2013 Ram 1500 on 2040-cars

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Fiat Chrysler's profit boosted by Ram and Jeep in North America

MILAN/DETROIT — Fiat Chrysler took the market by surprise by sticking to its full-year profit guidance on Wednesday after a strong performance from its Ram pickup truck in North America helped it defy an industry slowdown. Chief Executive Mike Manley, in FCA's first earnings release since a failed attempt to merge with France's Renault, also left the door open to that or other deals. "We are open to opportunity," Manley said on a call with analysts. "I have no doubt why there still would be interest in it," he added, when pressed on what it would take to revive talks with Renault. Manley declined to comment further. FCA last month abandoned its $35 billion merger offer for Renault, blaming French politics for scuttling what would have been a landmark deal to create the world's third-biggest automaker. Manley said a merger was not a must-have and Fiat Chrysler's business plan was strong. The company said it remained confident its adjusted earnings before interest and tax (EBIT) would top last year's 6.7 billion euros ($7.5 billion). Given disappointing forecasts from other automakers this earnings season, FCA's confirmation of the outlook sent Milan-listed shares in the Italian-American automaker, whose other brands include Jeep, up over 4%. A broad-based auto sales downturn has rattled the sector, forcing FCA's competitors — including Renault, Daimler and Aston Martin — to cut their sales forecasts after second-quarter results, while U.S. carmaker Ford gave a weaker-than-expected 2019 profit outlook. Japan's Nissan, a long-term partner of Renault, said it would cut 12,500 jobs by 2023 after its earnings collapsed. In the second quarter FCA's adjusted EBIT totaled 1.52 billion euros, versus analysts' expectations of 1.43 billion euros, according to a Reuters poll. FCA's U.S. shipments were down 12% in the second quarter but the group said that the successful performance of its Ram brand resulted in an enhanced share of the large pickup truck market of 27.9%, up 7 percentage points from last year. Adjusted EBIT margin in North America rose to 8.9% from 6.5% in the first quarter, thanks to strong demand for the heavy-duty Ram and the new Jeep Gladiator pickup. Chief Financial Officer Richard Palmer also said FCA expected to report up to 10% margins in the region in both the third and fourth quarters.

Recharge Wrap-up: Ram 1500 EcoDiesel earns RMAP Truck of the Year, GM earns Energy Star awards

Jas Hennessy & Co, maker of Hennessy Cognac, has taken delivery of 45 electric vehicles from Renault at its headquarters in Cognac, France. The 23 Zoes and 22 Kangoo ZEs are to be used by employees traveling between the company's sites, and replace 80 percent of the company's internal combustion fleet. "For many years now, Jas Hennessy & Co has been actively working to reduce its environmental impact," says Hennessy Operations Manager Marc Sorin. Hennessy also recently bought an electric boat to take visitors across the Charente River to the company's aging cellars. Read more from Renault. General Motors has earned two Energy Star awards from the EPA. The automaker earned the Energy Star Partner of the Year award for Sustained Excellence for efforts in energy efficiency and greenhouse gas emissions. For example, GM has achieved a global reduction of energy intensity by six percent, and has invested $34 million in energy, water and carbon reduction projects at its facilities. GM also earned the EPA Energy Star Climate Communications award for its outreach to employees, customers and stakeholders about energy efficiency and climate change. Read more from General Motors. The 2015 Ram 1500 EcoDiesel has been named Truck of the Year by the Rocky Mountain Automotive Press Association. The Ram truck beat out the Chevrolet Silverado Heavy Duty and GMC Canyon to earn the honors at the Denver Auto Show. The Ram 1500 EcoDiesel boasts a fuel economy of 21 mpg in the city, 29 mpg highway and 24 mpg combined. Ram attributes the truck's efficiency to features like its eight-speed transmission, stop-start system and active aerodynamics. Rocky Mountain Automotive Press Association Names 2015 Ram 1500 EcoDiesel 'Truck of the Year' and 2015 Chrysler 200 'Car of the Year' AUBURN HILLS, Mich., April 8, 2015 /PRNewswire/ -- - Denver-based journalist organization announces the awards at the Charity Preview for the Denver Auto Show - Winners are chosen from a field that includes every significant new car and truck introduced in the last year - Each eligible vehicle is evaluated and voted on by the members of the Rocky Mountain Automotive Press - The 2015 Ram 1500 EcoDiesel, America's most fuel-efficient pickup, earned a 29 mpg rating from the U.S.

EV cost burden pushing automakers to their limits, says Stellantis' CEO Tavares

DETROIT — Stellantis CEO Carlos Tavares said external pressure on automakers to quickly shift to electric vehicles potentially threatens jobs and vehicle quality as producers struggle with EVs' higher costs. Governments and investors want car manufacturers to speed up the transition to electric vehicles, but the costs are "beyond the limits" of what the auto industry can sustain, Tavares said in an interview at the Reuters Next conference released Wednesday. "What has been decided is to impose on the automotive industry electrification that brings 50% additional costs against a conventional vehicle," he said. "There is no way we can transfer 50% of additional costs to the final consumer because most parts of the middle class will not be able to pay." Automakers could charge higher prices and sell fewer cars, or accept lower profit margins, Tavares said. Those paths both lead to cutbacks. Union leaders in Europe and North America have warned tens of thousands of jobs could be lost. Automakers need time for testing and ensuring that new technology will work, Tavares said. Pushing to speed that process up "is just going to be counter productive. It will lead to quality problems. It will lead to all sorts of problems," he said. Tavares said Stellantis is aiming to avoid cuts by boosting productivity at a pace far faster than industry norm. "Over the next five years we have to digest 10% productivity a year ... in an industry which is used to delivering 2 to 3% productivity" improvement, he said. "The future will tell us who is going to be able to digest this, and who will fail," Tavares said. "We are putting the industry on the limits." Electric vehicle costs are expected to fall, and analysts project that battery electric vehicles and combustion vehicles could reach cost parity during the second half of this decade. Like other automakers that earn profits from combustion vehicles, Stellantis is under pressure from both establishment automakers such as GM, Ford, VW and Hyundai, as well as start-ups such as Tesla and Rivian. The latter electric vehicle companies are far smaller in terms of vehicle sales and employment. But investors have given Tesla and Rivian higher market valuations than the owner of the highly profitable Jeep and Ram brands. That investor pressure is compounded by government policies aimed at cutting greenhouse gas emissions. The European Union, California and other jurisdictions have set goals to end sales of combustion vehicles by 2035.