trackhawk also offers a unique difference to the Hellcats, and its not the SUV body style. The Trackhawk is all-wheel-drive. Power goes from the supercharged V8 to an 8-speed automatic and a single-speed transfer case. There's also an electronic limited slip differential at the back. Jeep beefed up the transfer case with a wider chain that features forged sprockets. The rear drive shaft and half shafts have been strengthened to handle the extra power. Power is split 40/60 front and rear in the default automatic setting, and becomes more rear biased in more aggressive driving modes. In the sportiest "Track" mode, power is split 30/70. In the least aggressive "Snow" mode, power is split 50/50. The sportier drive modes also firm up suspension and decreases shift times. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Helping manage all the power is a high-performance suspension with adaptive Bilstein shocks. The suspension lowers the SUV a full inch compared with normal Grand Cherokees. Wheels are 20 inches in diameter and 10 inches wide wrapped in 295-millimeter wide tires, either all-seasons or optional three-seasons. An optional forged set of wheels is available, too, which Jeep says will save 12 pounds of weight. The wheels are stopped by Brembo six-piston calipers and 15.75-inch rotors up front, and four-piston calipers and 13.73-inch rotors out back. Jeep says the front brakes are the largest ever fitted to one of its vehicles. Visually, you'll be hard-pressed to tell a Grand Cherokee Trackhawk from the current SRT variant. The bumpers and fender flares are roughly the same. But a tell-tale sign is the lack of fog lights.

Stellantis to introduce hybrid versions of Fiat 500e EV, Jeep Compass

  MILAN — Fiat owner Stellantis said on Monday it would build a hybrid version of its 500e small electric car at its Mirafiori plant in Turin, Italy, amid a slowdown in electric car sales. The announcement came after Stellantis CEO Carlos Tavares met in Turin with union representatives who had long been asking the company to boost production at Fiat's historic home with a new high-volume, cheaper model. The factory currently produces the 500e model, but a global slowdown in sales of fully electric vehicles has pushed Stellantis to significantly slow production rates, introducing protracted furlough periods for the plant's workers. "Carlos Tavares recalled the importance of offering affordable and high-quality cars for Italian customers," Stellantis said in a statement. It added that developing affordable cars also depended on external factors including lower energy costs, the development of a charging network for electric vehicles, and long-term subsidies for auto purchases. The move might help the automaker improve its relations with the Italian government, which has often criticized the group for its falling output in the country and for making some of its Fiat and Alfa Romeo models abroad. Stellantis — Italy's only major automaker — and the Rome government are in talks over a plan aimed at restoring the group's production in the country to 1 million vehicles by the end of this decade from around 750,000 last year. "The shared ambition with the Italian government to reach 1 million vehicles produced in Italy by 2030, will need a supportive business environment, currently impacted by electrification uncertainties and strong competition with new entrants to the market," the automaker said. FIM-Cisl union leader Ferdinando Uliano, who attended the meeting with Tavares, said Stellantis told him and others that production of the hybrid 500e would start in the first quarter of 2026 but did not give details about targeted output figures. Automotive News Europe, which first reported the hybrid 500 production earlier on Monday, said Stellantis was aiming for total annual output of 200,000 500s, including 125,000 hybrids, compared with fewer than 80,000 last year. The Franco-Italian carmaker also said it would build a hybrid version of the Jeep Compass SUV at the Melfi plant in southern Italy, and that production of the hybrid Fiat Panda city car made in Pomigliano near Naples could be extended.