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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.

FCA delays Grand Wagoneer and next-generation heavy-duty Ram trucks

The upcoming Jeep Grand Wagoneer has had a tumultuous gestation thus far. At one point it was essentially confirmed, but later it was rumored to have been cancelled. In that context, the latest report from Automotive News is something of a mixed blessing. According to the publication, the Grand Wagoneer has simply been delayed, as has the next-generation Ram heavy duty truck line. This does not seem to affect the fully redesigned Ram 1500, which was previously reported to have been pushed back slightly to 2019. Automotive News says the information came from unnamed sources at the company. Nothing was said about how long the vehicles would be delayed. The publication also conjectures that FCA is delaying the models to save some money to help cover the company's $7 billion of debt , since re-tooling both the heavy-duty truck plant and eventual Grand Wagoneer plant will be expensive. View 6 Photos We reached out to Chrysler for more information on the subject, but the company wouldn't comment on the report. Even so, we wouldn't be too surprised if FCA is indeed delaying these products. The company has delayed a number of vehicles in recent years. In fact nearly every major FCA truck and SUV, including the Grand Wagoneer and Ram line, were delayed about a year and a half ago. We certainly hope the company doesn't delay the Grand Wagoneer for too long, since it's possible it will have a price tag of over $130,000. The profit margins on an SUV with that kind of MSRP would go a long way to helping to pay down the company's debt. Related Video:

Ram's 700 mini-truck blends Fiat genes with 1500 styling cues

Ram's on-again, off-again sub-1500 pickup is allegedly on its way to production, but we haven't seen it yet. In the meantime, the company's Mexican division introduced a trucklet named 700 built on a unibody architecture. The 700's positioning suggests it picks up where the Dakota left off, but it's a completely different breed of truck. And, while its unibody bones are reminiscent of the Honda Ridgeline, it's a much smaller model that's essentially a badge-engineered version of the Fiat Strada. No, not the hatchback briefly sold in the United States from 1979 to 1982; we're talking about the little, economy car-derived pickup sold in dozens of global markets. Think of the 700 as the Dodge Rampage's distant heir. Visually, its front end borrows a handful of styling cues from the 1500, including an upright grille characterized by a bold Ram emblem and mesh inserts. Called SLT, the base model wears a decidedly downmarket look with black plastic bumpers and steel wheels covered by plastic hubcaps. The mid-range Big Horn blurs the line between a commercial vehicle and a crossover with a practical cargo box, while the range-topping Laramie variant is aimed at motorists who want an outdoorsy daily driver. Ram offers two- and four-door models, though only the SLT is available in the former configuration. The 700 boasts a usable 1,653-pound payload and an 880-pound towing capacity. Power comes from a 1.4-liter four-cylinder engine that sends 84 horsepower to the front wheels via a five-speed manual transmission. Buyers can pay extra for a turbocharged, 1.3-liter four that delivers 98 horsepower. It doesn't appear that four-wheel drive is available, and there's no automatic transmission on the menu. Small and cheap doesn't necessarily mean basic. The 700 can be equipped with a seven-inch touchscreen with Android Auto and Apple CarPlay compatibility, a rear-view camera, and electronic driving aids such as ABS brakes and traction control, plus LED headlights. Laramie models also benefit from partial leather upholstery. Ram will release the 2021 700 in the Mexican market this month, but we're not expecting the model to find its way north to the U.S. Drivers who want a small, unibody truck will need to wait until Ford releases the Maverick, which will ride on the same basic platform as the Escape and the Bronco Sport. It's tentatively due out in 2021 as a 2022 model.