Super Clean, Super Nice No Salt Convertible! on 2040-cars

Auto blog

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.

For his last act, Marchionne will outline an EV/hybrid roadmap this week

MILAN/LONDON — Fiat Chrysler (FCA) boss Sergio Marchionne is expected to outline new plans for electric and hybrid cars in a strategy presentation on Friday, aiming to ensure the world's seventh-largest carmaker remains in the race in the absence of a merger. The 65-year-old will present FCA's strategy to 2022, his final contribution to the company he turned around and multiplied in value through 14 years of canny dealmaking. After failing to secure a tie-up he said was necessary to manage the costs of producing cleaner vehicles, Marchionne needs to show the group can keep churning out profits on its own, even as emissions rules tighten, SUV competition intensifies and worries around his succession abound. Marchionne had long refused to jump on the electrification bandwagon, saying he would only do so if selling battery-powered cars could be done at a profit. He even urged customers not to buy FCA's Fiat 500e, its only battery-powered model, because he was losing money on each sold. But Tesla's success and the need to comply with tougher emissions rules have forced Marchionne to commit to what he calls "most painful" spending. "FCA is way behind rivals in terms of hybrid and electric vehicles and they need to hit the accelerator to convince investors they can close that gap," said Andrea Pastorelli, a fund manager at 8a+ Investimenti. Germany's Volkswagen, Daimler, BMW and U.S. rivals GM and Ford have committed to spending billions of euros each in coming years to try produce profitable cars powered by cleaner fuels. FCA needs to present a clear roadmap, just like Volvo Cars, which ditched diesel from its best-selling XC60 SUV, launched a new electric brand and pledged to shift all brands to hybrid by 2019, a banking source close to FCA said, noting: "The tech divide determines winners and losers in the industry." Marchionne has already said half of the wider FCA fleet will incorporate some elements of electrification by 2022, while luxury marque Maserati will spearhead FCA's electrification drive by making all new models due after 2019 electric. But its plans remain vaguer and less advanced than most big rivals and some investors wonder about the capital required to make vehicles compliant, and what share of spending can go to electrification given FCA's numerous demands.

Huge Canadian sinkhole destroys four-lane road, swallows car

A major thoroughfare in the Canadian capital city of Ottawa was closed after a huge sinkhole opened beneath it. According to the CBC, the sinkhole appeared around mid-morning on Wednesday on Rideau Street near its intersection with Sussex Drive. The sinkhole, which initially formed over an unstable vein of sand, silt, and fractured rock, quickly spread across all four lanes of Rideau Street. A high-pressure natural gas line and a water main were shattered by the road collapse, filling the deep hole with water, gas, and fumes and forcing the evacuation of numerous surrounding buildings. All traffic save for buses and taxis had already been banned from the area due to excavation for a light rail station, but a Chrysler minivan parked along Rideau street fell into the hole as it expanded. Construction workers working in the light rail site evacuated safely once the road began collapsing, and no injuries were reported. Ottawa mayor Jim Watson told The Guardian that there was no sure way to tell how long repairs to Rideau Street would take. "It's a significant sinkhole in the downtown core. It has a major impact on our largest retail shopping center, one of our major hotels as well as one of the busiest intersections and bus routes." This is the second sinkhole to appear in downtown Ottawa in recent years. In 2014, a nearly thirty-foot wide sinkhole caused by excavation for the light rail system opened just a few blocks away from Rideau and Sussex. Watson stated that it is too soon to say whether or not Wednesday's sink hole was related to light rail construction. "We can't confirm whether the tunnel had any impact on the sinkhole or whether it was a water main break or whether it was a leak of some type that destabilized the soil." Watson went on to say that he hoped that city officials would be able to pinpoint the exact cause of the collapse soon. Related Video: News Source: The Guardian, CBC News Auto News Weird Car News Chrysler Minivan/Van sinkhole road