1997 Jeep Cherokee (red) Four Door on 2040-cars

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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.

Video charts evolution of Jeep from military vehicle to SUV powerhouse

Here's a fun new video from our car-obsessed friends at Donut Media. It shows the evolution of the iconic Jeep from its World War II roots to the forthcoming 2019 Scrambler pickup in a little over two minutes. Using illustrations and audio of Jeep engines and broadcast advertising spots, it's a fascinating look at the common traits that have persisted over more than 75 years and changing consumer preferences. Three companies originally responded to the U.S. Army's request in 1940 for proposals to make a quarter-ton "light reconnaissance vehicle" tailored to its specs — Bantam, Ford and Willys. The video starts by showing all three early contenders — the Bantam Reconnaissance Car, Ford Pygmy and Willys MB, which was based on the Willys-Overland "Quad" prototype, named for the 4x4 system it utilized. Willys eventually won the contract in 1941 to build 16,000 revised MB models for American and Allied forces. Willys would trademark the Jeep name in 1945 with its CJ-2A, a Civilian Jeep geared toward farmers. As the video shows, Jeep really started to diversify its body styles and colors in the 1970s and '80s under the ownership of American Motors Corp., which purchased the money-losing Jeep brand in 1970 from Kaiser-Jeep, which itself had acquired the brand from Willys in 1953. The '70s brought models like the CJ-5 Renegade and CJ-5 Laredo, and the video includes updates including the second-generation Wrangler Unlimited in 2004 and the Wrangler-based Scrambler pickup. Chrysler purchased Jeep from American Motors in 1987, shortly after the debut of the Jeep Wrangler, and has managed to hold onto the brand and ride it to success despite its own bumpy ownership trials and tribulations since then. Despite the many owners over time, Jeep has maintained its headquarters all along in Toledo, Ohio.

2014 Jeep Cherokee starting price set at $22,995*

Love it or hate it, the 2014 Cherokee is on its way to a Jeep showroom near you this fall. Today, Chrysler announced the different trim levels, features and pricing for its new compact utility with a starting price of $22,995 (*not including $995 for destination), which is $400 less than the 2012 Liberty it ostensibly replaces.
Available in four trim levels - Sport, Latitude, Limited and Trailhawk - the new Cherokee will come standard with Chrysler's 2.4-liter Tigershark inline four-cylinder engine with the upper three levels offering the option of the company's 3.2-liter Pentastar V6. The base Sport is your typical entry-level model, featuring equipment including manual cloth seats and black exterior mirrors and door handles, but it also has a five-inch Uconnect media center, LED taillights and 10 standard airbags. Stepping up from the Sport model, Latitude and Limited trims bring increasing levels of luxury starting at $24,495 and $27,995, respectively. All three of these trims are front-wheel drive in standard configuration and offer varying versions of Jeep's Active Drive four-wheel-drive system.
The range-topping $29,495 Cherokee Trailhawk (shown above) comes standard with four-wheel drive and numerous upgrades to earn Jeep's Trail Rated fender badge. These changes include a unique design that adds an off-road suspension with taller ride height giving more aggressive approach and departure angles, underbody skid plates, distinguishing exterior design elements and a seven-inch, reconfigurable instrument gauge cluster similar to what it found in high-trim Dodge Dart models. Scroll down for a full breakdown of the 2014 Cherokee pricing and trim levels, and let us know what you think of the model's pricing and equipment in Comments.