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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.

Jeep CEO a fan of pickup redux

The idea of a Jeep pickup is a hardly a new concept. After all, putting a bed on the company's rugged off-roaders goes back to the '40s, not to mention the more recent Cherokee-based Comanche. There's a very slim chance that a truck could return to the lineup down the line if brand CEO Mike Manley gets his wish. "I remain a big fan of a Jeep pickup. I think we have history that says it belongs in our portfolio," Manley said to The Detroit News. However, there's no need to get any hopes up soon, because a truck doesn't get any mention in the brand's five-year plan. That puts the earliest possible introduction around 2019. Even Manley is tempering expectations. "At this moment and time, I have higher priorities. That doesn't mean to say that we don't work on it, we're not looking at it," he said to The Detroit News. The most likely candidate to support a future Jeep truck is the next-gen Wrangler, according to The News. The rest of FCA's pickups and SUVs are running at capacity, which makes slipping in another variant difficult. However, the future Wrangler is heavily rumored to get an expanded production facility in Toledo, OH, which could make things possible. Anonymous FCA insiders confirmed to Autoblog that the next-gen Wrangler would be offered with a 3.0-liter EcoDiesel V6 and eight-speed automatic. It's also reportedly using solid axles at the front and rear, a fixed windshield and an aluminum body. That could make for a very fun and practical off-roader. If reading all of this speculation gives you a twinge of deja vu, it should. After the Jeep Gladiator concept (pictured above), there were years of speculation about the brand bringing the pickup back. Even then the plan was for a compact truck to tackle that hole in the segment. It was even believed that the project had a green light for production seemingly with Sergio Marchionne's blessing. Then things were pushed back, and last year, the idea was officially quashed. Related Video:

FCA fibbed on sales according to internal report

Following last week's news that Fiat Chrysler Automobiles (FCA) is under investigation by the Department of Justice and Securities and Exchange Commission for allegedly fudging sales figures, a new report in Automotive News says an internal investigation at FCA uncovered misreported sales. According to the AN story, 5,000 to 6,000 vehicles from various FCA brands were reported sold by dealers, but no customers existed for those cars. FCA sales chief Reid Bigland has already put a stop to the practice. One potential reason for the practice was to maintain the company's month-to-month sales increase streak, currently at 75 months. In April, FCA added a lengthy disclaimer to its sales announcements: "FCA US reported vehicle sales represent sales of its vehicles to retail and fleet customers, as well as limited deliveries of vehicles to its officers, directors, employees and retirees. Sales from dealers to customers are reported to FCA US by dealers as sales are made on an ongoing basis through a new vehicle delivery reporting system that then compiles the reported data as of the end of each month. "Sales through dealers do not necessarily correspond to reported revenues, which are based on the sale and delivery of vehicles to the dealers. In certain limited circumstances where sales are made directly by FCA US, such sales are reported through its management reporting system." FCA did not provide comment to Automotive News. Click through for the full story and more details. Related Video: Earnings/Financials Government/Legal Chrysler Dodge Fiat Jeep RAM sales Sergio Marchionne FCA USDOJ reid bigland