FCA announces big growth in income, profits and sales for the last financial year.

Fiat Chrysler Automobiles met its full-year guidance as strong results from North America and improving operations in Europe managed to offset persistent weakness in Latin America, the company said in a press release.

The world's seventh-largest carmaker, which moved its primary listing to New York in October and is due to spin off luxury unit Ferrari later this year, reported operating profit adjusted for unusual items of 3.65 billion euros ($4.1 billion).

This compares with a guidance range of between 3.6 billion-4 billion euros and an analyst forecast of 3.4 billion euros, according to Thomson Reuters SmartEstimate.

Net income was 632 million euros ($617.4 million).

Revenue rose 11 percent to 96.1 billion euros ($109 billion), while net debt at the end of last year rose to 7.7 billion euros, up from 7 billion at end-2013.

For this year, FCA forecast operating profit, excluding unusual items, of between 4.1 billion-4.5 billion euros, while revenues are seen rising to around 108 billion euros. Worldwide shipments are seen rising to around 4.8 million-5 million vehicles, up from 4.6 million last year.

This year, FCA is expected to increase spending as it pushes ahead with a 48 billion euro expansion plan meant to boost the carmaker's global sales by 60 percent to 7 million cars between 2014 and 2018 and increase net profit fivefold.

The carmaker has begun turning the corner in Europe and may even break even in the region at an operating level this year as a focus on premium vehicles for export starts to pay off. In 2014, FCA trimmed its operating losses in Europe to 109 million euros from 506 million the previous year.

Along with other mass market producers, FCA was hit by a six-year slump in European car sales, from which the region is only slowly recovering. It has forced FCA to increasingly rely on its U.S. operations for profit. The North American business contributed just over half of FCA's operating profit and 55 percent of revenues last year.

FCA US sales rose 16 percent to 2,090,639 vehicles last year. The overall U.S. market rose 6 percent during the same period.

FCA shares have risen more than 60 percent last year, lifted by Fiat's buyout of Chrysler, the merged firm's move to Wall Street and its announcement of the Ferrari spin-off. The stock hit a high of over 12 euros this week on expectation that the strong dollar would become a major boost for the company in coming months.

FCA memo to employees

The following is a letter from Fiat Chrysler CEO Sergio Marchionne to employees, obtained by Automotive News:

Dear Colleagues,

Capping off an historic year, during which we made the transition to a single, global organization, FCA today released its preliminary 2014 financial results that report strong performance in line with our expectations. These results are testimony to your continued commitment to our values, the ability to maintain focus on our key objectives and our determination to build a truly special group.

We shipped 4.6 million vehicles in 2014, an increase of 6 percent over the previous year, with NAFTA, APAC and EMEA all contributing to the growth and the Jeep brand setting an all-time annual record with global sales of more than one million units.

The increase in shipments, together with a better product mix, drove revenues 11 percent higher to €96.1 billion, with increases in all regions but LATAM, where weak market conditions continued.

EBIT (Earnings Before Interest and Taxes) increased 7 percent to €3.2 billion. Excluding unusual items, EBIT totaled €3.7 billion, with strong improvements for APAC, Maserati and EMEA, which returned to profitability in the fourth quarter, an indication that we are turning the corner in the region as our focus on producing premium vehicles for export begins to pay off.

FCA posted a net profit of €632 million for the year. Excluding unusual items, net profit was €955 million, which represented a slight improvement over the prior year.

We will remember 2014 as a momentous year that included the formation of FCA (now the world’s seventh-largest automaker), the debut of our shares on the NYSE, our return to the U.S. equity markets, record sales for both Jeep and Maserati and the return of Alfa Romeo to North America after a 20-year absence. We also presented an ambitious five-year plan to grow our business and continue building an extraordinary enterprise that has the potential to enrich us at both the industrial and the human levels.

We have already begun 2015 with the same momentum. Based on positive results for the new Jeep Renegade and Fiat 500X, earlier this month we announced plans to add 1,500 new jobs at the Melfi plant, where we have already invested more than €1 billion in production of the new models. At the North American International Auto Show in Detroit, we unveiled the all-new 2015 Alfa Romeo 4C Spider, another step on our way to reinvigorating Alfa Romeo and making it a true global brand. We also introduced the new 2015 Ram 1500 Rebel and announced the new Ram 1500 EcoDiesel HFE, which remains the most fuel-efficient full-size pickup in North America.

