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Fiat Chrysler's Q3 profit boosted by strong North American earnings

MILAN, Italy — Fiat Chrysler Automobiles (FCA) reported a 17 percent jump in third-quarter adjusted operating profit on Tuesday, helped by a strong performance in its key North American market and improving operations in Europe and Latin America. The world's seventh-largest carmaker still makes the lion's share of its profits in North America, so improving, or at least maintaining, its margins there is a key focus. The carmaker reported an 8 percent adjusted operating profit margin in the region, up from 7.6 percent a year ago, despite a drop in sales and shipments. "FCA's profitability in North America remained strong in the quarter despite a weakening market there," a Milan-based analyst said. FCA's profitability compares with an 8.3 percent North America margin reached in the quarter by bigger U.S. rival GM , showing CEO Sergio Marchionne making progress towards his goal of closing the margin gap with GM and the company's other U.S. rival, Ford, by 2018. The company's confirmation of its full-year outlook also pushed shares higher, a trader added. The stock was up 2.8 percent by 1129 GMT, outperforming a 1 percent rise in the European auto index. FCA has been retooling some U.S. factories to boost output of sport-utility vehicles (SUVs) and trucks while ending production of some unprofitable sedans to strengthen profitability as the U.S. car market comes off its peak. The company said a drop in North America shipments due to lower fleet sales and discontinued models was partially offset by higher deliveries of Ram trucks and two models from the Alfa Romeo stable: the Stelvio sport utility vehicle and Giulia sedan. Profitability also improved in Europe, helped by sales of the Stelvio and the new Jeep Compass, and Latin America, while margins at Maserati remained strong at 13.8 percent due to strong demand for its first SUV, the Levante. In a later conference call, investors are looking for hints on the new strategy to 2022 which the company promised to unveil early next year. Chief Executive Sergio Marchionne said earlier this year that FCA would streamline its portfolio and that components businesses, including Magneti Marelli, would be separated from the group, possibly via a spin-off. While FCA confirmed its targets this year, doubts remain about its exposure to a weakening U.S. market, recall costs and potential fines over emissions after it was targeted by European and U.S.

2015 Ram ProMaster recalled for ignition switch issue

The Basics: Ram is recalling a total of 18,121 examples of the 2015 ProMaster with production dates between October 1, 2014, and June 17, 2015. These include 16,114 of them in the US, 1,498 in Canada, 503 in Mexico, and 6 outside the NAFTA region. The Problem: The ignition switch can intermittently lose electrical contact, and this can potentially cause the vans to stall. If the problem occurs, the vehicles might also lose functionality of the airbags, anti-lock brakes, electronic stability control, and instruments. Injuries/Deaths: None reported. The Fix: Dealers will replace the ignition-switch contact holder. If You Own One: FCA filed the recall with the National Highway Traffic Safety Administration on November 25, and it has 60 days to notify owners about the campaign under federal rules. Until the repair, the company says that turning the ignition off and then back on can fix this problem if the switch loses contact. RECALL Subject : Intermittent Loss of Ignition Switch Contact Report Receipt Date: NOV 25, 2015 NHTSA Campaign Number: 15V799000 Component(s): ELECTRICAL SYSTEM Potential Number of Units Affected: 16,114 All Products Associated with this Recall Vehicle Make Model Model Year(s) RAM PROMASTER 2015 Details Manufacturer: Chrysler (FCA US LLC) SUMMARY: Chrysler (FCA US LLC) is recalling certain model year 2015 Ram ProMaster vans manufactured October 1, 2014, to June 17, 2015. The affected vehicles have an ignition switch that may experience an intermittent loss of electrical contact. CONSEQUENCE: An intermittent loss of contact can result in a vehicle stall and/or a partial or complete loss of the air bags, anti-lock brakes, electronic stability control and/or instrument panel cluster. Loss of functionality of these systems may increase the risk of crash and/or increase the risk of injury in the event of a crash. REMEDY: Chrysler will notify owners, and dealers will replace the ignition switch contact holder block, free of charge. The manufacturer has not yet provided a notification schedule. Owners may contact Chrysler customer service at 1-800-853-1403. Chrysler's number for this recall is R64. NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov. Statement: Ignition Contacts November 27, 2015 , Auburn Hills, Mich. - FCA US LLC is voluntarily recalling an estimated 16,114 full-size vans in the U.S.

FCA Drive for Design Ram truck contest winners chosen

Last month, Fiat Chrysler held a 24-hour sketch battle open to anyone in the world willing to design the "wickedest and most outrageous" version of a Ram truck. That flash contest was a sideshow to the main event, FCA's annual Drive for Design competition open to high schoolers in the 10th, 11th, and 12th grades who were this year asked to design a Ram pickup for the future. The automaker's design team judged the entries, led by Ram Truck and Mopar Exterior Design boss Mark Trostle, with outside input from Detroit sculptor Josh Welton. The contest closed on May 1, and the winners have been decided: Job Skandera, a 12th grader from Santa Clara, California took first place with his Ram Magma; Vincent Piaskowski, an 11th grader from Birmingham, Michigan (home of Autoblog's headquarters) earned second place with an electric Ram; third place went to the Ram 1500 Series A by 11th grader Alex David Kirschmann from Auburn Hills, Michigan. Kirschmann clearly has a knack for this since he earned second place in last year's Drive for Design competition. The Ram Magma's name is suggested by the translucent polycarbonate windows that forego traditional tinting for a crystalline red privacy sheen "inspired by volcanic igneous rock." The Magma also showcases multiple light bars stretched across the roof, a UV water purifier system between the cab and bed, and a stove embedded into the tailgate. Thankfully, the feature set includes an adjustable suspension that lowers the cab to mortal levels of ingress. The electric Ram protects its extremities with a lightweight graphene hardcoat, offers side storage outside the bed, more storage under the bed floor, a heavy duty power station tucked into the bed wall, and the sandwiched tailgate can form a two-tier shelf system for organization on the job site. That tailgate gives us some real ideas. The 1500 Series A is Judge Dredd's truck when he leaves his Lawmaster motorcycle at the office. The RamBox storage compartments and retractable tonneau cover would represent sentimental historical touches when he's running errands — and moving everyone out of his way — in Mega-City One. Due to social distancing, the traditional awards ceremony and visit to FCA design HQ to talk with team members had to be canceled.