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Fiat Chrysler posts $690M Q1 loss

If there is one thing that should be remembered when looking at quarterly and annual earnings, it's that the headline numbers rarely tell the whole story when it comes to an automaker's health. Chrysler's first-quarter earnings are just such an example.
Yes, the Auburn Hills-based manufacturer lost $690 million, which is quite a large sum of money. The reasons for the loss, according to Chrysler, were "Unfavorable infrequent items," which includes a $504 million payment to rid itself of the debts it took on for prepaying the UAW's VEBA healthcare trust. Chrysler was also hit with a $672 million charge to the UAW, which was part of a deal that allowed Fiat to purchase the remaining shares of Chrysler owned by the VEBA.
Ignoring those one-time deals, the first quarter was quite a successful one for Chrysler. It would have made $486 million if you erased the merger costs, which would have been a year-over-year increase of $320 million. Even more promising is the fact that Chrysler snagged the largest increase in market share of any automaker during Q1 at 1.1 percent, bringing its overall share to 12.7 percent of the US market. Chrysler saw a 30-percent improvement in sales of trucks and SUVs, along with an 11-percent increase in year-over-year sales and a 23-percent increase in revenue, to $19 billion.

Toyota, Ford not interested in FCA merger

Sergio Marchionne will preach the benefits of mergers to anyone who'll listen, but his calls for industry consolidation may be falling on deaf ears. At least, that is, the ears of those who the Fiat Chrysler chief would most like to bend. Not only is General Motors uninterested, but according to The Detroit News, neither are Toyota or Ford. "It's something we would not be interested in," said Toyota's North American chief Jim Lentz, at the groundbreaking ceremony for the new Toyota Technical Center. "At 10 million (vehicles) we have enough scale right now to do what we need to do. There really would be no advantage for us." Toyota isn't the only one unenthused by the prospect of merging with Fiat Chrysler Automobiles. The Detroit News also reports that Ford, though it may yet to have been approached by Marchionne, wouldn't be interested either. "We're not a suitor for FCA," said Ford CFO Bob Shanks. "We don't see that type of opportunity as one that applies to us." With GM, Toyota, and Ford expressing disinterest in Marchionne's merger idea, the FCA chief will likely start looking elsewhere – or look for other ways to compel his primary candidate to reconsider. He may eventually find a partner – more likely in the Far East or within Europe – but it may not take the form of the major player Sergio has hoped for. News Source: The Detroit NewsImage Credit: Bill Pugliano/Getty Chrysler Fiat Ford Toyota Sergio Marchionne FCA merger fiat chrysler automobiles

2016 Fiat 124 Spider to debut this year

Those enthused by the prospect of a nimble little convertible but not enamored with the styling of the latest Mazda MX-5 Miata (shown above) have been eagerly awaiting the arrival of the Fiat version. And now we know it's going to break cover later this year. According to Edmunds, which spoke with the Fiat brand's North American chief, Jason Stoicevich, the Fiat 124 Spider will debut later this year either at the Frankfurt Motor Show in September or the LA Auto Show in December. It is expected to begin reaching dealers in 2016. Fiat has yet to confirm whether it'll offer the 124 in North America, but the chances are looking good. "There is a ton of heritage behind that," Stoicevich told Edmunds. "I think that just kind of puts the bow on the showroom for us and fills it out completely." The roadster would bolster a Fiat US lineup that's made up of versions of the 500: the original hatchback, open-roof 500C, electric-powered 500e, and 500L and 500X crossovers. Fiat offers other models overseas, but is said to be preparing a change in direction even in Europe, aligning its portfolio in two pillars built around the 500 and the Panda. Though the 124 will be based on the MX-5's platform and be built alongside it in Japan, the Italian brand will give the convertible its own bodywork and styling. The Italian version of the MX-5 was originally earmarked to wear an Alfa Romeo badge, but Fiat brass decided that Alfas needed to be developed in-house and built in Italy. The decision was then made to give the Fiat brand the convertible instead, though details on what form it will take and what engines will be offered remain a mystery. Related Video: Featured Gallery 2016 Mazda MX-5 Miata Club View 30 Photos News Source: EdmundsImage Credit: Mazda LA Auto Show Frankfurt Motor Show Fiat Convertible 2015 LA Auto Show fiat 124 spider fiat 124