Fiat/Chrysler finalise merger with merged conference call on sales and ernings

Fiat and Chrysler will for the first time hold a single conference call on their annual results on Wednesday as the two companies finalize a merger that will create the world's seventh-largest auto group.

Fiat said on Jan. 1 that it had struck a $4.35 billion deal to gain full control of Chrysler by buying the remaining 41.46 percent stake that it did not own in the U.S. carmaker from the United Auto Workers VEBA Trust.

The move was the last step needed before the Italian and U.S. carmakers can merge allowing Sergio Marchionne, who heads both companies, to combine their resources as he seeks to cut losses in Europe.

Full ownership of Chrysler enables Marchionne to create a global industry player with better scale to challenge General Motors Co. and Volkswagen Group. He has tried since taking the helm at Fiat in 2004 to buy a competitor to give the struggling Italian manufacturer a worldwide market strategy for growth.

Merging the two companies will allow Fiat to pool cash with Chrysler and tighten cooperation between its Alfa Romeo, Lancia and Maserati brands with Chrysler, Dodge and Jeep.

The 2013 results' conference call will be held at 15:00 CET, Fiat said in a statement on Monday.

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FIAT completes takeover of Chrysler Group.

Fiat S.p.A. (“Fiat”) through its wholly owned subsidiary, Fiat North America LLC (“FNA”), today completed its previously announced acquisition of all of the VEBA Trust’s[1] membership interests in Chrysler Group LLC (“Chrysler Group”). Chrysler Group is now a wholly-owned subsidiary of Fiat. The consideration for the acquisition consisted of:

• a special distribution paid by Chrysler Group to its members on January 21, 2014 of U.S.$1,900 million (FNA directed its portion of the special distribution to the VEBA Trust as part of the purchase consideration); and
• a cash payment by FNA to the VEBA Trust of U.S.$1,750 million.

Fiat funded the U.S.$1,750 million payment from available cash on hand. Chrysler Group funded the special distribution from available cash on hand.

As previously announced, contemporaneously with the transactions described above, Chrysler Group and the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (the “UAW”) entered into a Memorandum of Understanding under Chrysler Group’s existing collective bargaining agreements to provide for additional contributions by Chrysler Group to the VEBA Trust of an aggregate of U.S.$700 million in four equal annual instalments, the first of which was paid in connection with closing of the transaction with Fiat.

As part of the transactions and as promptly as practicable, FNA and the VEBA Trust will dismiss with prejudice the proceedings before the Delaware Court of Chancery with respect to the interpretation of the call option agreement.

USA - December 2013 Sales: Automakers Shatter Records

The end of the year usually brings strong sales figures, and while a good number of automakers saw negative sales numbers for the month, they still managed to break yearly sales records. Some automakers even managed to set new sales records, like Audi who had its best U.S. sales year to date.Looking at the month of December, Honda had its best December sales, while Volkswagen managed to have its second best December since 1972. Other automakers boasted strong months, including Mitsubishi that had its best December in seven years.

We can't look at the month of December and not take a peek at overall sales records. Ford claimed its best year of sales since 2006, Kia had its second best full year of sales in the U.S., and Mazda managed to have its best year of retail-only sales since 1994.Even the luxury automakers outdid themselves. Mercedes-Benz achieved its highest year of sales in the U.S. with 312,534 units sold in 2013. BMW managed to break its U.S. all-time sales record, while both the BMW and Mini brands set new sales records.Take a look at the chart below to see how each automaker finished out 2013.

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MEXICO - Chrysler Group announces December sales across all brands.

• FIAT brand sales, driven by Fiat 500, up 111 percent during December 2013, marking this its best sales year since its launch
• Ram Crew Cab increased its sales volume 29 percent during December 2013
• Jeep® brand sales grew 5 percent, led by Jeep Patriot and Jeep Grand Cherokee; Jeep Cherokee has arrived in dealerships, well accepted
• Dodge brand sales propelled by Dodge Journey, which registered sales of 1,579 units — its best sales month in the last two years; Dodge Challenger registered sales of 96 units, best sales month ever and Dodge Durango sold 196 units, marking this its best sales month in five years

Chrysler de Mexico announced sales of 10,473 units for the month of December 2013, setting a sales record for the year.