This is just the beginning of a new year filled with opportunities for continued growth together with the challenges of an incredibly competitive landscape.

Let’s continue to dream big and take accountability for achieving our targets so that this time next year we, as a team, can look back with pride at the progress we have made as we continue this remarkable journey.

You'll want this, the new Jeep Grand Cherokee SRT Red Vapor, whats not to like.....

Plans to continue the success of the remarkable Jeep Grand Cherokee range of 4x4 vehicles have been announced, with details of a formidable new SRT version, the Red Vapor Limited Edition.

Designed to sit competitively in the sports performance sub-SUV segment of the hotly contested 4WD market, the new 6.4-litre V8-powered Grand Cherokee SRT Red Vapor will offer all the presence of Jeep SRT’s legendary muscular sports styling with breath-taking performance. Top speed is 160mph while 0-62mph takes just five seconds.

First shown at last October’s Paris Motor Show, the new Jeep Grand Cherokee SRT Red Vapor comes with an assertive and attractive sports appearance, and features a host of desirable equipment befitting of the Jeep Grand Cherokee SRT badge. Unique exterior and interior styling cues enhance the car’s distinct, high-performance image and set it apart from other sporting SUVs.

As well as Quadra-Trac ‘Active on Demand’ four wheel drive, anti-lock SRT performance disc brakes and active damping suspension, the Red Vapor also offers premium sports styling in the form of body coloured door handles, black roof moulding, body coloured sill extensions and wheel flare extensions. 

Five-spoke 20-inch Goliath wheels and a specific Black Vapor black chrome finish enhance the exterior while the lower grille, inserts of the upper grille, SRT tailgate badge, side Grand Cherokee badges and bonnet Jeep badge are all glossy black.

The first limited edition of the current Grand Cherokee SRT, Red Vapor is not only available in Metallic Red (Redline). This exclusive car also comes in Bright White and Brilliant Black.

Inside, a leather-wrapped steering wheel and gear changer complement the exclusive Black Laguna leather and Radar Red suede seats with unique red stitching, luxury front and rear mats and chrome pedals. The SRT badge on Red Vapor’s steering wheel is backlit, and grey chrome replaces the shiny chrome seen on SRT.

The new Red Vapor is also equipped with the 8.4-inch Uconnect™ touchscreen display with integrated 3D navigation, advanced voice recognition, Bluetooth audio streaming and hands-free technology.

Further standard features include cross-path detection, adaptive cruise control, blind spot monitoring, 825-watt Harman-Kardon audio system with 19 speakers and three sub-woofers, power tailgate, and rear light bar.

Powered by Jeep’s proven 461bhp, 6417cc, 16-valve, V8 engine, and connected to an eight-speed automatic gearbox with steering wheel-mounted paddle controls, the car features Fuel Saver technology to cut fuel consumption and emissions. The engine’s sporty note is enhanced by the innovative Active Noise Cancellation (ANC), which uses the audio system to counter any low frequency engine noises.

The new Jeep Grand Cherokee SRT Red Vapor will cost £64,999 (OTR) when it goes on sale later this week. That represents one of the best performance and equipment levels against price, among the sports SUV sub-segment.

“Styled and targeted to the high performance SUV market and with an exceptional level of equipment on offer, the Grand Cherokee SRT Red Vapor is very attractively priced,” says Damien Dally, head of brand, Jeep UK.

“With its sporting look, powerful performance and excellent value for money, this limited edition of SRT will, I am sure, appeal to a whole new group of discerning customers.”

USA recall number tops 60.5 MILLION, yes thats right 60,500,000 and still rising for the year.

U.S. automobile recalls surpassed the 60 million mark for the first time in a single year, largely because of the rush to prevent more deaths from defective General Motors ignition switches and Takata Corp. airbags.

