Fiat Chrysler shares plummet 12 percent on weak outlook

Rebecca Cook | Reuters
Fiat Chrysler Automobiles assembly workers build 2019 Ram pickup trucks at the FCA Sterling Heights Assembly Plant in Sterling Heights, Michigan, October 22, 2018.

Fiat Chrysler shares crashed by more than 12 percent Thursday morning after the Italian-American automaker forecast a weak outlook for 2019.

The automaker said it expects results in the first half of the year to be down over last year, in part, because the company will not be selling two generations of the Jeep Wrangler side-by-side, as it did in 2018. It is also planning some Wrangler production downtime to retool factories for launch of the plug-in hybrid version of the iconic off-road machine in early 2020.

The company also said continued actions to manage dealer inventories will also hit its finances in the first half of the year. It is also facing higher-than-expected capital expenditures, shelling out roughly 500 million euros in connection with U.S. diesel emissions cases. It's also paying an effective tax rate that's about 25 percent higher than it was in 2018, mostly due to changes in the U.S.

Fiat Chrysler said expects the second half of the year to pick up from sales of its recently released Jeep Gladiator mid-size pickup truck and its heavy duty Ram pickup trucks, introduced at the Detroit auto show.

The automaker said it expects total industry sales for North America to decline in 2019 to 17.2 million, down from 17.7 million in 2018, the automaker said in a presentation to investors.

Fiat Chrysler shares tumble as 2019 guidance disappoints

MILAN (Reuters) – Fiat Chrysler (FCA) shares fell 11 percent on Thursday after weaker-than-expected guidance for profits and industrial free cash flow this year raised doubts about the Italian-American carmaker’s longer-term targets. FILE PHOTO: A Fiat Chrysler Automobiles (FCA) sign is seen at its U.S. headquarters in Auburn Hills, Michigan, U.S. May 25, 2018. REUTERS/Rebecca… Continue reading Fiat Chrysler shares tumble as 2019 guidance disappoints

FCA – 2018 FULL YEAR AND FOURTH QUARTER RESULTS

Following is a summary of the “FCA: 2018 full year and fourth quarter results” press release. A PDF of the complete press release is attached to this email. The document is also available in the media section of the FCA corporate website:https://www.fcagroup.com/it-it/pages/home.aspxFCA reports record full year results, including Magneti Marelli: Adjusted EBIT at €7.3 billion,… Continue reading FCA – 2018 FULL YEAR AND FOURTH QUARTER RESULTS

Toyota debuts new Tacoma to protect its crown as No. 1 midsize pickup from encroaching US rivals

Source: Toyota
2020 Toyota Tacoma TRD Off-Road

The pickup wars are spreading.

Toyota refreshed its best-selling Tacoma mid-size pickup trucks with Apple Car Play, larger touch screens and other features drivers have come to expect in today's utility vehicles, the company said Thursday. The Japanese automaker's move comes as American automakers — not content to rule the full-size segment —release smaller trucks that threaten the one category where Toyota has managed to hold its own with the Big 3 in Detroit.

Source: Toyota
2020 Toyota Tacoma Limited

The Tacoma has led the mid-size pickup segment in sales in the U.S. for the last 14 years, and the company is anxious to hold onto that crown. Ford just brought back the Ranger mid-size pickup truck, and Chevrolet has been successful with its Colorado.

Even Jeep is getting into action. Fiat Chrysler's brand known mostly for sport utility vehicles launched the Gladiator pickup at the Los Angeles Auto Show late last year. As the historical leader in the segment, Toyota has the most to lose.

The good news is this segment is growing overall, as the broader market turns toward utility vehicles. Mid-size pickup sales are expected to grow from about 3 percent of the total market in 2018 to 4 percent by 2021, according to data from LMC Automotive, a firm that tracks the auto industry.

Source: Toyota
2020 Toyota Tacoma Limited

The number of models is also expected to grow, reversing a multi-year pullback in the segment. In 2010, there were 11 mid-size pickup trucks to choose from, according to LMC. But there were only five models from 2014 to 2018. But again, by 2021, that is expected to more than double again back to a total of 11.

Source: Toyota
2020 Toyota Tacoma TRD Off Road

Toyota's refresh is not a dramatic redesign, said IHS Markit analyst Stephanie Brinley. But it's adding some key upgrades, such as an improved infotainment systems with Apple Car Play, and a few other features that customers have come to expect in new vehicles. A larger touchscreen in the truck's console will come standard on every model. Each trim level will come with upgrades specific to that variant, such as new grille designs and new headlights and taillights.

Source: Toyota
2020 Toyota Tacoma TRD Pro

In addition to overhauling the Tacoma, Toyota is beefing up its TRD Pro off-road racing lineup, adding a TRD Pro version of its three-row Sequoia sport utility vehicle. Toyota already makes TRD Pro versions of its Tacoma and Tundra pickups and its 4Runner SUV.

Source: Toyota
2020 Toyota Tacoma TRD Pro

Off-road and sporty on-road variants of pickup trucks and SUVs have been around for a long time, but automakers seem to be beefing up their selection of packages and options. Automakers are looking to leverage the shift to trucks and SUVS as an opportunity to find new ways to package features and capabilities to net a few more customers wherever they can.

“Every type of vehicle, every capability, every price point is looking to be exploited,” Schuster said. “It is a fight for customers and a fight for market share.”

