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Posts Tagged ‘Sergio Marchionne’

Automakers Look for Options, Weigh Costs Under Trump

Carmakers, car buyers, car workers might all feel the impact.

by on Jan.27, 2017

Pres. Donald Trump signing an Executive Order. He plans to enact a 20% Mexican tariff.

The increasingly contentious battle between the Trump Administration and Mexico could lead to some significant collateral damage, notably including both carmakers and car buyers.

With the Mexican government rejecting a White House demand to pay for a border wall, President Donald Trump now wants to not only negotiate the North American Free Trade Agreement but impose a 20% tariff on good imported from south of the border. After making extensive use of NAFTA to set up a network of manufacturing operations in Mexico, automakers could be among the hardest hit.

Beyond the Headlines!

But there is, for now, widespread disagreement about how to respond to the Trump plan. Japanese automakers Nissan and Toyota say they are looking for ways to increase U.S. production. Ford’s CEO, after meeting with the new president this week, is rejecting the idea of building any new U.S. factories. Meanwhile, Fiat Chrysler’s chief executive says it may be time to rethink the possibility of a merger with domestic giant General Motors.

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Fiat Chrysler Earnings Near $2b for 2016

Company says it will boost profit-sharing for hourly workers by 25%.

by on Jan.26, 2017

Despite weak sales of the now-cancelled Chrysler 200, FCA earnings surged for 2016.

Detroit’s smallest automaker closed the books on 2016 on a high note, delivering full-year earnings of $1.92 billion, after only marginally squeezing into the black the year before.

The turnaround should be good news to both Fiat Chrysler Automobiles investors and workers. The Euro-American automaker said it will nearly halve its net debt in the coming year. It also announced it would boost profit-sharing for U.S. hourly workers by 25%.

By the Numbers!

Net profits for all of 2016 jumped to 1.81 billion euros, or $1.92 billion, for FCA, which is officially registered in Amsterdam but operates one of its primary headquarters in the Detroit suburb of Auburn Hills. That compares with a meager 93 million Euro profit for all of 2015.

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Trump to Meet with Detroit CEOs on Tuesday

Plenty of room for deal-making.

by on Jan.24, 2017

Will Trump use the carrot, the stick, or both, during his meeting with Detroit's Big 3 CEOs.

With an assortment of global leaders set to visit the White House in the coming weeks, President Donald Trump will first take time to meet with the CEOs of the Detroit Three automakers in the Oval Office this morning, and it’s expected there will be plenty on the agenda.

Trump has put a lot of emphasis on the auto industry since launching his campaign in 2015, notably taking shots at the largest of the two domestic makers for importing cars from Mexico. He has threatened to enact a “big border tax,” according to a tweet fired at General Motors earlier this month, scuttled the Trans-Pacific trade pact and advised both Mexico and Canada of his plan to renegotiate the NAFTA deal.

Breaking News!

While industry officials worry about the impact of new trade barriers, they’re also hoping to get a sympathetic ear from the new president on a variety of their own concerns, including corporate taxes and government regulations like the tough Corporate Average Fuel Economy, or CAFE, mandate the EPA reaffirmed in the final hours of the Obama Administration.

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Fiat Chrysler Loses Fuel Tank Fire Appeal

Automaker contends fuel tanks are not defective.

by on Nov.23, 2016

FCA CEO Sergio Marchionne testified that he believes the rear-mounted fuel tanks on Jeeps are safe.

Fiat Chrysler lost its bid to overturn a $40 million verdict granted to the parents of a 4-year-old boy killed in the fiery crash of a 1999 Jeep Grand Cherokee.

A Georgia appellate court found in favor of the plaintiffs, rejecting FCA’s argument that certain evidence was wrongly allowed and the award resulted from prejudice based on that evidence.

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The Court of Appeals of Georgia concluded that a lower court judge did not err by allowing the parents of Remington Walden to present evidence of instances of other fires to support their claims. (more…)

Ferrari Looking to Hybrids to Help Boost Demand

And it isn’t alone: many performance brands studying electrification options.

by on Nov.11, 2016

The LaFerrari showed that hybrid power can meet highest levels of performance Ferraristas expect.

While many folks still think of battery power as a way to create fuel-efficient, albeit boring, automobiles, Ferrari is looking at electrification as a way to boost both performance and sales.

Speaking to industry analysts following release of the company’s earnings this week, CEO Sergio Marchionne said Ferrari would like to be selling as many as 10,000 vehicles annually in the near-future. But to do that, it would probably add some sort of hybrid technology to every vehicle in the brand’s line-up by 2019.

