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Fiat Chrysler CEO: No plans to sell brands to Chinese

DETROIT — Fiat Chrysler Automobiles (FCA) has no intention of breaking up the company or selling individual brands to China or other parties, the company's chief executive said on Monday at the Detroit Auto Show, adding that the group was counting on its coveted Jeep brand to drive future profits. "We're not going to break up anything," Chief Executive Sergio Marchionne said at a news conference at the Detroit Auto Show. "We have no intention of breaking it up and giving anything to the Chinese." Marchionne said the Jeep sport utility vehicle brand could help FCA double its net profit. FCA's portfolio also includes luxury Maseratis, sporty Alfa Romeos and tiny Fiats. FCA's share price has jumped more than 30 percent this year on a bullish outlook for the auto sector, Jeep growth expectations and speculation that Marchionne's final year at the helm could prompt strategic deals such as spinoffs, technology alliances and disposals. The popularity of the Jeep brand, which is targeting sales of 2 million vehicles this year, has prompted talk it could be spun off from the group, as happened with tractor maker CNH Industrial and supercar group Ferrari, or sold off. Rumors have resurfaced that Guangzhou Automobile Group might be interested in snapping up part of FCA. Marchionne said on Monday that while GAC has partnered to deliver Jeeps to the Chinese market and FCA is talking to the Chinese automaker about helping it enter the U.S. market, "none of these things are designed to impact on the independence of FCA." FCA has often been the subject of merger speculation, especially after its unsuccessful 2015 attempt to tie up with larger U.S. rival General Motors. Its share price jumped to record highs in August after reports of interest from China's Great Wall Motor Co and South Korea's Hyundai. Marchionne said while both Jeep and truck brand Ram are strong enough to exist on their own, "we need to talk about ... what will be left behind." Marchionne said he has recommended to the company's board that the automaker spin off Magneti Marelli, a maker of components for lighting, engines, electronics, suspension and exhausts, to shareholders by the end of 2018. Marchionne confirmed FCA's targets for 2017 and for 2018, including a plan to erase all debt and generate up to 5 billion euros ($6.14 billion) in net cash.

The Apple of the auto industry isn't Tesla, it's Jeep

Whenever Apple is going to have a new product for sale in its stores, the fanboys line up in such great numbers that it's surprising Ticketmaster hasn't figured out a way to capitalize on the multitude of anxious buyers with credit cards ready to go. When Elon Musk talks about a new car being added to the lineup, there is an analogous group of people, and Musk has cleverly set up a model in which people place deposits for their place in line. The number of deposits (two per customer only, it should be noted) for the Model 3 is some 400,000. Because Tesla is a Silicon Valley company that has a highly desirable, highly designed suite of products for which there is demand the likes of which is completely uncharacteristic for the category, it is often compared to Apple. After all, has anyone gotten into line to buy a Windows phone? Do you even remember the Zune? So it must be that Tesla is like Apple. But there is one nontrivial problem with this comparison: Apple sells its products in mass quantity. Tesla, even though it just had its best quarter ever, delivering a record 25,418 vehicles - up 69 percent over the first quarter of 2016 - is still, when compared to the car industry in general, selling a specialized product. No, the automotive brand most like Apple is Jeep. Just as with Apple's quickly identified design language - either for the physical phones and computers or the interfaces for same - there is no mistaking a Jeep. Like Apple's legion of fans, there are people for whom a Jeep is not merely a form of transportation, but a statement about one's way of life. Like the companies that wish they could have designs that are Apple-like and do their utmost to have a similar objects or appearances (sometimes landing them in court, a la Samsung), is there a single automotive company that wouldn't like to have some of Jeep's magic? While there aren't people who are lined up outside of dealerships when a new Jeep goes on sale, there is probably more interest in the forthcoming Wrangler than in the accumulation of interest in a half-dozen other vehicles from other companies. And like Apple, Jeep is a comparative volume play. Last year FCA US LLC delivered 926,376 Jeeps. Walter P. Chrysler and the Dodge Brothers must be spinning at high velocity in their graves, because the U.S. total for Chrysler brand was 231,972, and Dodge was 506,858. The sum of the two - 738,830 - is well shy of Jeep's sales. On a global basis, Jeep sold some 1.4 million units in 2016.

Stellantis reports surprising 2020 results, is 'off to a flying start'

MILAN — Low global car inventories and cost cuts should boost Stellantis's profit margins this year, though a shortage of semiconductors and investments in electric vehicles could weigh on results, the newly-formed automaker said on Wednesday. The forecast came as Stellantis, created by the January merger of Peugeot-maker PSA and Fiat Chrysler (FCA), reported better-than-expected results for 2020 that sent its shares up around 3% in morning trading. "Stellantis gets off to a flying start and is fully focused on achieving the full promised synergies (from the merger)," Chief Executive Carlos Tavares said in a statement. Stellantis is the world's fourth largest carmaker, with 14 brands including Fiat, Peugeot, Opel, Jeep, Ram and Maserati. It said 2021 results should be helped by three new high-margin Jeep vehicles in North America and a strong pricing environment there. The U.S. market has driven profits for years at FCA and starts off as the strongest part of Stellantis. The group's guidance assumes no more significant lockdowns caused by the global COVID-19 pandemic, which shuttered auto plants around the world last spring. Stellantis should also get a lift as its starts to implement a plan aimed at delivering over 5 billion euros a year in savings, without closing any plants. Tavares has also pledged not to cut jobs. But a pandemic-related global shortage of semiconductors, used for everything from maximizing engine fuel economy to driver-assistance features, could hurt business. Auto industry executives have said the shortage should ease by the second half of 2021. Stellantis said its "electrification offensive" could also weigh on results this year. Automakers are racing to develop electric vehicles to meet tighter CO2 emissions targets in Europe and this week Volvo joined a growing number of carmakers aiming for a fully-electric line-up by 2030. Stellantis plans to have fully-electric or hybrid versions of all of its vehicles available in Europe by 2025, broadly in line with plans at top rivals such as Volkswagen and Renault-Nissan, although Stellantis has further to go to meet that goal. The carmaker is targeting an adjusted operating profit margin of 5.5%-7.5% this year. That compares with a 5.3% aggregated margin last year: 4.3% at FCA and 7.1% at PSA excluding a controlling stake in parts maker Faurecia, which is set to be spun-off from Stellantis shortly.