“As the year ends, we feel very proud of what we accomplished. We closed 2013 with our best month of sales for the year. This month our sales were driven by Dodge Journey, Jeep Patriot, Ram Crew Cab and Fiat 500," said Bruno Cattori, President & CEO of Chrysler de Mexico. "Our new product launches, such as Dodge Durango, Jeep Grand Cherokee, Jeep Cherokee and Ram ProMaster, pushed our growth sales for the year. During 2013, we opened the Saltillo Van Assembly Plant and added a production line in the Saltillo North Engine Plant, creating new jobs and demonstrating the confidence the Company has in the products assembled in Mexico. We will continue providing new and revamped products in order to satisfy our customers’ needs.”

Chrysler Brand
Chrysler brand continues to perform well with 520 units sold during December 2013. Chrysler Town & Country sales rose 2 percent. Chrysler 200 sold 112 units during December 2013.

Jeep® Brand
Jeep brand sales grew 5 percent. Jeep Patriot led brand sales with 984 units sold, best sales month of the year. Jeep Grand Cherokee posted sales of 632 units, representing an increase of 15 percent. Jeep Wrangler sales improved 27 percent, all versus December 2012. Jeep Cherokee has had very good acceptance among Mexican customers in its second sales month.

Dodge Brand
Dodge brand continues its streak of successful numbers, posting sales this month of 3,894 units. The Dodge Challenger sold 96 units, best sales month ever, while the Dodge Durango registered a sales increase of 32 percent — its best sales month in 5 years. Dodge Journey sales surged 7 percent versus December 2012, with 1,579 units, marking this its best sales month in two years. Dodge Avenger sales grew 16 percent.

Ram Truck Brand
Ram brand showed sales of 1,371. Ram Crew Cab reported a sales increase of 29 percent, with 503 units sold during December 2013. Ram ProMaster, proudly assembled in Mexico, registered sales of 151 units.

FIAT and Alfa Romeo Brand
FIAT and Alfa Romeo achieved sales of 108 percent, with 1,013 units sold. Fiat 500 reached excellent results with 432 units sold during December 2013. Fiat Ducato sales surged 45 percent. This month, Alfa Romeo Giulietta sales improved 60 percent, marking this its best sales month since its launch.

USA - Chrysler announces December and full year corporate figures.

Chrysler Group LLC Reports December 2013 U.S. Sales Increased 6 Percent – Best December Sales in Six Years; Full-Year Sales Up 9 Percent – Strongest Annual Sales Since 2007

• 45th-consecutive month of year-over-year sales gains
• Chrysler Group full-year U.S. sales increase 9 percent in 2013; fourth-consecutive year of annual sales growth
• Jeep® and Ram Truck brands each post double-digit sales increases in December compared with same month a year ago
• Jeep brand posts best December sales ever with 34 percent sales gain; brand sets global sales record in 2013
• All-new 2014 Jeep Cherokee sales top 15,000 units in its second full month of sales; sales up 48 percent compared with previous month of November
• Motor Trend selects Ram 1500 as its 2014 Truck of the Year; Ram pickup sales up 11 percent in December
• 2014 Dodge Dart, Dodge Avenger and Chrysler 200 sedans earn Top Safety Pick ratings from Insurance Institute for Highway Safety

Chrysler Group LLC today reported U.S. sales of 161,007 units, a 6 percent increase compared with sales in December 2012 (152,367 units), and the group’s best December sales since 2007.

The Jeep® and Ram Truck brands each posted double-digit percentage sales gains in December compared with the same month a year ago. The Jeep brand’s 34 percent increase was the largest sales gain of any Chrysler Group brand during the month. FIAT brand sales were up 1 percent. Chrysler Group extended its streak of year-over-year sales gains to 45-consecutive months in December.