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Ferrari has already used a Formula One-derived hybrid system for the flagship LaFerrari. And it’s not alone in looking at its battery options. Porsche has the high-performance Mission E under development, Aston Martin developing a battery-electric version of its Rapide. And there’s also the Tesla Model S with its Ludicrous mode. Even Mercedes-Benz is looking at a variety of battery-based options for its AMG line.

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FCA Earnings Increase Overwhelmed by Sales Reporting Scandal

Maker says profit rose 25% for second quarter.

by on Jul.27, 2016

FCA CEO Sergio Marchionne has reason to celebrate Q2 - albeit cautiously.

Fiat Chrysler Automobiles reported a 25% year-over-year increase in profits for the second quarter, despite hefty recall costs, thanks to strong demand in North America and Europe. That has led the maker to up its guidance for all of 2016.

But recalls aren’t the only problems the maker is dealing with. The trans-Atlantic automaker yesterday acknowledged misreporting its sales numbers in recent years, a problem that has reportedly led to a grand jury investigation. The problem could lead to closer scrutiny by industry analysts and investors.

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“Overall we had a good quarter,” Fiat Chrysler Chief Financial Officer Richard Palmer said during a conference call with analysts and reporters.

FCA earned 321 million euros, or $352 million, for the second quarter, a 25% jump from last year’s 257 million euros, or $282 million.

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Grand Jury Looking into FCA Sales Reporting Scandal

Maker acknowledges fudging numbers.

by on Jul.27, 2016

The FCA scandal could prove a new headache for CEO Marchionne' search for a merger partner.

A federal grand jury is issuing subpoenas as government investigators expand their investigation into potentially illegal Fiat Chrysler Automobiles sales reporting practices, according to published reports.

The news comes a day after the automaker acknowledged that it has misstated its sales figures for a number of years and that rather than having six straight years of sales records, its upward climb actually came to an end in September 2013.

Auto Insider!

But several sources who have spoken to TheDetroitBureau.com caution that any probe of sales policies could eventually spread beyond Fiat Chrysler and look at broader industry practices that can misrepresent the numbers. Such practices, said a senior executive at one of the nation’s largest automotive retailers, can negatively impact investors, dealers and consumers alike.

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Dodge Killing Off Viper Again

Slow sales led to repeated production cuts.

by on Jun.22, 2016

The Dodge Viper will end its run this year.

For the second time since 2010, Fiat Chrysler is killing off the Dodge Viper sports car.

Reintroduced in 2012 to much fanfare, the Viper received strong reviews, but relatively few buyers ponied up the initial MSRP of $97,395. Dodge later cut the price but sluggish sales forced it to repeatedly put production on hold.

In the Know!

“The Dodge Viper has had a great run and, 25 years after it was first introduced, it leaves the super car world reaching for the records it continues to set,” Tim Kuniskis, the head of the Dodge brand, said in a statement.

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FCA Set to Wind Down Passenger Car Production

Trucks Moving in at two current sedan plants.

by on May.09, 2016

The Jeep Crew Chief concept reveals some "hints" of a production Jeep pickup to come.

With pickups, utility vehicles and vans now capturing about 60% of the U.S. market, automakers are struggling to shift production to match consumer demand, in some cases dropping once-popular passenger car models and refitting plants to produce light truck lines.

Nowhere is that shift becoming more apparent than at Fiat Chrysler Automobiles. At least two of the maker’s sedans will soon head off to the junkyard, making room for expanded production of updated and possibly all-new pickups and SUVs.

Stay on Top!

At least two plants will be impacted by the shift at the trans-Atlantic automaker, including one in Belvidere, Illinois and another in the Detroit suburb of Sterling Heights where 3,000 workers have been on temporary layoff due to slow sales of the Chrysler 200 since early this year. Nearly half will be put on indefinite layoff in July, likely for as much as two years.

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Marchionne Adds Ferrari CEO to His Resume

26-year veteran Amedeo Felisa retires.

by on May.02, 2016

Sergio Marchionne (l); Amedeo Felisa (cl), and FCA Chairman John Elkann (r) mark Ferrari's IPO.

As if he doesn’t have enough to keep himself busy, Sergio Marchionne is adding another title to his CV. With the unexpected retirement of Amedeo Felisa, Marchionne will now become chief executive officer at Ferrari.

The Canadian-raised executive also serves as chairman of the sports car company – as well as CEP of Fiat Chrysler Automobiles NV, which spun Ferrari off this past year. Marchionne also runs the North American region for FCA and serves as chairman of CNH Industrial, the heavy duty unit that was created by the merger of Fiat Industry and Case New Holland.

Step on the Gas!

The latest role comes just after Ferrari posted its best earnings ever. But the supercar maker is also has to deal with a variety of challenges, from its aggressive growth target to its ongoing struggles on the Formula One circuit it long dominated.

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