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Chrysler banks $507 million in Q2, trims 2013 earnings forecast

Chrysler has some good news and some bad news. First, profits were up 16 percent over the second quarter of 2012, bringing the Auburn Hills, Michigan-based manufacturer $507 million on the back of strong demand for trucks and SUVs (a recurring theme this quarter, particularly in the US). Q2 revenue was up as well, from $16.8 billion in 2012 to $18 billion in 2013. The bad news is that the Pentastar's overall earnings forecast for net income in 2013 has been trimmed from $2.2 billion to between $1.7 and $2.2 billion, according to Automotive News.
In addition to the adjusted net income forecast, Chrysler tweaked its operating profit from $3.8 billion to between $3.3 and $3.8 billion. This has gone largely unexplained by Chrysler, perhaps hoping the news of a three-percent increase in its transaction prices for Q2 will allow it to sweep this adjustment under the rug.
The star of the show for Chrysler has been its US sales, which saw a 10-percent jump, both bettering the industry average of eight percent and improving over the same stretch of 2012. As with the increase in transaction prices, Chrysler has the new Ram pickup and Jeep Grand Cherokee to thank. Perhaps most worrying from this report, though, is that every brand in the automaker's stable saw an increase in sales... except for the Chrysler brand itself.

Stellantis reports $15B profit in first year of merger

FRANKFURT, Germany — Automaker Stellantis said Wednesday that it made 13.4 billion euros ($15.2 billion) in its first year after it was formed from the merger of Fiat Chrysler Automobiles and PSA Group. The earnings nearly tripled profits compared with its pre-merger existence as two separate companies, as the maker of Jeep, Opel and Peugeot vehicles exploited cost efficiencies from combining the businesses. The result compared to a combined 4.79 billion euros for the separate companies in 2020 before the merger, which took effect on Jan. 17, 2021. Revenue for the combined business rose 14%, to 152 billion euros. CEO Carlos Tavares said the results “prove that Stellantis is well positioned to deliver strong performance" and had overcome “intense headwinds” during the year. Automakers have struggled with shortages of key parts such as semiconductor electronic components and rising costs for raw materials as the global rebound from the worst of the coronavirus pandemic brings more demand. The company said the benefits of the merger were worth some 3.2 billion euros during the year. Mergers can lead to streamlined costs as companies combine functions and spread fixed costs over a larger revenue base. The company accelerated its rollout of battery-powered vehicles, with sales of low-emission vehicles reaching 388,000 — an increase of 160%. Stricter environmental regulations in Europe and China are pushing automakers to roll out more electric vehicles with longer range. Stellantis started production of a hydrogen fuel cell commercial van under its Opel brand in December. Stellantis' other brands include Chrysler, Citroen, DS, Fiat, Maserati, Ram and Vauxhall. Related video: Earnings/Financials Chrysler Dodge Ferrari Fiat Jeep RAM Citroen Opel Peugeot Vauxhall

Only in Japan: Dodge van one-make racing series is a thing

Japan seems willing to embrace a level of automotive insanity that many other places lack. Whether it's 1,200-horsepower Nissan GT-Rs blasting through tight, tree-lined mountain roads or advertisements with dances for the Toyota Prius Plug-in, the country definitely has a unique way of expressing a love for autos. The D-Van Grand Prix might be one of our favorite examples yet of crazy Japanese car culture, because the annual, one-make race at the Ebisu Circuit is exclusively for heavily customized Dodge vans. Like many great things, this wonderfully crazy idea came from a little rule breaking. D-Van Grand Prix organizer Takuro Abe was at a track event for a motorcycle racing school, and vans were used to haul the bikes around. During lunch someone came up with the idea for a race. Ignoring that the big machines weren't actually allowed on the circuit, the drivers headed out. The popularity has just grown since then. These days, the racing vans absolutely aren't the stock machines from the event's inspiration. In addition to stripped interiors and track rubber that you might expect, the list of mods for them is a mile long. For every possible advantage, the racers fit them with things like Brembo brakes, cross-drilled rotors, heavy-duty transmissions, and much more. Seeing vans lumbering around the track is very weird at first, but the racers take the competition very seriously. These folks even employ all sorts of little tricks to coax the most from the machines. This is a fascinating motorsports story, but be sure to turn on the subtitles to understand the interviews with the competitors.