The tally of 60.5 million through today is almost double the previous annual record of 30.8 million recalled vehicles set in 2004, according to an analysis of data on the website of the National Highway Traffic Safety Administration. The number will rise further as recent recalls that have been announced by automakers are recorded in the database.

“I don’t think we’re going to see a year like this for a long time,” said Neil Steinkamp, a managing director at Stout Risius Ross who studies warranty and recall issues.

Recalls may remain above historical levels for a while, he said. The Takata airbag crisis continues to grow, and following its slow response to GM’s ignition-switch defect, NHTSA has been pressuring automakers to recall cars more quickly when evidence of a flaw is discovered, using subpoena power and the threat of $35 million fines as motivation.

“Automakers do not want to be accused of dragging their feet, so they’re very quick to issue a recall” now, said Michelle Krebs, a senior analyst at Autotrader.com. “We’re going to see lots of recalls because cars have gotten so complex and there’s so much sharing of parts by all automakers.”

The flood of recalls hasn’t deterred buyers this year. Light-vehicle sales in the U.S. rose 5.5 percent to 15 million vehicles through November, according to the Automotive News Data Center, and are heading for their biggest total since 2006.

GM, Honda 

GM alone has recalled almost 27 million cars and trucks in the U.S. this year, a record for any single automaker. The company has issued 10 safety actions of more than 1 million vehicles each, according to the NHTSA database. Defective GM ignition switches in small cars have been linked to at least 42 deaths and 58 injuries.

Honda Motor Co., the third-largest Japanese automaker, has recalled 5.4 million vehicles to replace Takata airbags. Exploding Takata airbags have been tied to at least four fatalities in the U.S. and more than 100 injuries caused by shrapnel.

Other recalls of more than 1 million vehicles this year included those related to steering, cruise control, engines and seat belts, according to the NHTSA data, which is compiled from automaker filings to the agency. NHTSA plans to release its official recall numbers for 2014 next year.

The Takata airbag flaw investigation led to the recall of more than 8 million vehicles. Unstable propellant in airbag inflators can cause the devices to explode with too much force and spread shrapnel through the car in a crash. Takata on Nov. 6 widened an annual loss forecast and said it can’t estimate the full financial liability of the defect.

Fiat Chrysler 

Fiat Chrysler Automobiles NV said Dec. 19 that it would accede to a NHTSA request and expand an existing airbag recall from hot, humid areas of the U.S., where most failures have occurred, to the entire nation. That will add 2.89 million vehicles to the recall total for the U.S. when reflected in the government database.

GM has said its ignition-switch recalls have cost about $2.7 billion through the first three quarters of this year. GM has said the switches, which it knew were defective for more than a decade, can shut off when bumped, disabling the vehicle air bag and increasing the risk of death or injury in a crash.

With the focus on more and quicker recalls, 2014 will probably signify a period of elevated safety fixes, Steinkamp said. The average number of recalled vehicles per year from the 2004 through last year was 16.1 million, according to NHTSA data.

“It’s a landmark year; it’s the start of a new era,” he said.

REPORT HERE

USA - Chrysler Group LLC Announces New Company Name: FCA US LLC

U.S.-based Automaker’s New Name Aligns With Global Parent 

December 16, 2014 , Auburn Hills, Mich. - Chrysler Group LLC, the Auburn Hills, Michigan-based automaker, today announced that it has changed its company name to FCA US LLC.

The name change is effective immediately and follows the naming convention of its global parent company, Fiat Chrysler Automobiles N.V. (FCA), which officially adopted its new name in October when it listed on the New York Stock Exchange.

The name change to FCA US LLC does not affect the company’s headquarters location in Auburn Hills, Michigan, its holdings, management team, board or brands.

FCA US, together with parent FCA, continues to work toward the business plan presented on Investor Day in May 2014. Additionally, the Company remains proud of its joint heritage. FCA US continues to build upon the solid foundations first established by Walter P. Chrysler in 1925 as well as a rich Fiat heritage that dates from 1899.

FCA US employs more than 77,000 employees worldwide, with 96 percent of its workforce based in North America. FCA US operates 36 manufacturing facilities, including 23 in the United States, six in Canada and seven in Mexico.

REPORT HERE