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Chrysler earns $1.7B in 2012, revises product plans for US

Hot on the heels of Ford's earnings announcement for the year that was, Chrysler today reported a 2012 net income of $1.7 billion, up substantially from the comparatively minuscule $183 million profit earned in 2011 when it repaid its US government loans.
Chrysler's good year ended with an excellent fourth quarter that saw net income rise 68 percent from $225 million in 2011 to $378 million. Where are all those extra earnings coming from? Market share, which Chrysler saw increase to 11.4% last year on sales of 1.65 million vehicles. In fact, the Auburn Hills, MI-based automaker out-paced the industry's market growth of 13 percent last year with sales up 21 percent for the year.
The company also revealed an updated product plan for its Chrysler Group and Fiat brands that looks all the way out to 2016. It's an updated version of the plan introduced in 2009 shortly after Fiat took control of the American automaker, and includes such new additions as an Alfa Romeo model, likely the 4C, to be introduced in the US this year, as well five more Alfa models by 2016. Likewise, Fiat will be growing by an additional seven models in the coming few years.

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.

Alfa Romeo will be expanding its lineup beyond the Tonale

Last night, speaking with the press, Senior Vice President and Head of Alfa Romeo North America Larry Dominique gave us an idea of the Alfa lineup in the near future. The brand will be expanding its offerings, but not by too much. Alfa will eventually have five key models. It will have two offerings in the C-segment (Tonale-size), two offerings in the D-Segment (Giulia/Stelvio-size) and one in the E-segment (larger than Giulia/Stelvio). And as implied by our size clarification, we already know what most of those are, with the Tonale taking the C-segment SUV slot, and the Giulia and Stelvio for the D-segment. Dominique said the second C-segment vehicle would be something more car-like than the Tonale, though he wouldn't commit to saying it would specifically be a sedan. So it's possible it could be some kind of hatchback or maybe a coupe-like SUV. He was more vague about the E-segment vehicle. Considering the car market, some kind of SUV would seem most likely. As previously reported, this E-segment machine will arrive in 2027 with a wide range of electric powertrains from 300 to 1,000 horsepower. All of these new models will be fully electric. That includes the next-generation Giulia and Stelvio. The Tonale won't be going completely electric just yet, but it seems reasonable to assume a new generation model will be. Dominique noted that the Tonale, which is only offered with a plug-in hybrid in the U.S., is a good way to start introducing both dealers and customers to the idea of electrified Alfas. Apparently these five segments are the limit for Alfa for the time being. Dominique said that those models will cover more than 80% of premium buyers, and Alfa is trying to be "efficient" with how it covers the market. So don't expect the myriad bodystyles and niches from German brands such as BMW and Mercedes. There is one possible exception: a sports car. Dominique said that they're always interested in a sports car or halo product. He wouldn't commit in any way to such a product, though. With that being said, there's already been one teaser for something that might be just such a special sports car, maybe called 6C, a few weeks ago. We doubt that Alfa will launch a sports car that will stick around like the 4C, it will probably just be limited production cars that can be sold out quickly. Related video: A Night With Giulia