Fiat Chrysler, Bosch agree to pay $66 million in diesel legal fees: filing

WASHINGTON (Reuters) – Fiat Chrysler Automobiles NV and Robert Bosch have agreed to pay lawyers representing owners of U.S. diesel vehicles $66 million in fees and costs, according to court filing on Wednesday and people briefed on the matter. FILE PHOTO: A screen displays the ticker information for Fiat Chrysler Automobiles NV at the post… Continue reading Fiat Chrysler, Bosch agree to pay $66 million in diesel legal fees: filing

Freudenberg Acquires Lithium Battery Maker XALT Energy

German company Freudenberg Sealing Technologies has increased its stake in Midland, Mich.-based XALT Energy from 31% in March 2018 to more than 50%, becoming a majority stakeholder of the company. Within a few years, Freudenberg intends to acquire the remaining shares. XALT Energy is a small lithium-ion battery developer and manufacturer, which supplies batteries, for example, for New… Continue reading Freudenberg Acquires Lithium Battery Maker XALT Energy

Cybersecurity firms say high-tech upgrades, self-driving tech make new cars easy targets for hackers

XtockImages | Getty Images

As auto makers roll out ever more sophisticated features to make your daily commute easier, the upgrades are also making your new car more vulnerable to cyberattacks, according to a new report.

“As more connected vehicles hit the roads, software vulnerabilities are becoming accessible to malicious hackers using cellular networks, Wi-Fi, and physical connections to exploit them,” data protection research group the Ponemon Institute said in a report released Wednesday. “Failure to address these risks might be a costly mistake, including the impact they may have on consumer confidence, personal privacy, and brand reputation.”

Some 84 percent of security professionals and auto engineers surveyed worry that automakers — which are loading new cars with infotainment systems, self-driving features, Wi-Fi, cellular connections and more — aren't keeping pace with the rapidly changing security threats, according to the study commissioned by cybersecurity firms SAE International and Synopsys. The many and varied systems leave companies and consumers vulnerable to security breaches, the report said.

“Unauthorized remote access to the vehicle network and the potential for attackers to pivot to safety-critical systems puts at risk not just drivers' personal information but their physical safety as well,” the study found.

Back in 2015, hackers took over a Jeep Cherokee in order to show how they could infiltrate the system and control steering, brakes and transmission — all from a laptop miles away. Fiat Chrysler, which makes the Jeep, issued a warning to vehicle owners to go to update their cars online, but some systems are still vulnerable.

“The industry has been slowly moving to a software-based environment, and as that's happened a lot of researchers found weaknesses and those weaknesses are now being used by various types of attackers,” said Art Dahnert, automotive security practice lead with Synopsis.

The survey was sent out to over 15,000 IT professionals, product developers and automotive engineers, and a final sample consisted of 593 responses.

A majority of those surveyed said automakers don't have enough resources to combat the threats, and 62 percent of those surveyed said their organizations do not have the cybersecurity skills needed to protect themselves.

The study is one of the latest efforts to show how smart technology can make vehicles vulnerable, especially when smart cars are on the rise. The Insurance Information Institute estimates 25 percent of cars on the road in 2030 will autonomous, or self-driving. And IHS Markit estimates that connected cars will make up 65 percent of new car sales by 2020.

Symantec, for example, introduced a car security offering in 2016. BlackBerry, a longtime cell phone maker, ventured into automotive safety through BlackBerry QNX, a software focused on safety that is now in over 120 millions cars.

“The biggest thing related to security is managing the life cycle of software and managing the life cycle of security; You constantly have to manage the security on a daily basis,” said Kaivan Karimi, senior vice president and co-head of BlackBerry Technology Solutions. “It's an ongoing process of securing the life cycle of the car.”

Automakers are also going public with their efforts to keep their cars safe. Mitsubishi went public Jan. 21 with its latest technology to protect connected cars against increasing threats.

“Automotive companies are still building up needed cyber security skills and resources,” according to the survey. “Sixty-three percent of respondents stated that they test less than half of hardware, software, and other technologies for vulnerabilities.”

Dahnert said the automotive industry should work on hiring more people who understand automotive-related security issues and train employees to watch out for potential issues.

FBI's tips for keeping your vehicle safe:

Keep your software up to dateExercise caution when making modifications to vehicle's softwareUse discretion when connecting third-party devicesBe aware of who has physical access to your car

Waymo cooperates with Renault-Nissan-Mitsubishi alliance

Renault-Nissan-Mitsubishi’s alliance is expected to partner with Google’s sister Waymo. The enterprise Waymo. a sister company of Google, is considered the industry leader in the field of autonomous driving. The company had its first robotic taxi service in Arizona last December started and drives around with Level 4 vehicles. German manufacturers are not ready yet… Continue reading Waymo cooperates with Renault-Nissan-Mitsubishi alliance

Renault-Nissan to work with Google’s Waymo on driverless cars

TOKYO: The three-way alliance of Renault, Nissan and Mitsubishi Motors is planning a deal to work with Google’s Waymo to jointly develop self-driving taxis, Japan’s Nikkei said Tuesday. The three automakers are finalising tie-up negotiations with Waymo, a Google-affiliated developer of self-driving car technology, the business daily said on its website. The two sides are… Continue reading Renault-Nissan to work with Google’s Waymo on driverless cars

Fiat Chrysler recalls 8,82,000 pickup trucks for steering, pedal issues

WASHINGTON: Fiat Chrysler Automobiles NV said on Tuesday it would recall 8,82,000 pickup trucks worldwide in two new recalls to address steering and pedal issues. The Italian-American automaker said it was recalling about 6,60,000 heavy duty Ram 2,500 and 3,500 pickup trucks from the 2013 through 2017 model years, including 5,74,000 in the United States,… Continue reading Fiat Chrysler recalls 8,82,000 pickup trucks for steering, pedal issues