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Auto Earnings Week: FCA(27th),GM(25th),and Ford(26th)

Discussion in 'Mopar News' started by Alexbucks, Jul 23, 2017.

  1. Alexbucks

    Alexbucks Guest

    $205 million "euro" improvement at NAFTA ("Chrysler") by lower warranty cost, "purchasing savings" Supplier recoveries".
     
  2. Mike V.

    Mike V. Mopar-nac The Moderator
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    Can you provide additional information? I’m not trying to harp on you but you are making claims about a cost reduction that includes other items as if was only one item.

    It’s a big accusation.

    Mike
     
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  3. Mike V.

    Mike V. Mopar-nac The Moderator
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    I’m well aware. Thanks.

    Mike
     
  4. BobbiBigWheels

    BobbiBigWheels The "Front-Line" Perspective
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    I am by no means an expert in this side of things - however - that would dove-tail nicely into our quality conversations...
     
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  5. Alexbucks

    Alexbucks Guest

    Maserati had great results. So it more than "cutting".
     
  6. Mike V.

    Mike V. Mopar-nac The Moderator
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    That’s kind of my point, and it it may be part of the reason why the adjusted EBIT is what it is.

    Mike
     
  7. Alexbucks

    Alexbucks Guest

    But Mike, but low warranty cost is also a sign of improved quality (all around experience, too)?
    ;)
     
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  8. Mike V.

    Mike V. Mopar-nac The Moderator
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    I get you, but probably best to be less antagonistic in your posts ;)

    Mike
     
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  9. Alexbucks

    Alexbucks Guest

    Will play the Conference Call (I'm about to have the ability to)...to hear Sergio & Palmer as well the Q&A. Will post about it.
     
  10. Deckard_Cain

    Deckard_Cain Active Member

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    There's increases in margins and profits in all geographic regions. Maserati nearly doubled their sales and more than doubled their profit margins.
    Jeep in China is selling like hotcakes, meaning they doubled their sales in China while slightly increasing margins. Latin America is back to profitability (and the Argo wasn't for sale yet).

    And apparently they're "squeezing the suppliers". When there's recalls, it's terrible because there's recalls.
    So yeah, if they have a trimester with no recalls you should be happy. There's plenty to like over here. Here's the PDF with the second quarter results. It provides a better picture.

    | Net industrial debt (billions of euros) | Debt | Available liquidity
    At June 30, 2017 | (4,226) | (19,140) | 19,953
    At December 31, 2016 | (4,585) | (24,048) | 23,801
    Change | 359 | 4,908 | (3,848)
    _______________________________________________________________________________________________________________________
    At June 30, 2017: | (4,226) | (19,140) | 19,953
    At March 31, 2017: | (5,112) | (21,156) | 21,576
    Change | 886 | 2,016 | (1,623)

    The total debt compared to Dec 16 improved 4.9 billion euros. Available liquidity decreased 3.848 billion euros. You have there a 1.1 billion euros improvement in total debt not attributed to lower available liquidity.
    Or compare wit Mar 16. Debt decrease 2 billion euros. Available liquidity? Lower 1.6 billion. So 500 improvement not due to decrease in available liquidity
    You want to know why you have lower available liquidity?? Investments in the factory reshuffles in the US.
     
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  11. Prabhjot

    Prabhjot Active Member

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    Marchionne said:

    (a) his successor will be from within (b) he will have zero to do with fca once he retires (c) fca's management structure will have to change since given that his way of managing is not for everyone nor best for the new contexts of fca

    (d) they expect huge quarters in the rest of 2017, as Cherokee production returns, as ALfa-s and the Jeep Compass rollout fully globally and in the usa and due to seasonality

    (e) that MM +- COMAU +- Teksid are likely to be spunoff/sold since they are best off in terms of valuations if they not part of an automotive oem that needs to be 'purified'

    (f) his successor has been a part of the 2018-2022 investor day (early 2018) announcement/discussions plan, and so it is fine for him to retire while stil somehow having made the next plan which covers the period right after his departure, though he will llikely remain a part of EXOR (g) that brands like Jeep, Ram, Alfa and Maserati can indeed likely survive 'on their own' (somehow?) except for the fact that what's left behind ('the stump') may not be financially strong enough to survive in the longterm, also because while strong (already like Jeep and Ram, and very likely soon like Maserati+Alfa) they are NOT ferrari and the sheer costs of powetrain etc regulatory and compliance often means that remaining part of larger OEM may still make sense.

