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FCA close to paying off debt, outperforming Ford in earnings

FCA boosting output of SUVs, trucks in U.S. Marchionne says the company no longer needs a merger partner FCA expects to pay off all debt this year "There's a very strong likelihood that we will outperform Ford" MILAN/DETROIT — Fiat Chrysler's shift to sell more trucks and SUVs boosted margins yet again in its North American profit center, making Chief Executive Sergio Marchionne confident he can hit most of the final targets of his five-year turnaround plan. FCA has been retooling some U.S. factories to boost output of lucrative sport-utility vehicles and trucks while ending production of some unprofitable sedans. This put the world's seventh-largest carmaker on track to become debt-free by the end of the year, and allowed Marchionne to make good on his promise to close the gap on larger U.S. rivals General Motors (GM) and Ford. "There's a very strong likelihood that we will outperform Ford in terms of operating earnings in 2018," Marchionne told analysts on an earnings call Thursday. "That's something that if I told any of us in the room here that would've been doable five years ago, nobody would have believed it." As the 65-year-old executive prepares to hand over the reins to an internal successor next year, he said the improvements mean the company no longer needed a partner to survive. The carmaker has often been the subject of merger speculation, especially after its unsuccessful 2015 attempt to tie up with GM. "The necessity to find a partner, to try and guarantee our survival, going forward, is put to bed. I mean we're done," Marchionne told analysts on a post-results conference call. North America accounted for 71 percent of earnings last quarter, and profit margins in the region rose to 8 percent from 7.1 percent a year earlier, even as shipments fell 3 percent. Meanwhile Ford's automotive margin for North America slipped to 6.8 percent, down from 8.5 percent a year earlier.FCA trimmed its expectations for 2018 revenues and forecast adjusted operating profit of at least 8.7 billion euros, at the lower end of a previously given range. Analysts said FCA's margin improvement was impressive, and it could be on the cusp of a big boost from its new Jeep Wrangler and Jeep Cherokee models and its Ram 1500 truck. FCA ready to pay off its debt But the Italian-American carmaker expects to cancel all debt during 2018 — possibly by the end of June — and generate around 4 billion euros in net cash by the end of the year.

FCA employees likely to reject UAW contract

For a brief, blissful glimmer of time, it seemed like we might have a period of labor harmony here in the Motor City. The United Auto Workers and Fiat Chrysler Automobiles, the UAW's lead bargaining company, came to a pending agreement that seemed promising enough that union president Dennis Williams, shown above with FCA boss Sergio Marchionne, thought it'd be ratified by the membership. Well, he was wrong. It's widely expected that FCA's rank-and-file workforce will vote against the deal, which gave workers a raise, would establish a VEBA-style healthcare pool, and deliver a $3,000 bonus for signing the agreement, while retaining the much-hated two-tier wage system. According to The Detroit News, it'd be the first time in over three decades the union's general population didn't follow its leadership's recommendation. Two of FCA's big US facilities, Toledo Assembly and Sterling Heights Assembly, overwhelmingly voted no, with The News saying they "mathematically sealed the deal's fate." According to The News, UAW Local 1700 President Charles Bell said roughly 90 percent of SHAP's 3,000-plus union workforce voted "no" on the deal. Should the pending agreement fail as it's expected to, there are three potential avenues for the union. First, as The News details, both sides could return to the bargaining table. Second, FCA workers could hit the picket line. Finally, union leadership may opt to focus its firepower on General Motors or Ford. It's a good thing we aren't the gambling sort, because those all seem very much within the realm of possibility. Not surprisingly, rank-and-file UAW members have taken issue with the survival of the two-tier wage structure, while others simply think that union employees deserve a wage hike. There was also, we're betting, some serious concerns over the reshuffling of production that would come with a new FCA/UAW deal. As previously reported, no fewer than four UAW facilities would have their vehicle lines shuffled around, including both SHAP and Toledo. Expect more news as soon as the UAW formally announces the results of its FCA voting. News Source: The Detroit NewsImage Credit: Paul Sancya / AP Plants/Manufacturing UAW/Unions Chrysler Fiat FCA toledo sterling heights

2017 Chrysler Pacifica Hybrid Quick Spin | Dad tested, kid approved

The Chrysler Pacifica Hybrid is a compelling minivan, which feels less weird to say the more we say it (and the more we drive it). Adding a plug-in powertrain to an already solid family hauler makes it more interesting, and leaves the world just a little less greenhouse-gassy for those children you'll be carrying around in it. So, when we had the chance to actually take one home with us, we strapped in the car seat and put it through some real-world usage. For reference, the non-hybrid Pacifica comes with the standard Pentastar 3.6-liter V6, connected to a nine-speed automatic transmission. It provides 287 horsepower and offers 19 miles per gallon city, 28 highway, and 22 combined. The Pacifica Hybrid adds two electric motors and a variable transmission to its more efficient, less powerful Atkinson cycle V6, providing a total of 260 horsepower. The Hybrid also has a 16-kWh battery pack to power its electric driving. It's rated at a combined 84 miles-per-gallon equivalent. Our test kid, Wolfgang, loved the Pacifica Hybrid. He repeatedly asked for rides, which is not unusual, but seemed to prefer the Chrysler to his other options. He even got upset the one time we put him in Mama's Mercedes GLK while the Pacifica was in the driveway. Wolfgang especially loved the buttons to open and close the automatic doors. After heading indoors, he'd occasionally point out the window toward the minivan saying, "Button." He also thought the horn was hilarious. He's heard his fair share of car horns so far in his young life, but none have ever gotten the same belly laughs that the horn in the Pacifica evoked. We have no idea why. It sounds like a normal car horn to us. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Getting the car seat in and out of the Pacifica Hybrid was super easy. The captain's chairs make it even easier. The LATCH anchors were prominent, and easy to find by feel when reaching over the seat. It also helps that you can access the inside anchor by hopping to the other side of the vehicle, and the openness of the second row provides more room to work with. Once in the car, the huge door openings made it easy to get the little guy in and out of the rear-facing seat. While driving, the quietness of the cabin helps facilitate the sort of rudimentary conversation a toddler can hold.