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FCA profits surge in second quarter

Fiat Chrysler Automobiles gave the cash register a beating in the second quarter, improving its net profit to 333 million euros ($364M US), which is a 263-percent jump over its reported Q1 profit of 92 million euros ($108M US). At the same time, FCA improved its global profit margin to 7.7 percent. Compared year-over-year, in Q2 2014 FCA reported net profit of 197 million euros making this year's Q2 a 69-percent increase, and profit margins a year ago were 4.9 percent. The two big factors for this increase are strong NAFTA sales and Jeep. In the US alone, Jeep sold 222,940 units in Q2 this year, a jump of almost 20 percent over the same period last year. Revenue in the NAFTA region totaled $18.8 billion, adjusted earnings before interest and taxes were $1.45 billion, both of those numbers more than doubling compared to 2014. The vastly better numbers come on marginally more global sales, 1,181,000 units sold in Q2 2014, 1,193,000 units sold in the same span this year. In the US, FCA began charging dealers one-percent more for vehicles to up the margins, a move that helped boost its US margin from 4.1 percent a year ago to 5.8 percent the first half of this year. The company is holding steady on its guidance of global deliveries at 4.8 million and its net profit guidance at $1.1 to $1.3 billion. It has increased its adjusted outlook for the year to $120.5 billion in revenue, and EBIT to "over $4.93 billion." News Source: Automotive News - sub. req.Image Credit: AP Photo/Carlos Osorio Earnings/Financials Chrysler Fiat Jeep FCA

Buyers ditching expensive European sedans to buy expensive American trucks

The New York Times ended the automotive week with a story that adds numbers and context to a range of other stories, from the crossover craze to the increasing median price of a new car to ever more grandiose pickup trucks. The NYT piece reveals that the shift to larger vehicles isn't merely about the average U.S. buyer swapping the midsize sedan for a Ford Edge. Luxury buyers are migrating from plush sedans to plush SUVs and trucks that creep close to six-figure prices, and the Detroit Three are running Treasury presses because of it. From 2013 to 2017, the truck category — everything from pickups to minivans — climbed from 30 percent of the market to 41 percent. In January of this year, trucks claimed 66 percent of new vehicle sales. At the milk-and-honey end of profits, GMC alone accounted for 11.3 percent of all vehicle sales over $60,000, not just trucks. That puts the luxury truck maker behind Mercedes-Benz and Ford, The Blue Oval's feasting on Lariat, King Ranch and Raptor versions of the F-150, which make up more than half of that pickup's sales, putting it ahead of Chevrolet, Porsche and Lexus on the high-dollar sales list. The average transaction price of a GMC in Denali trim last year was $56,000; it's easy to see why, when one dealer told the NYT he just swapped a 2012 BMW 550i for a $71,000 GMC Sierra Denali. That truck starts at $52,900. The NYT started its story with a buyer who took home a Ford Raptor instead of an Audi A6, and optioned that $50,020 Ford Raptor close to $80,000. Over at Lincoln, the new $72,055 Navigator — the one so popular that Ford will increase production — crossed hands for an average sale price of $77,000 in January. And a Jeep dealer told the NYT that the two $93,000 Trackhawks he had on his lot "won't be here more than a few weeks." While trucks head up in sales volume and price, cars are headed so viciously in the opposite direction that "the Detroit Three and even some foreign manufacturers acknowledge they are now losing money on many of the cars they sell." So ... get ready for a lot more crossovers and trucks. Related Video: Find out what vehicle is right for you. Give our Car Finder tool a try.

10 Facts about the 2018 Jeep Wrangler

The 2018 Jeep Wrangler is here. It debuts this week at the Los Angeles Auto Show and it's going on sale in January. After years of anticipation, it's finally reality. Here's our complete First Look, but to break it down further, here's things you'll find curious, cool, absolutely necessary, or just plain interesting. – The 2018 Jeep Wrangler (JL) will be sold concurrently during 2018 as inventory is moved out. This means you might be able to get a decent deal on the outgoing model, the JK. It gets a little confusing since the JK and the JL will both be 2018 models, which suggests the JK sell-down might take awhile. Mike Manley, Jeep boss, defended the strategy during a briefing in Auburn Hills, and noted it's somewhat common across the industry. – The doors: They lift out and have handles so you don't drop them. There's also half-doors that will be offered in 2019. Doors weren't standard on Wranglers until the early 1980s. – There are multiple trims. The two-door comes in Sport, Sport S or Rubicon. The Unlimited is Sport, Sport S, Sahara or Rubicon. Expect more to come. – The EcoDiesel arrives in 2019. This could be interesting. Jeep says it's in response to consumer demand, and it could be a differentiator from the Ford Bronco or other utes looming on the horizon. The V6 is the same engine from the Ram and Jeep Grand Cherokee EcoDiesel models. In the Wrangler, it pumps out 260 horsepower and 442 pound-feet of torque. – The Sky One-Touch power top is cool. With a touch of a button, the canopy of the roof scrolls back. Perfect for the urban or actual jungle. It's offered on Rubicon and Sahara four-door variants. – What they didn't do: The speculation surrounding the Wrangler's future hit a fever pitch in 2015, and most of rumors didn't pan out. It's still built in Toledo, Ohio and it's still body on frame. – Some of the rumors were (kinda) on point. Aluminum was used, fairly extensively. The doors, door hinges and front fenders are aluminum. The rear swing gate is magnesium. No one was speculating on that one. – The badges are cool, and Wrangler enthusiasts will love them. There's one on the swing gate that harks back to the Willys predecessors and offers cool stats, like the fording depth of 30 inches. There's also a silhouette on the shifter and the steering wheel is meant to conjure the image of the Y-shaped ones on military vehicles. You kind of need to squint for that one, but there's plenty of other Easter Eggs.