    (g) that these were theoretical statements, analytic ones, and that said nothing whatsoever about what they might or might not do (spinoffs of brands etc, as he has done with first cnh industrial, then ferrari)

    (h) such plans will be discussed (revelaed?) only in early 2018, when they have their next investor day for the 2018-2022 timeframe

    (i) boasted that FCA, finally and for once, is in the BEST place as far as a slowing and margin-crunching usa marketplace is concerned relative to everyone else

    (j) sounded certain that they'd easily reach the Jeep global sales target of 2million by 2018, and that the longterm target for Jeep, based on the all-new models made in many parts of the world, is for Jeep to have something like 20% marketshare of the entire crossover+suv space globally, i.e., 7 million vehicles. He mentioned the ongoing work on the new Cherokee, Grand Cherokee, (G) Wagoneer, etc leading to a clear highway to that goal of 20% marketshare globally for cuv and suv-s.

    (k) In excoriating, scathing-about the German autofirms' collusion/cartel behaviour he seemed to, i could be wrong, acknowledge that the authorities may frown upon even merger-type consolidation (anti-trust, etc), given the 'public mood' (esp in europe), and that therefore cost savings are likeliest NOT through collusion or cartelisation or mergers/joint-projects BUT through suppliers and by spinning-off especially powertrains and especially future ev/h/phev type powertrains and the likes of Magneti Marelli into seperate entities that then enable sharing with other oem-s, thereby enabling scale based cost-saving WITHOUT any collusion.

    (l) said that the automotive industry as a whole was undoubtedly the industry at the bottom of the barrel when it came to investor interest or confidence. And that therefore all and other means than the standard fare have to be found to achieve good 'valuations' in order to 'return' goodies to the few investors who did in fact care for auto companies. (What he did not explicitly say but that was implicit was the disproportionate influence his Confessions of a capital junkie, despite being only a frank confession rather than an original piece of analysis, has had on turning-off knowledgeable and yield-seeking investors and analysts away from the auto sector: globally!)

    More details and discussions in early 2018: when they do the next Investor Day (plans for 2018-2022.)
     
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  12. Alexbucks

    Alexbucks Guest

    Sergio stated the New RAM to be shown at the Detroit Autoshow.
     
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  13. Alexbucks

    Alexbucks Guest

    Sergio also stated during the (Analyst Q&A ) Call that at the next years "Investor"/Analyst Day event a "much clearer" picture "of the activities of FCA".....pretty much hinting that Magneti Marelli & others will be spun off.
     
  14. Alexbucks

    Alexbucks Guest

    During the Analyst Q&A, Sergio slammed GM's inventory levels just like last quarter call......stated "FCA has and will remain disciplined" with inventory.
     
  15. MJAB

    MJAB Well-Known Member

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    Dodge Dart and Chrysler 200 were still in production in 2016, but not in 2017, as well a Jeep Patriot and Jeep old Compass.
    No production of that models = no parts from suppliers for that four vehicles.
    Vehicles of Small family of architectures cost less to manufacture than the vehicles of Compact family of architectures.
     
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  16. GasAxe

    GasAxe Well-Known Member

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    This is what I was thinking on how supplier costs could be reduced without actual price cuts. Improved sourcing can lead to a much healthier cost structure in my experience. That doesn't mean the screws aren't being tightened, but we also usually hear some public squawking from suppliers when it's happening. I had hoped that by dropping more low end product, the margins would have risen more dramatically, but I have not even scratched the surface of the reports details.
     
  17. MJAB

    MJAB Well-Known Member

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    Some, maybe few, more data will appear in the "interim report Q2" when it will published, for now there are only the presentation slides.
     
  18. Erik Latranyi

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    You all know that FCA has been having monthly meetings with NHTSA since last year due to the large volume of recall work?

    Q2-16 recall costs may also be lower since they had to pay a $105 million fine last year in Q2 for dragging their feet on recall work.
     
  19. Prabhjot

    Prabhjot Active Member

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    They already took a 900million odd$ charge for the LARGE, imo gratuitous, number of nhtsa-punishment-associated recall campaigns: in q4 2015 if am not wrong? That charge had nearly wiped out ALL of fca's net profitability for that financial year!

    @Erik Latranyi
     
  20. Erik Latranyi

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    Yes, and in Q2-16, they had to pay a $105 million fine for being slow with recall work. Part of that agreement was monthly meetings with the NHTSA to ensure FCA was continuing to do the recall work on a timely basis.......those monthly meetings keep getting extended because of the large volume of recall work required.
     
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