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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.

J.D. Power 2020 Initial Quality Study puts Dodge and Kia in first place

For the first time ever, an American automaker is ranked at the top of J.D. Power's yearly Initial Quality Study as Dodge tied with Kia for the top spot. Kia landed in first from second place last year — though it's Kia's sixth consecutive year as the top-ranked "mass market" brand — while Dodge jumped an impressive seven spots to move into a tied first from eighth in the 2019 edition of the study. Dodge is one of seven domestic automakers that find themselves in the top half of J.D. Powers' 34th consecutive IQS study. Dodge and Kia's score of 136 problems experienced per 100 vehicles (PP100) puts them ahead of Chevrolet and Ram (141 PP100), Genesis (142 PP100), Mitsubishi (148 PP100) and Buick (150 PP100), which make up the top five after accounting for tied scores. GMC, Volkswagen, Hyundai, Jeep and Lexus round out the top 10. As you probably noticed, Mitsubishi and Lexus are the only Japanese brands to make it into the first 10 spots, and Genesis took home the award as the top-ranked premium brand. This is the first year that J.D. Power released data on the survey results from Tesla owners, and it's not good news for the California-based electric vehicle manufacturer. With an adjusted score of 250 PP100, Tesla is in dead last place on the 2020 IQS Study, just behind Land Rover's score of 228 PP100. It's worth noting that Tesla's score isn't an official entry into the IQS study because surveys were only available in 35 states as the company is the only automaker that has not granted J.D. Power permission to survey Tesla owners in the 15 other required states. According to J.D. Power, about a third of all problems reported by owners of 2020 model-year vehicles within the first three months of ownership relate to issues with infotainment and technology. In many cases, the high-tech systems aren't broken, but are difficult for owners to use or don't work as well as they should. Those issues are "just as severe as other problems," according to Dave Sargent, vice president of automotive quality at J.D. Power, especially since a "customer is stuck with this [issue] for the rest of the time they own the vehicle." J.D. Power surveys the owners of new cars with a questionnaire that covers 223 problems organized into nine categories: climate, driving assistance, driving experience, exterior, features/controls/displays, infotainment, interior, powertrain and seats.

The Walter P. Chrysler Museum is shutting down permanently this December

It is with disappointment that we report the Walter P. Chrysler Museum in Auburn Hills, MI, will be closed down permanently at the end of this year. The museum, which closed in 2012 after not being able to cover costs, was recently reopened to the public on alternating weekends starting in June, but Chrysler made the decision to shutter it altogether after its final day of operation on December 18, 2016. The reason for this is primarily because FCA needs more office space, and the company decided to convert the museum for that purpose. The the cars will be moved to storage after the closure, and they'll be shown at various events. However, they'll only be able to be seen together for two more weekends. Those weekends include those of November 19 and 20, and December 17 and 18. The museum will be open from 10 am to 4 pm on those days. If you can, we highly recommend visiting the museum. Adults get in for $10, seniors and retired FCA employees for $8, kids between 6 and 17 for $6, and kids under 5 for free. It also has some fantastic cars including concepts from the 1950s to the 2000s, oddball performance vehicles such as the Omni GLH-S, and of course plenty of fascinating history. And if it makes any difference to you, there's even a purple Plymouth Prowler you can sit in. Just make sure you don't wait too long to make up your mind about visiting. Related Video: