Auto blog

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.

2015 Dodge Viper getting small increase in power

The Viper is used to being the most powerful car in the Dodge and SRT stables, but the arrival of the 2015 Dodge Challenger SRT Hellcat means that's no longer the case. The serpentine supercar is, however, reportedly getting a small boost in output for 2015, amounting to all of five horsepower.
The increase was uncovered by Road & Track courtesy of the SAE J1349 certification process to which Detroit's Big Three automakers submit themselves and which reports the Viper's output at 645 hp instead of the 640 it was rated at until now. There are a hundred factors that could have contributed to the relatively mild boost in output (best guess? nothing at all changed...), but we doubt anyone's going to complain about some extra horses under the hood.
The five-horsepower boost brings the Viper that much closer to the 650-hp Chevy Corvette Z06, not to mention the 707-hp Hellcat, but the Viper's impressive power-to-weight ratio ought to mean it'll have little problem keeping up in a straight line - which is just one of the reasons why Chrysler won't shoe-horn the Hellcat into the Viper: as R&T points out, the supercharged engine is too heavy and the blower makes it too tall to fit in the Viper's engine bay.

The Dodge Demon isn't the only way to a 10-second quarter mile

The Demon's rear tires smoke, the front tires lift – and in under ten seconds (after having spent $85,000) you've covered a quarter mile. In short, we fully get the attention shown Dodge's SRT Demonstrator. With disruption the operative word of the times, it's good to see a representative of the movement coming from Detroit. The SRT Demon delivers disruption in spades. There is, however, a viable alternative – and it doesn't require getting on the list at your Dodge dealer. If you want to do 0-60 in under three seconds or the quarter mile in around 10, the folks at Honda, Kawasaki, Suzuki and Yamaha – with any of their one-liter superbikes – have you covered. The gestation of what we now know as the superbike came roughly a decade after the debut of the muscle car. It was in the early '70s, as emission and safety regulations – along with rising insurance premiums – decimated the ranks of Detroit's fastest that motorcycle makers found their magical, almost mystical momentum. Honda's CB750 four was arguably the first, followed soon by Kawasaki's Mach III and Z-1. After that, it was Katie-bar-the-door, with more horsepower offered by Japanese OEMs until, invariably, insurance premiums went higher and, during the last recession, 20-somethings couldn't get affordable loans or insurance. Today, Japan's Big Four are once again engaged in a horsepower war, fueled by the rising interest in MotoGP, along with the rising profits available when selling a $20,000 motorcycle. And if that $20,000 - $10K per wheel – seems high, simple math tells you it's less than half of what you'll spend per corner if buying Dodge's Demon. The specs tell the tale. The Demon, fattened by both its flared fenders and a platform dating from the George Bush administration, supports its 4,200+ pounds on a wheelbase of 116 inches. That's in contrast to Suzuki's GSX-R1000 – redesigned for 2017 – which puts its 443 pounds atop a wheelbase of just 56 inches. To maximize its Hemi-supplied 800+ horsepower, Dodge diverts the air conditioning from the Demon's interior to the engine, which makes racing on a summer evening (you guessed it) devilishly hot. On Suzuki's GSX-R1000 – or similarly-equipped superbikes – almost all of the air at 100+ miles per hour is directed at you. To further underscore the differences, know that the GSX-R1000 and its like-minded competition can turn a quick corner, while the Demon is hard-pressed to execute a U-turn at the end of a quarter-mile straightaway.