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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.

Dodge Dart pushed toward the grave with simplified lineup

FCA announced a while back that the Dodge Dart and its Chrysler 200 half-sibling are on the way out due to lack of interest. The 2016 model year will be the Dart's last, and Dodge has just reconfigured the lineup mid-year to lower (relative) pricing and streamline ordering. Streamlined is a nice way of saying there will be fewer choices, with three models (down from five) and limited customization beyond choosing the paint color. The odd thing is that the Dart continues to offer three different engines. And while the prices of the individual models have decreased, the former SE base trim is now gone. That means an early-2016 Dart was available for as little as $17,990, while the late-2016 Dart starts at $18,990. For that sum you get the new base model, the SXT Sport, which replaces the SXT and comes with the 2.0-liter Tigershark four-cylinder (160 horsepower, 148 lb-ft of torque) and a six-speed manual; a six-speed automatic is an available option. Standard equipment includes normal entry-level car stuff, black cloth upholstery, 16-inch wheels, and grille shutters that help improve fuel economy. The SXT Sport can be dressed up with one of three different appearance packages; Chrome adds bright accents to parts including the grille and door handles, Rallye has a black grille and a touring suspension, and the Blacktop package makes pretty much everything on the exterior black and includes a sport-tuned suspension. All three packages come with bigger wheels, too. From there it's on to the new Dart Turbo, for $20,490. It comes with the 1.4-liter turbo four (160 hp, 184 lb-ft of torque) and comes exclusively with a six-speed manual transmission. This is supposed to be the model for enthusiasts, which is how Dodge is selling the switch to manual-only. Ditching the disliked dual-clutch automatic that was previously offered with this engine doesn't hurt. This engine was also used in the former Aero model, as it's the most fuel-efficient in the lineup. The Turbo gets the Rallye appearance stuff and a different hood. At the top is the Dart GT Sport, starting at $21,900. It has the 184-hp, 2.4-liter Tigershark four-cylinder and a choice of six-speed manual or automatic transmission. This is the one with features, including a power driver's seat, the 8.4-inch Uconnect infotainment unit, digital reconfigurable gauges, dual-zone auto climate, keyless start, and a rearview camera. The latter-part-of-2016 Dart will be available in eight colors.

Final Toledo Jeep decision may have nothing to do with city's efforts

Toledo, OH is doing all that it can to keep production of the Jeep Wrangler in its boundaries, but the biggest issue facing the plant may be insurmountable, no matter how desperately the city wants to keep the Wrangler local. The Wrangler is built in a rather interesting manner at the Toledo Supplier Park: Fiat Chrysler only handles the very final assembly of each vehicle, while two other companies, Kuka, a German firm, and Hyundai-Mobis, a member of the sprawling Hyundai empire, produce the body and chassis, respectively. The vehicles are then transferred over to the FCA part of the park, where they're painted and completed. This was, as The Detroit News explains, a convenient arrangement back in 2006 when the supplier park opened. Chrysler, which was still owned by Daimler at the time, arranged for Kuka and Mobis to handle production, saving it a huge sum of money. Both suppliers own their own machinery and buildings and employ their own workers. Now that FCA is a relatively healthy entity, though, there's not a lot of need to be sharing profits with two other companies. "What [FCA boss Sergio Marchionne] would like is to have the advantages of high-capacity utilization, owning that capacity and taking advantage of that for himself versus having a supplier doing some of the things his competitors do internally," David Cole, chairman emeritus at the Ann Arbor, MI-based Center for Automotive Research, told The News. "It really adds another level of complexity to the situation." While Sergio Marchionne is a man that generally gets what he wants, it seems unlikely that either Mobis or Kuka would give up their role quietly. According to Jon Zapf, Mobis North America's chairperson for UAW Local 12, the company "definitely wants to maintain their part of this production process." According to The News, Jeep is likely to announce the location of next-generation Wrangler production in June. Expect to hear much more on this one in the coming months.