No Reserve! Limited Loaded Van Minivan Southern No Rust! Clean *caravan T&c on 2040-cars

Auto blog

Chrysler names six new board directors

Executives may call the shots day-to-day at the world's leading automakers - much as they do at any other corporation - but the ultimate decision-making body remains the board of directors. And Chrysler has just named six new members to its board.
The appointments include Hermann Waldemer, the former CFO of Philip Morris International - the tobacco giant whose Marlboro brand has funneled untold billions into Ferrari as the Scuderia's title sponsor for decades, and on whose board Fiat-Chrysler CEO Sergio Marchionne sits. Waldemer replaces Doug Steenland, who came to the Chrysler board after Northwest Airlines (at which he served as CEO) merged with Delta, and whose term on the board expired just days ago.
In addition to the Waldemer appointment, Chrysler has expanded its board with five more seats, all filled by existing group executives. Among them are Reid Bigland (head of US and Canadian sales and of the Ram truck brand), Fiat general counsel Giorgio Fossati, human resources director Michael J. Keegan, Jeep CEO Michael Manley, and group CFO Richard Palmer.

Buy Ford and GM stock and make 5%

Want to make a five-percent return when 10-year treasuries are paying around two percent? Ford (F) and General Motors (GM) have solid balance sheets, strong cash flow, solid earnings, and growing markets. By all accounts, they are smart investments. But the market is down on these stocks. Why? Some of the stupid excuses include: They are cyclical companies The Detroit 3 have lost 3.5 million in sales since 2000 The world economy is shaky GM recently filed for bankruptcy Their markets have peaked They haven't changed their ways Let's take these criticisms one by one: They Are Cyclical Companies Yes, they are cyclical. Every company is cyclical. Every industry is cyclical. Some more than others, but not every company is immune from swings in the market. Banks used to be 'non-cyclical' leader, not anymore. Airline stocks are just as cyclical as auto stocks, yet they are trading at multiples greater than the auto industry. Why? And what accounts for the irrational stock price for Tesla (TSLA)? At least Ford (F) and General Motors (GM) make money and have positive cash flows. In fact, both companies have a net positive cash position. They have more cash on hand than liabilities. Auto sales in the United States hit a record 17.5 million vehicles in 2015. During the Great Recession, Ford (F) and General Motors (GM) cut their break even points to 10 million vehicles per year. Anything above an annual U.S. volume of 10 million vehicles is profit. And what a profit they make. Sales of Ford's F-150 continues to be the best-selling vehicle in the United States for over 30 years. Detroit 3 Have Lost 3.5 million in Sales Since 2000 Automotive News reports General Motors (GM), Ford (F) and Chrysler (FCA) have lost a combined 3.5 million vehicles sales since 2000. So how can they be making more money? Two big reasons – Fleet Sales and the UAW. Fleet Sales The Detroit 3 used to own car rental companies to keep their factories running. Ford owned Hertz (HTZ), General Motors owned all of National Car Rental and 29 percent of Avis, and Chrysler, the forerunner to Fiat Chrysler (FCA), used to own Thrifty Car Rental and Dollar Rent-A-Car. The Detroit 3 owned these rental companies to have a place to sell their bad product and keep their factories running. These were low margin sales, and in many cases, were money losers for the Detroit 3. They no longer own auto rental companies.

Marchionne: Midsize pickup still not in the cards; Ram 1500, Jeep Wrangler could use aluminum

During the Fiat-Chrysler briefings on Tuesday, Reid Bigland, head of Ram Trucks, outlined the new product plans for his brand, including confirmation that an all-new light-duty Ram 1500 will launch in 2017. From there, discussions spun off in two directions, with the main questions being: will Ram build a midsize pickup? And, following Ford's move to extensively use aluminum in its new 2015 F-150, will Chrysler be using this weight-saving material for the next round of its fullsize truck, as well?
"I think there is room for a Ram 1000," Fiat-Chrysler CEO Sergio Marchionne (pictured above) told members of the media, saying this is a conversation the automaker has been having internally for several years now. "We've tried this ... we've actually taken it to clinics," Marchionne stated, adding that the "response has been lukewarm."
"I have better use of aluminum in this house than a pickup truck." - Sergio Marchionne