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Italy reportedly guarantees $7.1 billion loan to Fiat Chrysler

ROME — Italy has approved a decree offering state guarantees for a 6.3-billion euro ($7.1 billion) loan to Fiat Chrysler's (FCA)  Italian unit, a source said, paving the way for the largest crisis loan to a European carmaker. The source said Italy's audit court had signed off on the decree, in a final step of what had been a lengthy and contested process to get the loan approved. The court's approval follows an earlier endorsement by the economy ministry. "The audit court authorized the decree," said a source close to the matter, asking not to be named because of its sensitivity. FCA's Italian division has tapped Rome's COVID-19 emergency financing schemes to secure a state-backed, three-year facility to help the group's operations in the country, as well as Italy's car sector in which about 10,000 businesses operate, weather the crisis triggered by the coronavirus emergency. The loan will be disbursed by Italy's biggest retail bank Intesa Sanpaolo, which has already authorized it pending the approval of guarantees the government will provide on 80% of the sum through export credit agency SACE. The request for state support has sparked controversy because FCA is working to merge with French rival PSA and the holding for the Italian-American carmaker is registered in the Netherlands. FCA's global brands include Fiat, Jeep, Dodge and Maserati. It was not immediately clear what conditions, if any, Italy has set as part of the guarantees and whether they would affect FCA's planned 5.5 billion euro ($6.2 billion) extraordinary dividend, which is a key element in the merger with PSA. FCA, whose shares were down 0.5% by 0908 GMT, had no immediate comment.   Earnings/Financials Chrysler Fiat Peugeot Italy

FCA explains, updates sales reporting in wake of investigation

Fiat Chrysler Automobiles (FCA) is currently under investigation by the Department of Justice (DoJ) and Securities and Exchange Commission (SEC) for possible misappropriation of monthly sales. Not only that but a dealer group filed a lawsuit against the auto company for allegedly bribing dealers to falsify sales reports. In the wake of these mounting pressures, FCA released a report explaining their old sales reporting methods, as well as introducing the method they will use now. The report explains that sales will break down into three main categories. The first category is simply sales made by dealers in the United States that were purchased by your typical consumer. The second group is fleet sales that were purchased directly from FCA. The final group is a mix of various sales including sales by Puerto Rican dealers, cars used for marketing, and vehicles delivered to FCA employees and retirees. The original method of recording these sales relied mainly on the New Vehicle Delivery Report (NVDR). This system allowed dealers to report new car sales at the time of sale. These sales were used to create and report a total at the end of each month. Dealers also had the ability to "unwind" sales. What this means is that a dealer could cancel the sale of a car that was reported as sold in the event that a customer couldn't purchase the car or wanted a different vehicle. This would also return factory incentives to Chrysler and end the warranty period. Fleet and other sales were not recorded through this system, and were rather included in a separate "reserve" of vehicles. FCA explained that it did not know why this was the case, but the company speculated the reason may have been to avoid reporting vehicles that hadn't made it to road use yet. FCA also emphasized that their retail sales reports do not reflect quarterly earnings. The company explained that those earnings are based on vehicles purchased from FCA, which includes sales like the cars dealers buy for their local inventories. The new method also shows FCA's long run of sales increases wasn't as long as first thought. FCA has adopted a new system for calculating sales in light of concerns and confusion. This system retains the categories listed above, but changes how it counts them. The dealer reported numbers will now only include sold vehicles and will deduct sales of unwound vehicles that month.

Chrysler prices updated 2021 Voyager and Pacifica line

Chrysler is updating the Voyager and the Pacifica with a fresh design, available all-wheel drive, plus a handful of improvements inside and out for the 2021 model year. Unsurprising, the changes come with a higher price. Priced at $28,730 including a mandatory $1,495 destination charge, the Voyager L remains the company's entry-level model, and it's $250 more expensive than the 2020 model. Next up is the LX, which starts at $31,540. It's followed by the fleet-only LXi model; if you operate a fleet, or if you're just curious, it's priced at $34,740. Moving up, the Pacifica is a nicer alternative to the Voyager with additional features, a more upscale look, and a correspondingly higher price. It's also offered with all-wheel drive and with a gasoline-electric hybrid powertrain, though the two options are not compatible. The entry point into the range is the Touring priced at $36,540 including the aforementioned destination charge, which is a $1,000 increase compared to the 2020 model.   Related: Least expensive vehicles to insure in America   New for 2021, all-wheel drive is a long-awaited $2,995 option that brings the Touring's price up to $39,535, while selecting the hybrid model bumps that figure to $41,490. Interestingly, the Touring and Touring L models are the only front-wheel drive, non-electrified variants of the Pacifica. Called Limited and Pinnacle, respectively, the next two are only available with one or the other, and they're priced accordingly. The top-of-the-line all-wheel drive Pinnacle is priced in luxury car territory at $54,885, while the hybrid starts at $52,340.  It's worth mentioning the positioning of the all-wheel drive and hybrid models is reversed as buyers move up in the trim hierarchy. Shop for a Touring L, and you'll pay $1,155 more for a hybrid van than for one equipped with all-wheel drive. Step up to the Pinnacle model, and all-wheel drive costs $2,545 more than the hybrid system. 2021 marks the end of the 35th Anniversary and Red S models. Don't expect a 36th, 37th, or 38th Anniversary model to appear, but a sportier-looking version along the lines of the Red S could reappear. Built in Canada, the 2021 Chrysler Voyager and 2021 Chrysler Pacifica will begin arriving in American showrooms in the fourth quarter of 2020. Although the minivan segment isn't nearly as important as it once was, it's still relatively big and several of its main players are receiving comprehensive updates for 2021.