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More Products, More Volume, Bigger Margins: FCA Lays Out Aggressive, 5-Year Growth Plan

Morning presentation outlines plans for Jeep, Ram, Maserati and Alfa Romeo brands.

by on Jun.01, 2018

The Ram TRX will be among the new models FCA will bring out over the coming five years.

(This story has been revised to update plans for Jeep’s pickup and a midsize pickup from Ram that, CEO Marchionne now says will come to the U.S. market.)

In a sweeping presentation designed to give analysts, investors, media and potential buyers a good look at its future, Fiat Chrysler Automobiles executives are spending a day detailing their plans for the company and its various brands.

At the midway mark, as they break for lunch, they’ve already lifted the kimono far enough to show what’s coming for the Jeep, Ram, Maserati and Alfa Romeo brands and, in a nutshell, it can be summed up as more products targeting lots more volume and much bigger margins.

Breaking News!

The new five-year plan will be the last crafted under the guidance of Sergio Marchionne, the 65-year-old executive who helped pull off the pairing of two struggling manufacturers to form Fiat Chrysler Automobiles. His third five-year plan, Marchionne stressed that “The true finish line is the one always yet to come.”

(more…)

Trump Slaps Tariffs on Canada, Mexico and EU

All impacted moving to retaliate.

by on May.31, 2018

President Donald Trump implemented tariffs on Canada, Mexico and the European Union.

The Trump administration moved to raise tariffs to 25% on steel and aluminum from Mexico, Canada and the European Union, all of which promptly moved to retaliate against the U.S. raising the prospects of a trade war.

The Toronto Globe and Mail reported that the Canadian government had already prepared a list of goods on which it would be raising tariffs and the Mexican government also announced tariffs on American-made products.

Global News!

The European Union is expected to retaliate by imposing stiff new tariffs on American-made products, such as bourbon and Harley-Davidson motorcycles. Harley is now struggling and is the process of closing a plant in Kansas City, Missouri. It could be shutting down more plant capacity in the U.S if sales continue to decline. (more…)

Jaguar Land Rover Profits Cut By Falling Diesel Sales

Overall sales rose 1.7% with China leading the way.

by on May.24, 2018

Ralf Speth, Jaguar president, touted the company's full-year sales set a new record, driven by a 19% increase in China.

Jaguar Land Rover reported its annual pre-tax profits fell to 1.5 billion pounds, or $2 billion, from 1.6 billion pounds the year before, and fourth quarter profits during the January to March period was almost cut in half from 676 million pounds, or $905.3 million, to 364 million pounds.

The drop in profits during January to March period was affected by the higher charges in its vehicle development program and the drop in sales of diesel-powered vehicles. But the company said its annual pre-tax profit was boosted a 437-million-pound, or $585.2 million, credit from its pension scheme in the first quarter of the year.

Global News!

The automaker, which was re-organized 10 years ago after Ford Motor Co. sold it to Tata, the Indian industrial conglomerate, noted that “consumer uncertainty surrounding diesel models, Brexit and vehicle taxation” hurt sales in the United Kingdom.  (more…)

Bosch Exec Predicts 50 Percent Rise in 2018 EV Sales

Annual sales expected to rise from 1% to 1.5% of total sales.

by on May.23, 2018

The Chevy Bolt will be joined by two dozen other GM battery-electric vehicles by 2023.

Sales of battery electric vehicles are growing steadily and impressively, according to a key executive at Robert Bosch Gmbh, one of the world’s top automotive suppliers.

Sujit Jain, Bosch Group regional president, Passenger Cars and Electric Vehicles, Powertrain Solutions Division, noted the market share of battery electric vehicles has steadily grown in the U.S. since 2013, reaching nearly 1%.

EV News!

On the surface, the number appears small, but the rate of growth has been impressive with EV sales possibly reaching 1.5% this year, Jain said after a presentation at the Bosch Mobility Experience at the company’s North American test track in suburban Detroit. (more…)

Volvo Moving to Eliminate Plastic Waste

Automaker following UN guidelines on cutting plastics.

by on May.21, 2018

Stuart Templar, director for Sustainability, is leading Volvo's efforts to eliminate single-use plastics from its facilities and events.

In another step to secure its reputation as a green company, Volvo Cars plans to remove single-use plastics from all its offices, cafeterias and events across the globe by the end of 2019.

The company said decision reflects the company’s active support of the UN Environment Clean Seas campaign and underlines its ambition to minimize its global environmental footprint. Tons of plastic have been found in the world’s oceans and the plastic pollution is considered a significant threat to aquatic creatures.

News You Can Trust!