“Chrysler Group ended the year with a 6 percent sales gain in December and our 45th-consecutive month of year-over-year sales gains,” said Reid Bigland, Head of U.S. Sales. “Our Jeep and Ram Truck brands had a strong finish led by the all-new 2014 Jeep Cherokee and the Ram pickup truck, Motor Trend’s 2014 Truck of the Year. Sales of the new Cherokee topped 15,000 units in December as our newest SUV continues its solid sales performance out of the gate.”

In its second full month of sales, the new Cherokee mid-size SUV recorded sales of 15,038 units, surpassing sales of the Jeep Wrangler. The Jeep brand recorded its best December sales ever. In addition, the Wrangler and Jeep Patriot each recorded their best December sales ever.

Full-year Chrysler Group sales were up 9 percent in 2013, compared with sales during 2012. It was the fourth-consecutive year of Chrysler Group sales growth. The Ram Truck brand, with its 22 percent increase in 2013, had the largest full-year sales gain of any Chrysler Group brand. Chrysler Group realized sales growth in both its car and truck segments during the year. Chrysler Group car sales in the U.S. were up 11 percent in 2013, while truck sales were up 8 percent. The Jeep brand set a global sales record in 2013.

Chrysler Group finished the month of December with a 79 days supply of inventory (508,615 units). U.S. industry sales figures for December are internally projected at an estimated 15.8 million units Seasonally Adjusted Annual Rate (SAAR).

December 2013 U.S. Sales Highlights by Brand

Jeep® Brand

Jeep brand sales were up 34 percent in December, its best December sales ever and the largest percentage sales gain of any Chrysler Group brand for the month. The Jeep brand’s December sales were second only to record sales in July 2005.

Sales of the all-new 2014 Jeep Cherokee were up 48 percent compared with the previous month of November. Jeep brand dealers sold 15,038 units of the new Cherokee during December, its second full month of sales. The Cherokee topped Jeep Wrangler sales in December as it continued its strong sales launch. The Cherokee was crowned the “Best New SUV/CUV Under $35,000” in December by the Automobile Journalist Association of Canada. The new Cherokee bested a quartet of rivals from one of the country’s most popular and hard-fought vehicle segments.

The Wrangler, Jeep Patriot and Jeep Compass each posted year-over-year sales gains in December. The Patriot compact SUV, with its 35 percent increase, logged the largest percentage sales gain of any Jeep brand model in December. Wrangler sales were up 4 percent in December, compared with the same month a year ago. Both the Wrangler and Patriot each posted their best December sales ever.

Ram Truck Brand

Sales of the Ram pickup truck were up 11 percent in December, its 44th-consecutive month of year-over-year sales gains and its best December sales since 2004. Sales of the Ram Heavy Duty pickups were up 16 percent, while Ram Light Duty sales increased 7 percent. Motor Trend selected the Ram 1500 in December as its 2014 Truck of the Year, its first ever back-to-back winner. Nine Truck of the Year contenders were put through an extensive battery of testing designed to evaluate virtually every aspect of each vehicle. The judges were particularly impressed with the performance of the Ram 1500’s all-new EcoDiesel V-6 engine as well as its eight-speed TorqueFlite transmission, a combination that boasts a towing capacity of up to 9,200 pounds. The 3.0-liter EcoDiesel V-6 is among Ward’s 10 Best Engines for 2014.

Ram Truck brand sales were up 17 percent in December compared with the same month a year ago. Sales of the all-new 2014 Ram ProMaster van were up 126 percent, compared with the previous month of November. The ProMaster van went on sale in the U.S. in October. The Ram Commercial Truck division in December announced that it will offer an all-new small van for the North American market. Joining the larger ProMaster as an additional van offering, the 2015 Ram ProMaster City will compete with small commercial and passenger vans.

Full-year Ram Truck brand sales were up 22 percent in 2013, the largest percentage sales increase of any Chrysler Group brand for the year.

FIAT Brand

FIAT brand sales were up 1 percent in December compared with the same month a year ago. The FIAT brand recorded nine months of year-over-year sales gains during 2013. Sales of the new Fiat 500L, which debuted in June, were up 52 percent in December compared with the previous month of November.

The all-electric Fiat 500e Battery-Electric Drive System was among Ward’s 10 Best Engines for 2014 and the lone representative of electric-vehicle technology. The battery-electric drive system in the 500e hatchback delivers the best-in-class range of 87 miles.

Dodge Brand

Dodge brand sales were down 9 percent in December, but full-year sales in 2013 were up 14 percent on strong Dodge Dart, Dodge Durango, and Dodge Challenger sales. Sales of the Durango full-size SUV were up 3 percent in December compared with the same month a year ago, extending its run of year-over-year sales gains to 14-consecutive months. It was the Durango’s best December sales in eight years. Sales of the Dodge Charger were up 29 percent in December.

The 2014 Dart and Dodge Avenger sedans earned Top Safety Pick ratings from the Insurance Institute for Highway Safety (IIHS) in December. The announcement marks the fifth-consecutive year that the IIHS has commended the Avenger mid-size sedan. Meanwhile, the insurance industry organization has hailed the Dart compact sedan each year since it arrived on the market in 2012. The Dodge sedans feature significant advanced-technology steel content, which enhances structural integrity. The Dart’s 68 percent content ratio of high-strength steel is among the highest in the industry. The Dart also boasts a 5-star safety rating based on crash tests performed by the U.S. National Highway Traffic Safety Administration.

Chrysler Brand

Chrysler brand sales were down 21 percent in December, but sales of the award-winning Chrysler Town & Country minivan were up 5 percent compared with the same month a year ago. It was the Town & Country’s best December sales in three years. For the full year, Town & Country sales were up 9 percent in 2013.

Chrysler 200 sedan sales were up 3 percent for the full year, compared with sales in 2012. The 2014 Chrysler 200 mid-size sedan earned a Top Safety Pick from the Insurance Institute for Highway Safety in December, the model’s fourth-consecutive Top Safety Pick from the insurance industry organization.

USA - Chrysler issues recall notice on a number of its products.

Chrysler Group LLC will recall an estimated 5,663 cars and trucks to inspect their automatic transmissions.

Output shafts installed in some model-year 2013 vehicles were shaped using a two-stage forging method employed during early production. The resulting components may be subject to fracture in rare circumstances.

The process has been replaced by a single-stage forging method.

Chrysler Group is unaware of any associated injuries or accidents.

The recall is limited to certain Chrysler 300, Dodge Charger and Ram 1500 models equipped with a specific set of features and equipment: 4x4 or all-wheel drive, an 8-speed transmission and a V-6 engine. Chrysler Group will inspect and test their transmission output shafts and, if necessary, replace their transmission assemblies at no cost to customers.

Affected customers number approximately 4,194 in the U.S., 1,424 in Canada and 45 outside the NAFTA region. They will be notified when to schedule service appointments with their dealers.

Customers who have concerns may call 1-800-853-1403.

USA - Sales by brand and best seller for October

October sales numbers are out, and the vast majority of automakers have shown positive numbers, with only six falling behind. This month brought a twist with it as Maserati posted sales, something the luxury automaker hasn’t done for quite some time. And for good reason. Sales for the company are up 186 percent, and sales have nearly tripled since the same month last year.

Jaguar Land Rover continues to break records and report extremely high sales numbers, and this month is no different. Separately, Jaguar and Land Rover managed sales increases of 117 percent and 37 percent, respectively, mainly due to strong XF and Range Rover sales.

Lincoln has seemingly turned around its poor sales numbers this month and boasts an almost 40 percent increase over the same month last year. But looking back at September, nearly every automaker was down for the count. We hope to see the automaker continue to climb its way back up.

We don’t want to give everything away, so take a look at the chart below to see which automakers came out on top.

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Chrysler Group LLC has reported U.S. sales of 140,083 units, an 11 percent increase compared with sales in October 2012

• 43rd-consecutive month of year-over-year sales gains
• Chrysler, Jeep®, Dodge and Ram Truck brands each post sales increases in October compared with same month a year ago
• Six Chrysler Group vehicles each set sales record for month of October
• Jeep Grand Cherokee, Wrangler, Compass and Patriot each post year-over-year sales gains led by the 68 percent increase in Compass sales
• Two all-new models – 2014 Jeep Cherokee mid-size SUV and 2014 Ram ProMaster van – arriving at dealerships across the country; first sales recorded in October for both new vehicles
• Ram Truck, Jeep and Dodge brand vehicles take top honors at the annual Texas Auto Writers Association (TAWA) Texas Truck Rodeo
• All-new 2014 Fiat 500L and all-new 2014 Jeep Cherokee each earn a Top Safety Pick from Insurance Institute for Highway Safety (IIHS)

Chrysler Group LLC has reported U.S. sales of 140,083 units, an 11 percent increase compared with sales in October 2012 (126,185 units), and the group’s best October sales since 2007.

The Chrysler, Jeep®, Dodge and Ram Truck brands each posted year-over-year sales gains in October compared with the same month a year ago. The Ram Truck brand’s 22 percent increase was the largest sales gain of any Chrysler Group brand during the month. Chrysler Group extended its streak of year-over-year sales gains to 43 consecutive months in October.

“After a choppy start to the beginning of the month, Chrysler Group sales accelerated in the second half of the month with renewed consumer confidence and the launch of our all-new Jeep Cherokee,” said Reid Bigland, Head of U.S. Sales. “Following a meticulous focus on quality, our new Jeep Cherokee began shipping to dealers and quickly selling which helped us to achieve our 43rd-consecutive month of year-over-year sales increases.”

The all-new 2014 Jeep Cherokee and the all-new 2014 Ram ProMaster went on sale in October, expanding the Chrysler Group product lineup. Six Chrysler Group vehicles logged their best October sales ever, including the Jeep Wrangler and Jeep Patriot, and the Dodge Journey crossover, Dodge Dart compact car and the Dodge Challenger. This was the Wrangler’s seventh sales record this year, including an all-time sales record in May. The Ram Cargo Van also logged its best October sales ever.

Chrysler Group finished the month with an 86 days supply of inventory (445,271 units). U.S. industry sales figures for October are projected at an estimated 15.7 million units Seasonally Adjusted Annual Rate (SAAR).

October 2013 U.S. Sales Highlights by Brand

Ram Truck Brand

Ram Truck brand sales were up 22 percent compared with the same month a year ago.  Sales of the Ram pickup truck were up 18 percent, its 42nd-consecutive month of year-over-year sales gains and its best October sales since 2004. The Ram Truck brand recorded its first sales of the all-new 2014 Ram ProMaster van in October.

The Ram Truck brand took home eight awards last month at the annual Texas Auto Writers Association Texas Truck Rodeo, including the Truck Line of Texas. The 2014 Ram 1500 was named Truck of Texas for the second-consecutive year, as well as Full-Size Truck and Luxury Truck of Texas. The 2014 Ram 2500 received the Heavy Duty Truck of Texas award and Best Technology award for its five-link coil rear suspension. The 2014 Ram ProMaster was named the Commercial Vehicle of Texas, while the Ram 1500 and Jeep Grand Cherokee shared the Best Powertrain award for the 3.0L EcoDiesel engine.

Sales of the Ram Cargo Van were up 120 percent, its best October sales ever.

Dodge Brand

Dodge brand sales were up 12 percent in October, the brand’s best October sales since 2005 and its 29th-consecutive month of year-over-year sales gains. The Dodge Dart, Dodge Challenger and Dodge Journey mid-size crossover each recorded their best October sales ever, while sales of the Dodge Charger sport sedan were up 60 percent.

Sales of the Dodge Grand Caravan were up 9 percent, the minivan’s best October sales in seven years. To celebrate 30 years of minivan leadership, the 2014 Dodge Grand Caravan 30th Anniversary Edition, available on both the SE and SXT models, is now on sale featuring unique content, including commemorative badging, special paint and black interior trim.

