Tag Archives: fiat Chrysler

California, Federal Fines and extended Warranties and Fixes Cost Fiat Chrysler at Least $800m for Diesel Cheating

Companies and their board of directors may not believe in global warming, but regulators backed by ruinous fines along with alarmed shareholders and customers are making them act as if they do. Continue reading

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Sergio Marchionne Dead at 66

An intense, yet approachable CEO, smitten with black sweaters and Apple products, Marchionne was capable of referring to business theories – some of them wryly his own about, say, the collective madness of the industry over autonomous and electric cars during auto show executive braggadocio, with references to linguistic philosophy, current politics and history during a single press conference. Continue reading

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Oops! Chrysler Group Posts Q1 Loss of $690 Million Because of UAW Buyout. Income, Revenue, Cash Flow Increase

Chrysler Group reported net loss of $690 million for Q1 because of $1.2 billion in charges for the UAW buyout, which allowed Fiat to takeover complete control of Chrysler. Continue reading

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Fiat Buys Out the UAW Equity in Chrysler Group

Fiat S.p.A. through its wholly owned subsidiary, Fiat North America, today completed its previously announced acquisition of all of the UAW VEBA Trust’s equity in the Chrysler Group. This means that Chrysler Group is now a wholly owned subsidiary of Italian Fiat with considerable help from U.S. taxpayers who financed the 2009 reorganization of the bankrupt company. Continue reading

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$507 Million Chrysler Q2 Profit. New Cherokee Sales on Hold!

However, the positive trend is threatened in the second half of the year by the admission by Sergio Marchionne – he had to since it’s material to results under SEC regulations – that the new Jeep Cherokee was not shipping as planned starting in June even though it is in production in Ohio due to an unspecified calibration problem on its 9-speed ZF supplied transmission. Continue reading

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Marchionne Apologizes for Being Irreverent

Fiat CEO Sergio Marchionne has apologized to an organization called One Voice for his quip last January at the North American International Auto Show where he said Alfa Romeo models when re-introduced into North America should have Italian engines. Journalists present laughed it off as being typical of the straight talking executive who uses humor, including self-deprecating humor to make his points. Continue reading

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Chrysler Group Posts 2012 Net Income of $1.7 Billion

Marchionne says he will merge the two groups by 2015. However, he surprised analysts by changing his business plan forecast for Chrysler, slashing free cash flow from $3 billion to only $1 billion for 2014, with 2013 at about half of the $2.2 billion 2012 generated. He needs the cash to develop new products for both Groups while shoring up Fiat’s foundation. Continue reading

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Fiat Group Doubles Q3 Profit to €286 Million. Revenue €951 Million

The Fiat Group in Turin today recorded a Q3 profit of €286 million or $371 million (2011 €112 m) as Chrysler earnings in North America offset losses in Europe. Without Chrysler, Fiat would have lost -€281 million in the quarter. Continue reading

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Chrysler Group Posts Q3 Profit of $381 Million

Chrysler Group today reported a Q3 profit of $381 million, an increase of an increase of 80% from Q3 a year ago, based on revenue of $15.5 billion, up 18% from $13.1 billion. For the first nine months of the year, Chrysler Group (1) posted net revenue of $48.6 billion, up 22% from the same period a year ago, as its recovery from bankruptcy continues. Cash at quarter-end was $11.9 billion compared with $9.5 billion a year ago and $12.1 billion on 30 June 2012. Cash flow for the quarter was a -$65 million compared with -$699 million a year ago. For the first nine months of 2012, Free Cash Flow was $2.5 billion. Continue reading

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EU Car Sales off 7% in January, Fifth Year of Declines?

EU car sales dropped yet again in January by 7.1% compared to a year ago, a troubling trend since car sales have declined for four straight years in the moribund European Union. The latest sales data from ACEA, the trade group of EU automakers, confirm what individual car company financial results have been indicating – the European economy continues to contract, and at rates greater than automakers anticipated as recently as last quarter or the quarter before that.

In total, 968,769 new registrations were recorded in the 26-nation EU region during January, which had on average one more working day than January 2011. Particularly hard hit were France (-20.7% for the second largest market) and Italy (-16.9% for the third largest market), with large negative consequences at PSA Group (-14.9%), Renault Group (-25.2%) and Fiat Group (-16.2 %.)

Germany (-0.4% for the largest EU market) and the United Kingdom (0% or flat for the fourth largest market) remained stable, with beneficial results for the biggest automaker in Europe, VW Group with its commanding 24% market share. Continue reading

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Dodge Dart Debuts Using First Fiat Architecture. More on Way

The U.S. Dart is in many ways similar to the original Ford Focus (C170) that was derived from a European Ford design a decade ago. And Dart faces the same challenges as well. Though bigger than that Focus – a decided plus in North America, and with much more content – it remains to be seen if Dart’s U.S. suppliers can rise to the quality challenge posed by competing small Japanese and Korean cars. Continue reading

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Car Spy – New Chrysler Products based on Fiat Platform

The car caught here is based on Fiat’s compact line, which also includes Alfa Romeo versions. The Alfa Romeo brand will be reintroduced to the U.S. starting in 2013, as part of the Fiat 500 franchise. Fiat dealers in the U.S. only have the 500 to sell until then. Whether the actual Alfa Romeo Giulietta – a four-seat compact makes it is unclear. An Alfa two seater is thought to be the first comeback car. Continue reading

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Ron Bloom Resigns as Assistant to the President for Manufacturing Policy. Was Key Player in Auto Bailouts

Bloom was part of a team headed by Stephen Rattner at the U.S. Treasury Department that was responsible for forcing drastic bankruptcy restructurings and CEO firings at General Motors and Chrysler as they were on the verge of being liquidated in 2009. Continue reading

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Chrysler to Repay Loans with New Debt. Fiat to Up Stake to 46%. Credit Ratings under Review for Possible Downgrade?

Chrysler Group will repay the loans provided from the U.S. Department of the Treasury and the Canadian federal and Ontario governments by June. Continue reading

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European Car Sales Decline in January

For U.S. taxpayers with substantial stakes in Fiat-controlled Chrysler and GM there were uneven results. Chrysler sold a mere 2,353 vehicles in January, down 24%. However, CEO Sergio Marchionne maintains that Lancia can help Chrysler sales by distributing its cars, and Jeep has substantial room for growth.

The Opel/Vauxhall subsidiary of GM posted a rise of 6% to 72,553 vehicles helped by growth in Germany. Opel, with more than 40,000 employees in Europe, lost the owners of GM, including U.S. and Canadian taxpayers more than $1.1 billion in the first three quarters of 2010, with the final results not in yet. Continue reading

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