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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.

FCA seeking new trial in Jeep fire case, calls $150M judgement 'grossly excessive'

Fiat Chrysler Automobiles is fighting back after a Decatur County, GA jury ordered the company to pay $150 million to the family of a four-year-old boy that was killed after a 1999 Jeep Grand Cherokee crashed and caught fire. The company is requesting the judge reduce the award, and should Walden's family not agree to the lower sum, that a new trial be held. The Detroit Free Press reports that FCA would be forced to pay $120 million over the death of young Remington Walden, with an extra $30 million being paid to the boy's family. Neither figure sits well with the automaker, though, which called the fine "grossly excessive," and claimed it was in violation of Georgia state law. The judgment stems from FCA's long-running problem with the fuel tanks of certain Jeep models built in the 1990s and 2000s. According to the newspaper, FCA argues that the jury was biased after the Waldens' attorneys played on the their passions and pushed for a big award, saying the wrongful death award was 11 times more than any appeals court has ever upheld. FCA said attorneys for the plaintiffs told the jury to base the settlement on Sergio Marchionne's total compensation, $68 million. FCA also claims in its motion that the young boy's suffering was brief. "A $30-million pain-and-suffering award for what plaintiffs acknowledge was at most one minute of suffering is irrational," the motion, which was obtained by The Detroit Free Press, read. "Where such plainly improper arguments are immediately followed by irrational and stunningly excessive damage awards, there can be no doubt that the jury acted from passion and prejudice." Jim Butler, the attorney for the Waldens, has called the motion "nonsense," although he said the family will accept whatever figure the judge sets.

Ford leads top searched-for car brands on Google in 2014

With less than two weeks until 2014 takes its final bow, anyone and everyone is looking back on the past 50 or so weeks to see how they stacked up. For search giant Google, that means its time to check out its annual Trends report. Besides the most popular search term (the late, great Robin Williams), the most searched for gadget (the iPhone 6) and most searched for disease symptoms (quite worryingly, Ebola took the crown here), we have the most searched for automaker. With the long-awaited sixth-generation of one of America's most iconic vehicles, the Mustang, and a ground-breaking update for the US market's perennial best seller, the F-Series, it should come as no surprise at all that Ford was Google's most searched for automaker in 2014. Jeep captured second place, while Dodge, took third. We suspect introducing a pair of cars with 707 horsepower had something to do with that bronze medal... Scroll down to see the rest of this year's most searched for automakers, and then head into Comments and let us know if you're surprised by any of these. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Featured Gallery 2015 Ford Mustang: First Drive View 55 Photos News Source: Google via AutoGuideImage Credit: Copyright 2014 Drew Phillips / AOL Dodge Ford Jeep Technology