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Fiat Chrysler's profit boosted by Ram and Jeep in North America

MILAN/DETROIT — Fiat Chrysler took the market by surprise by sticking to its full-year profit guidance on Wednesday after a strong performance from its Ram pickup truck in North America helped it defy an industry slowdown. Chief Executive Mike Manley, in FCA's first earnings release since a failed attempt to merge with France's Renault, also left the door open to that or other deals. "We are open to opportunity," Manley said on a call with analysts. "I have no doubt why there still would be interest in it," he added, when pressed on what it would take to revive talks with Renault. Manley declined to comment further. FCA last month abandoned its $35 billion merger offer for Renault, blaming French politics for scuttling what would have been a landmark deal to create the world's third-biggest automaker. Manley said a merger was not a must-have and Fiat Chrysler's business plan was strong. The company said it remained confident its adjusted earnings before interest and tax (EBIT) would top last year's 6.7 billion euros ($7.5 billion). Given disappointing forecasts from other automakers this earnings season, FCA's confirmation of the outlook sent Milan-listed shares in the Italian-American automaker, whose other brands include Jeep, up over 4%. A broad-based auto sales downturn has rattled the sector, forcing FCA's competitors — including Renault, Daimler and Aston Martin — to cut their sales forecasts after second-quarter results, while U.S. carmaker Ford gave a weaker-than-expected 2019 profit outlook. Japan's Nissan, a long-term partner of Renault, said it would cut 12,500 jobs by 2023 after its earnings collapsed. In the second quarter FCA's adjusted EBIT totaled 1.52 billion euros, versus analysts' expectations of 1.43 billion euros, according to a Reuters poll. FCA's U.S. shipments were down 12% in the second quarter but the group said that the successful performance of its Ram brand resulted in an enhanced share of the large pickup truck market of 27.9%, up 7 percentage points from last year. Adjusted EBIT margin in North America rose to 8.9% from 6.5% in the first quarter, thanks to strong demand for the heavy-duty Ram and the new Jeep Gladiator pickup. Chief Financial Officer Richard Palmer also said FCA expected to report up to 10% margins in the region in both the third and fourth quarters.

Will airbags sandbag the 2017 Dodge Viper?

The Dodge Viper is speeding down the road to cancellation for the 2017 model year, and at least part of the reason for the V10 monster's death is a problem fitting it with federally mandated side curtain airbags. An anonymous source close to FCA US told Motor Trend the automaker can't install the parts because they would further limit the coupe's already tight headroom. The government believes the side curtain airbags can reduce occupant ejections during accidents, and all vehicles must have them for the 2017 model year. The Viper's slow sales also don't provide FCA US much motivation to work out a solution to this problem. The automaker moved just 676 of the handmade sports coupes in the US in 2015, which was down 11 percent from 760 deliveries in 2014. FCA CEO Sergio Marchionne hinted at the Detroit Auto Show that the Viper could return eventually. He doesn't like that the current model has a dedicated platform but indicated a new one could share the underpinnings with another of the company's products. Marchionne's current business plan for FCA stresses building the automaker's value, so it might be a while before we see the sweater-clad CEO focusing on a niche vehicle like the Viper. Related Video:

Driving the 2019 Dodge Durango Pursuit | Bells and whistles, lights and sirens

Recently, we went to the FCA proving grounds in Chelsea, Mich., to test out the company's 2019 model-year lineup. There are a lot of cars to choose from, and only a limited time to drive them, so since we couldn't drive the Dodge Challenger SRT Hellcat Redeye (that drive is coming soon, though) naturally we gravitated to the flashiest, noisiest one: the 2019 Dodge Durango Pursuit police vehicle. This is the first time the Durango is being offered as a cop car, and there are a number of features that make it fit for service. All Durango Pursuit models feature all-wheel drive, and it's available with two different engines. The standard motor is the 3.6-liter Pentastar V6, providing 293 horsepower and 260 pound-feet of torque. The tester we got to drive, though, was equipped with the 5.7-liter hemi V8, good for 360 horsepower and 390 pound-feet of torque. It also has a load-leveling performance suspension, which really helped out when we tossed it around the handling course. It has 8.1 inches of ground clearance, which means it can get to scenes off the beaten path. As much as we loved driving it, we had the most fun just playing with the lights and sirens of the Durango Pursuit. Standing outside the vehicle, the sirens and horn are incredibly loud, enough to make bystanders jump in fright. Dodge did a good job with the sound deadening, though, and the sustained wail wasn't bothersome when chasing imaginary suspects around the test track. One feature we didn't get to test out, but important to police duty, was the special Uconnect system in the Durango Pursuit. More than just an infotainment system, the seven-inch display is equipped to integrate various law enforcement systems. Another cool detail about the car, its tri-zone climate system is ideal for K9 units, with the ability to set separate HVAC settings for the dogs in the back of the car. Check out the video above, and stay tuned for more videos to come from our time spent at FCA's Chelsea proving grounds. Related Video: Dodge Crossover SUV Police/Emergency Special and Limited Editions Videos FCA