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10 automakers shack up in Detroit hotel to talk Takata airbags

Since Takata has decided not to take the lead concerning potential issues with its airbag inflators, the automakers have. Perhaps that's unsurprising, since it's the automakers, not Takata, that will take a beating on the dealership floor if consumers decide its models are a health hazards. The Detroit News reports that Toyota, Honda, General Motors, Ford, Chrysler, Mazda, BMW, Nissan, Mitsubishi and Subaru met in a hotel conference room near the Detroit Metropolitan Airport last week to sort out a way to understand the technical issues involved. So far, faulty airbag inflators have been ruled the cause of five deaths and 50 injuries around the world, but neither Takata nor investigators understands exactly why the inflators are malfunctioning. The National Highway Traffic Safety Administration recently asked Takata to issue a national recall, Takata declined, citing a minuscule failure rate and the fact that it's still investigating the issue. Toyota and Honda then made an industry-wide appeal for "a coordinated, comprehensive testing program" that would pinpoint the problem inflators and get them replaced, and that's what the Detroit meeting was about. Numerous issues, however, will make this a long row to hoe: simply getting the parts to replace the nearly 20 million inflators in cars recalled around the world so far - even working with other suppliers - will take a years, but more importantly, no one knows if the replacement inflators currently being installed will suffer the same issue. Answers will hopefully come quickly with Takata, the ten automakers and NHTSA all independently investigating the problem.

Fiat Chrysler's Q3 profit boosted by strong North American earnings

MILAN, Italy — Fiat Chrysler Automobiles (FCA) reported a 17 percent jump in third-quarter adjusted operating profit on Tuesday, helped by a strong performance in its key North American market and improving operations in Europe and Latin America. The world's seventh-largest carmaker still makes the lion's share of its profits in North America, so improving, or at least maintaining, its margins there is a key focus. The carmaker reported an 8 percent adjusted operating profit margin in the region, up from 7.6 percent a year ago, despite a drop in sales and shipments. "FCA's profitability in North America remained strong in the quarter despite a weakening market there," a Milan-based analyst said. FCA's profitability compares with an 8.3 percent North America margin reached in the quarter by bigger U.S. rival GM , showing CEO Sergio Marchionne making progress towards his goal of closing the margin gap with GM and the company's other U.S. rival, Ford, by 2018. The company's confirmation of its full-year outlook also pushed shares higher, a trader added. The stock was up 2.8 percent by 1129 GMT, outperforming a 1 percent rise in the European auto index. FCA has been retooling some U.S. factories to boost output of sport-utility vehicles (SUVs) and trucks while ending production of some unprofitable sedans to strengthen profitability as the U.S. car market comes off its peak. The company said a drop in North America shipments due to lower fleet sales and discontinued models was partially offset by higher deliveries of Ram trucks and two models from the Alfa Romeo stable: the Stelvio sport utility vehicle and Giulia sedan. Profitability also improved in Europe, helped by sales of the Stelvio and the new Jeep Compass, and Latin America, while margins at Maserati remained strong at 13.8 percent due to strong demand for its first SUV, the Levante. In a later conference call, investors are looking for hints on the new strategy to 2022 which the company promised to unveil early next year. Chief Executive Sergio Marchionne said earlier this year that FCA would streamline its portfolio and that components businesses, including Magneti Marelli, would be separated from the group, possibly via a spin-off. While FCA confirmed its targets this year, doubts remain about its exposure to a weakening U.S. market, recall costs and potential fines over emissions after it was targeted by European and U.S.

Jeep sets all-time sales record in 2012

Last year was good to Jeep. Chrysler has announced its trail-rated brand set an all-time global sales record in 2012 by moving 701,626 units. That number easily surpasses the previous record set in 1999 when Jeep sold 675,494 models. All told, the brand saw a 19-percent sales increase worldwide over 2011, and much of that swell can be traced directly to the Wrangler. While the Grand Cherokee led Jeep sales, the Wrangler posted record numbers both globally and within the US, moving 194,142 and 141,669 units in each market, respectively.
Meanwhile, the Compass beat its previous global sales record with 103,321 units rolling off of dealer lots. In the US, Jeep sold 62,010 Patriot units, breaking that model's previous record as well. Jeep's impressive performance in 2012 marks the second year in a row the brand has seen double-digit percentage sales increases. Check out the full press release below.