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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.

Ford pulling out of V8 Supercars after 2015

Australian racing fans are staring down the end of an era as news breaks that Ford will no longer participate in the V8 Supercars series. Although the official announcement has yet to be made, the decision – as reported widely in the automotive press Down Under and in global motorsport publications – indicates that the Blue Oval automaker has already confirmed its intentions to its shareholders early on Monday to shut down its factory effort in the popular tin-top series at the end of next season. The move will mark the end of an era for what has become the International V8 Supercars Championship. Alongside GM's Holden division, Ford was one of only two manufacturers competing in the series from its inception in the late 1990s through last year when a change in regulations opened the door for entries from Nissan, Volvo and Mercedes. Further rule changes are expected to attract even more manufacturers to the series, with Lexus said to be first among them. Over the past eighteen seasons, the V8 Supercars Championship has been won in a Holden Commodore fourteen times, leaving Ford to win the title only four times with successive versions of the Falcon. Eleven of the cars on the grid this season were Commodores, compared to only seven Ford Falcons between two teams that will need to switch to another manufacturer for the season after next – although some could opt to stick with their Fords for one more season, even without factory support, until the open 2016 regulations take effect. The decision follows Ford's announcement last year that it will cease manufacturing in Australia by 2016, ending a 90-year presence Down Under that stretches back to 1925. Blue Oval models like the Falcon, previously unique to the Aussie market, are being replaced by imported models like the Mondeo and Mustang.

Ford sets world record for biggest Hot Wheels track loop

Take Your Child to Work Day looks like a pretty amazing experience for a child if their parent works at Ford. For the recent event, workers at the Blue Oval set up the world's largest Hot Wheels track loop in the atrium of the company's Research and Innovation Center in Dearborn, MI, and launched toy cars from over three stories. The idea came from Ford dynamometer technician Matt West who had been building progressively larger loops with his son. This one was the biggest ever, though, with a ramp 35.5-feet high and a 12.5-foot loop to crush the previous record of nine feet, nine inches tall. Fittingly, the track was inaugurated with a Ford Mustang Hot Wheels car taking the first run. To support such a massive size, the Hot Wheels track fits into a plywood structure that's bolted together. Beyond just being fun and looking incredibly cool, the stunt was meant to teach kids about mathematics and engineering. Ford Sets World Record for Biggest Hot Wheels Car Track Loop in Support of Take Your Child to Work Day • To help children cultivate an interest in science and engineering, Ford attempted to set a new world record for building the largest Hot Wheels® car track loop as part of this year's Take Your Child to Work Day • Ford Mustang Hot Wheels car started at more than three stories high inside Ford Research and Innovation Center • Old record loop stood at nine feet, nine inches tall DEARBORN, Mich., April 23, 2015 – Ford ran circles around the old Hot Wheels® record loop as part of this year's Take Your Child to Work Day. When the effort was complete, Ford had made a world record attempt with a Hot Wheels car track loop that exceeded 12 feet tall. The world record attempt was the brainchild of Ford dynamometer technician Matt West, who had built increasingly large Hot Wheels loops with his six-year-old son Blade at their home in Monroe, Michigan. The attempt took place in the three-story atrium of the company's Research and Innovation Center in Dearborn in support of Ford's participation in national Take Your Child to Work Day. "It started as part-fun, part-physics lesson with my son at home," said West. "We built one in our playroom, and then built a five-foot- tall loop in our backyard.