Volvo plans replace more than 20 million single-use plastic items such as cups, food containers and cutlery with more sustainable alternatives, including biodegradable products made of paper, pulp and wood. This equates to the removal of over 500 plastic items per employee per year. (more…)

In Final Move as FCA CEO, Marchionne Expected to Order Massive Shift in Product, Manufacturing Plans

Small Fiat models likely to be dropped, brand may leave U.S.

by on May.18, 2018

Could FCA pull the Fiat brand out of the U.S.?

As Fiat Chrysler Automobiles prepares for life beyond its founding chief executive, CEO Sergio Marchionne is expected to announce major shifts in the automaker’s product and manufacturing strategy, according to several reports.

During a June 1 meeting meant to reveal FCA’s next five-year plan, the 65-year-old executive reportedly will announce that the Fiat brand will abandon two of its base models, the Punto and Mito, while shifting emphasis to more up-market models. The automaker also will put more emphasis on its Jeep brand which, Marchionne said during the Detroit Auto Show earlier this year, could help Fiat Chrysler double its earnings during the next five years.

The Last Word!

One of the key questions hanging over the Euro-American automaker may not be resolved during a meeting bringing together analysts and journalists from around the world: who will replace Marchionne as CEO? He has dropped hints that his successor will come from FCA’s current top management ranks, which means no women or outsiders are in the running.

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Volvo Cutting Diesel Engines from Portfolio

Company plans to move to just gas and electric only.

by on May.18, 2018

The Volvo S60 will be the first sedan from the automaker that is offered without a diesel powerplant as an option.

Volvo Cars is implementing plans to stop offering diesel engines in its future vehicles.

The company announced this week the new Volvo S60 sedan – to be launched later this spring – will be the first Volvo to be produced without a diesel engine. The decision to eliminate a diesel engine on a model that will be sold worldwide highlights Volvo Cars’ “commitment to a long-term future beyond the traditional combustion engine,” the company said.

Product News!

“Our future is electric and we will no longer develop a new generation of diesel engines,” said Håkan Samuelsson, president and chief executive of Volvo Cars.  (more…)

Nissan’s Operating Profits Down for FY17, Favorable Tax Rates Raise Income

Company predicts vehicle sales will rise in 2018.

by on May.14, 2018

Nissan Chief Hiroto Saikawa reported the automaker's earnings for 2017.

Despite a tough environment for the first nine months of its fiscal year, Nissan Motor Co. Ltd rallied to post increases in revenue and net income for 2017 and sales increases in its top three markets: the U.S., China and Japan.

Nissan’s January-March profit was 168.8 billion yen, or $1.5 billion, down from 249 billion yen last year. Quarterly sales fell 0.9% to 3.4 trillion yen, or $31.3 billion.

Global News!

The automaker reported an operating profit of 574.8 billion yen, or $4.9 billion, on net revenues of 11.95 trillion yen, or $109 billion, equivalent to an operating margin of 4.8%. The operating profit was down from 2016 by 22.6% and margins fell 1.5%. (more…)

BMW Unleashes its Most Powerful M5 Ever

At 617 hp, M5 Competition will hit 60 in 3.1 seconds and 125 in 10.8.

by on May.14, 2018

The BMW M5 Competition is just a bit more powerful than the M5 at 617 hp, 17 more han the M5.

At 600 horsepower, you might think that the 2018 BMW M5 can make good claim to being “the ultimate driving machine.” But the Bavarian automaker apparently had second thoughts and has decided to amp things up a bit.

Come 2019, if you’ve got $110,995 in loose change you’ll be able to head down to your local BMW showroom and order up the 2019 M5 Competition model. At 617 horsepower, this beast has more than enough power to scare most competitors on the track, but it will be completely street legal – well, unless you try to push it anywhere near to the limits.

Product News!

Picking up on the theme we first saw with the M2 Competition, BMW has made some low-key exterior and interior enhancements, focusing most of its efforts on what you’ll find under the hood – and that not only means more ponies but a more distinctive – read: louder – exhaust note. (more…)

Mitsubishi Motors Profits Rebound Big in FY17

Third leg of Alliance enjoys turnaround year.

by on May.11, 2018

The new Mitsubishi Eclipse Cross is helping to draw new buyers to the Japanese brand.

Once considered an also ran, Mitsubishi Motor Co has found new life on the heels of its alliance with Renault and Nissan.

Mitsubishi Motors reported net sales were up 15% year-on-year to 2.19 trillion yen, or $20.1 billion, for Fiscal Year 2017, ending March 31, 2018. Operating profit rose sharply to 98.2 billion yen, or $899.5 million, representing an operating margin of 4.5%, compared with an operating profit of 5.1 billion yen, or $45.8 million, in the same period of Fiscal Year 2016.

Industry News!

The company generated net income of 107.6 billion yen, $988.3 million, for the latest 12-month period, reversing a net loss of 198.5 billion yen, or $1.8 billion, in the prior fiscal year, the company reported. (more…)