The Dodge Durango full-size SUV extended to 12-consecutive months its run of year-over-year sales gains with its 59 percent increase. The Durango was named the 2014 Full-Size SUV of Texas during TAWA’s Texas Truck Rodeo in October.

Jeep® Brand

Jeep brand sales were up 7 percent in October as all Jeep brand vehicles, excluding the all-new 2014 Jeep Cherokee, posted year-over-year sales gains. The Jeep Compass, with its 68 percent sales gain, recorded the largest percentage increase of any Jeep brand model in October. The Jeep Wrangler and Jeep Patriot each set a sales record for the month of October. The Wrangler has set a sales record in seven months this year, including an all-time record in May. Sales of the Jeep Grand Cherokee, the SUV of Texas for the fourth-consecutive year, were up 20 percent in October, its best October sales since 2005. The flagship Grand Cherokee also won Mid-Size SUV and Luxury Mid-Size SUV of Texas during last month’s Texas Truck Rodeo. The Wrangler took home the award for Off-Road Utility Vehicle of Texas.

The all-new Jeep Cherokee mid-size SUV went on sale in October in dealerships across the country, recording sales of 579 units in its partial month of sales. The Cherokee has already won an award in its first head-to-head vehicle competition – Compact SUV of Texas – in TAWA’s Texas Truck Rodeo. In addition, the Cherokee earned a Top Safety Pick from the Insurance Institute for Highway Safety in October.

The Cherokee completely redefines the mid-size SUV segment, delivering legendary Jeep 4x4 capability, a segment-first nine-speed automatic transmission, fuel economy improvements of more than 45 percent (versus the former Jeep Liberty model), superior on-road ride and handling, a cutting-edge, revolutionary design, world-class craftsmanship, class-exclusive technology and more than 70 advanced safety and security features.

Chrysler Brand

Chrysler brand sales were up 6 percent, the brand’s best October sales performance since 2007. Sales of the award-winning Chrysler Town & Country were up 28 percent, the minivan’s best October sales in six years. As the creator of the minivan segment, Chrysler Group is celebrating 30 years of the minivan this fall. Now on sale, the 2014 Chrysler Town & Country 30th Anniversary Edition is based on the Touring L model and features unique exterior and interior content. Town & Country sales are up 6 percent through October this year compared with the same period in 2012.

FIAT Brand

FIAT brand sales were down slightly in October compared with the same month a year ago. The Fiat 500e all-electric model, available in the state of California, logged its best sales month so far this year. Sales of the all-new 2014 Fiat 500L were up 26 percent in October versus the previous month. October was the 500L’s best sales month since launch in June. The 500L was named a 2013 Top Safety Pick in October by the Insurance Institute for Highway Safety. The 500L recorded the highest-possible rating in each of four IIHS tests to determine the Top Safety Pick. The innovative, four-door B-segment hatchback was one of two Chrysler Group vehicles to earn the designation during the latest round of IIHS evaluations. Top Safety Pick testing simulates a side impact, front moderate-overlap impact, roof-crush consistent with a rollover, and a rear collision capable of inducing whiplash.

(US) Chrysler recall #2 - Ram trucks require cluster upgrade

Chrysler Group LLC will recall an estimated 10,800 trucks – most of which are in dealer hands – to upgrade software that controls instrument-cluster illumination.

In-plant quality-control personnel discovered instrument-cluster backlighting may function intermittently on certain vehicles. Regulatory compliance requires that information displays be clearly legible.

Vehicle performance is unaffected and Chrysler Group is unaware of any accidents, injuries or complaints.

Chrysler Group engineers investigated and discovered the digital memory in some instrument clusters may not activate as intended.

Affected are Ram 1500, 2500 and 3500 pickups equipped with mid-line instrument clusters. Chrysler Group will update the cluster software at no charge to customers.

Chrysler Group will notify affected customers by mail next month.

Customers who are concerned may call 1-800-853-1403.