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Fiat Chrysler's Q3 profit boosted by strong North American earnings

MILAN, Italy — Fiat Chrysler Automobiles (FCA) reported a 17 percent jump in third-quarter adjusted operating profit on Tuesday, helped by a strong performance in its key North American market and improving operations in Europe and Latin America. The world's seventh-largest carmaker still makes the lion's share of its profits in North America, so improving, or at least maintaining, its margins there is a key focus. The carmaker reported an 8 percent adjusted operating profit margin in the region, up from 7.6 percent a year ago, despite a drop in sales and shipments. "FCA's profitability in North America remained strong in the quarter despite a weakening market there," a Milan-based analyst said. FCA's profitability compares with an 8.3 percent North America margin reached in the quarter by bigger U.S. rival GM , showing CEO Sergio Marchionne making progress towards his goal of closing the margin gap with GM and the company's other U.S. rival, Ford, by 2018. The company's confirmation of its full-year outlook also pushed shares higher, a trader added. The stock was up 2.8 percent by 1129 GMT, outperforming a 1 percent rise in the European auto index. FCA has been retooling some U.S. factories to boost output of sport-utility vehicles (SUVs) and trucks while ending production of some unprofitable sedans to strengthen profitability as the U.S. car market comes off its peak. The company said a drop in North America shipments due to lower fleet sales and discontinued models was partially offset by higher deliveries of Ram trucks and two models from the Alfa Romeo stable: the Stelvio sport utility vehicle and Giulia sedan. Profitability also improved in Europe, helped by sales of the Stelvio and the new Jeep Compass, and Latin America, while margins at Maserati remained strong at 13.8 percent due to strong demand for its first SUV, the Levante. In a later conference call, investors are looking for hints on the new strategy to 2022 which the company promised to unveil early next year. Chief Executive Sergio Marchionne said earlier this year that FCA would streamline its portfolio and that components businesses, including Magneti Marelli, would be separated from the group, possibly via a spin-off. While FCA confirmed its targets this year, doubts remain about its exposure to a weakening U.S. market, recall costs and potential fines over emissions after it was targeted by European and U.S.

CAR adds details to Alfa Romeo's five-year plan

Much of this month's issue of CAR Magazine is devoted to Alfa Romeo and what we can expect from it in the next five years. Of course, they unfortunately went to print before FCA CEO Sergio Marchionne died (and it took a while for it to land in my mail box), so certain elements are bound to change in light of new leadership. Nevertheless, there are plenty of interesting tidbits to chew on. First, there are a few more details regarding the Alfa Romeo 8C super car, which was confirmed during FCA's recent five-year plan announcement. Unlike the last front-engined, rear-drive 8C, the new one would be mid-engined with the rear wheels powered by a version of the Quadrofoglio turbo V6 brought up to the 600-horsepower range, and some amount of electrification added to the front axle. CAR indicates a total output of around 800 hp and 660 pound-feet of torque. A carbon fiber monococque would help keep the weight down, and to keep cost down, reporter Georg Kacher posits its production will be farmed out to a third party like Dallara. Both pricing and performance will be interesting with the 8C: how much does FCA want Alfa Romeo to compete with Ferrari? Without Marchionne leading both, perhaps it won't matter. View 19 Photos Then again, how much it wants Alfa to compete with Maserati might, as the future Giulia-based GTV coupe could do just that. Apparently, the coupe and convertible range is intended to compete with the entire breadth of the German two-door catalogue, from 4 Series and M4, to C- and E-Class Coupes. Presumably it'll therefore be more than just a Giulia coupe. Regular, high-performance and plug-in hybrid versions are mentioned. Finally, as was part of the previously announced five-year plan, there will be SUVs introduced on either side of the Stelvio. Apparently, it was originally thought that the smaller of the two would be produced on the cheaper Renegade/500X platform, but that has been nixed in favor of the Giulia's "Giorgio" platform to maintain a higher degree of engineering sophistication. If so, good call. The bigger of the two new Alfa SUVs would also be on the platform, and since it's been rumored that the next Jeep Grand Cherokee will be as well, it'll be interesting to see how similar those two mid-size SUVs will potentially be. There are many more Alfa insights from CAR, but as it's restricted to print and not on their website, we can only urge you to swing by your local magazine rack and pick up the latest issue. They do good stuff.

Ram, Jeep redesigns on hold, Alfa Romeo models may come sooner

Last summer, FCA outlined an ambitious five-year plan that sketched out the company's product intentions for each of its brands through the end of 2018. However, even the best strategies sometimes need tweaking. According to Reuters after speaking with unnamed people at auto suppliers, FCA is now possibly delaying at least a dozen projects in North America for a variety of reasons. From vehicle to vehicle, these postponements allegedly last anywhere from just a few months to over a year. The sources from the suppliers claim that in some cases these tweaks are for engineering and design changes. The next-gen Ram 1500 reportedly has among the shorter delays and is being pushed from mid-2017 to November 2017, according to Reuters. Also, the much-discussed future Jeep Wrangler is allegedly moving a little later to July 2017. Among the vehicles purportedly seeing longer delays, the next-gen Grand Cherokee could get pushed back about a year to 2018. That then forces the launch of the three-row, luxury Grand Wagoneer to be even further away. Jeep's upcoming C-segment CUV and the all-new Chrysler 300, Dodge Charger, and Challenger might also see postponements. The one brand allegedly seeing an accelerated plan is Alfa Romeo. Without going into detail, the sources from these suppliers claim that the Italian automaker is getting even more vehicles for its lineup and could get them even faster than planned. "Those plans need to be flexible and fluid, with the potential to add some vehicles, pull some forward and extend the life cycle of others," FCA said to Reuters about all of these allegations. "We look at these programs on a vehicle-by-vehicle basis." Investment in the auto industry has been a major topic for FCA CEO Sergio Marchionne as of late. He believes consolidation is necessary so that companies aren't burning money on the same projects. Related Video: News Source: ReutersImage Credit: Bill Pugliano / Getty Images Plants/Manufacturing Alfa Romeo Chrysler Dodge Fiat Jeep RAM Sergio Marchionne FCA fca us