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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.

2018 Jeep Wrangler First Drive Review | Improving an Icon

TUCSON, Ariz. — We crawled, with the lightest possible touch of the accelerator pedal, over a boulder-strewn mountain peak just outside of Tucson. We'd been driving for a few hours already, through city streets, along the highway, through twisty stretches just outside of Saguaro National Park. But it wasn't until we were pointed skyward, at such a severe vertical incline that we could only barely make out the hands of the trail guide ahead, that we knew Jeep had nailed the 2018 Wrangler redesign. That light-bulb moment was punctuated by the screeching steel impact of a skid plate along the jagged edge of a boulder. There's just something that feels right about a vehicle designed with purity of purpose. Leave the one-size-fits-all approach to the midsize crossover; stop attempting to be all things to all people like the midsize sedan. The problem with narrow-minded vehicles, though, is that they all require some sort of significant compromise to live with on a daily basis. With the latest version of the iconic Wrangler, Jeep set out to banish as much compromise as possible. Smoothed-out corners and lightweight materials improve efficiency, a range of engine choices opens the envelope to a larger swath of buyers, and big infotainment screens and backup cameras make the 2018 Wrangler easier to live with than ever before. But that essential purity of purpose remains intact. The latest Wrangler is better in every way than its predecessor, a fact that rings true no matter what type of terrain you're driving on. A casual observer may not notice the subtle exterior tweaks made to the 2018 Wrangler, codenamed JL, over the JK model it replaces. The round headlights, LED units on higher-end models, now cut into the outer two vertical grille slats, which are canted back just enough to make a difference in the wind tunnel. The windshield, too, is swept back further than ever before, but not so much that it messes up the Wrangler's timeless design. Hood and door latches are still externally bolted to the body — crucially allowing the doors and windshield to be removed or folded down for the pinnacle of open-air motoring — like little lumps of clay the designer forgot to smooth out. Vents in the front fenders reduce underhood pressure and keep the hood from writhing about at speed as it did on Wrangler models in the past. So picky are Wrangler customers that Jeep's decision to move the turn signals ignited a thousand threads on internet forums worldwide.

FCA issuing software update for 1.4M vehicles to prevent hacking

In the wake of a Jeep Cherokee being hacked remotely while on the road through its Uconnect infotainment system, FCA US is now issuing a software update for 1.4 million vehicles in the United States. Affected customers will receive a USB stick in the mail with the improved version; owners can check this website to see if their cars are affected. A large variety of models with FCA's 8.4-inch touchscreen infotainment system are affected. They include the 2015 Chrysler 200, 2015 Chrysler 300, 2015 Dodge Charger, and 2015 Dodge Challenger; 2013-2015 Dodge Viper; 2013-2015 Ram 1500, 2500, and 3500; 2013-2015 Ram 3500, 4500, and 5500 chassis cab; 2014-2015 Jeep Grand Cherokee and Cherokee; and 2014-2015 Dodge Durango. According to FCA in its announcement, the new software "insulates connected vehicles from remote manipulation." As of July 23, the company also "fully tested and implemented within the cellular network" additional security to prevent access to many of a vehicle's systems. FCA US says that it's conducting this campaign out of an abundance of caution and disputes the notion that there's a defect with these vehicles. Beyond the demonstration of the hack in the Cherokee, the automaker says that it's unaware of any other reports of these attacks actually happening. Related Video: Statement: Software Update July 24, 2015 , Auburn Hills, Mich. - FCA US LLC is conducting a voluntary safety recall to update software in approximately 1,400,000 U.S. vehicles equipped with certain radios. The recall aligns with an ongoing software distribution that insulates connected vehicles from remote manipulation, which, if unauthorized, constitutes criminal action. Further, FCA US has applied network-level security measures to prevent the type of remote manipulation demonstrated in a recent media report. These measures – which required no customer or dealer actions – block remote access to certain vehicle systems and were fully tested and implemented within the cellular network on July 23, 2015. The Company is unaware of any injuries related to software exploitation, nor is it aware of any related complaints, warranty claims or accidents – independent of the media demonstration.