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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.

FCA's shifter fiasco proves novel gear selectors are a bad idea

What's wrong with PRNDL? Why are automakers trying to overly complicate the simple task of selecting gears? If there's any lesson to learn from the recent news that NHTSA is investigating 853,000 Fiat Chrysler vehicles over its problematic gear selectors, it's that the trend of fancy shifters needs to stop. Now. Last year, NHTSA opened an investigation into Jeep Grand Cherokee models, and has now expanded this probe to include the 2012-14 Chrysler 300 and Dodge Charger. The problem? The shifter – assembled by ZF – is confusing for many drivers. "Testing ... indicates that operation of the (electronic) shifter is not intuitive and provides poor tactile and visual feedback to the driver, increasing the potential for unintended gear selection," a NHTSA document states. More than 100 crashes and over a dozen injuries are linked to this problem, according to The Detroit Free Press. To us, the problem isn't just limited to FCA. These unnecessarily novel gear selectors are spreading like wildfire across the industry. Honda and Acura use a weird pushbutton setup. Lincolns have buttons on the dashboard. Jaguar's shifter electronically raises out of the center console. Mercedes uses a stalk with up-for-Reverse, down-for-Drive, push-for-Neutral arrangement. And what the hell is BMW thinking with its M cars? FCA has since abandoned the confusing shifters in question. The 300, Charger, and Grand Cherokee now use the rotary shift dial that's quickly proliferating across the company's brands. Simplistic gear selectors might not be sexy, but no one ever complained about not being able to find the right gear in a Hyundai Sonata. What's most interesting is that this NHTSA investigation could push FCA – and possibly other automakers – to redesign vehicle functions that otherwise operate as designed. Just because most people will never have a problem putting a Dodge Charger in Reverse doesn't mean there isn't a flaw with the design. But perhaps a more simplistic solution – good ol' PRNDL – would have prevented these issues from the start. Related Video: News Source: The Detroit Free PressImage Credit: Copyright 2016 AOL Government/Legal Chrysler Dodge Jeep FCA shifters

Chrysler recalling over 200k vehicles across its brands

With more than 200,000 units across six separate recalls and almost all of its brands, it appears that Chrysler has officially jumped headfirst into the recall pool this month. The National Highway Traffic Safety Administration has issued three official recalls for the automaker, and The Detroit News is reporting that the automaker itself has announced three more.
The biggest of the recalls applies to about 120,000 Dodge Charger, Dodge Challenger and Chrysler 300 models for 2011 and 2012 due to faulty wiring harnesses for the seat-mounted side airbags, which could lead to these airbags not deploying in the event of a crash. A little more than 60,000 two-wheel-drive versions of the 2007-2008 Dodge Nitro and 2008 Jeep Liberty SUVs are being recalled due to a heat shield that could cause the driveshaft to break, which if that isn't bad on its own, could then hit underneath where the airbag sensor is mounted, causing the airbags to deploy. Wrapping up NHTSA's recall notices, about 20,000 Jeep Patriot and Jeep Compass models for 2012 are also being recalled due to a problem with the fuel tank transfer tube that could lead to the vehicle stalling. The LX car recall campaign is going into effect this month, while the other two will start next month - all three notices are posted below.
In addition to the official NHTSA recalls, The Detroit News is also reporting that Chrysler is recalling more than 16,000 Ram trucks and a small number of Dodge Dart sedans. Around 6,500 2013 Ram 1500 trucks will be recalled due to an improper adjustment of the parking brake cable from the factory, while 7,000 Cummins-powered 2013 Ram Heavy Duty trucks are being recalled due to an engine cover that does not have as much heat resistance as it is supposed to. Finally, a total of 46 Dodge Dart sedans are being recalled due to a problem with the brake calipers and/or parking brake.