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Stellantis reports surprising 2020 results, is 'off to a flying start'

MILAN — Low global car inventories and cost cuts should boost Stellantis's profit margins this year, though a shortage of semiconductors and investments in electric vehicles could weigh on results, the newly-formed automaker said on Wednesday. The forecast came as Stellantis, created by the January merger of Peugeot-maker PSA and Fiat Chrysler (FCA), reported better-than-expected results for 2020 that sent its shares up around 3% in morning trading. "Stellantis gets off to a flying start and is fully focused on achieving the full promised synergies (from the merger)," Chief Executive Carlos Tavares said in a statement. Stellantis is the world's fourth largest carmaker, with 14 brands including Fiat, Peugeot, Opel, Jeep, Ram and Maserati. It said 2021 results should be helped by three new high-margin Jeep vehicles in North America and a strong pricing environment there. The U.S. market has driven profits for years at FCA and starts off as the strongest part of Stellantis. The group's guidance assumes no more significant lockdowns caused by the global COVID-19 pandemic, which shuttered auto plants around the world last spring. Stellantis should also get a lift as its starts to implement a plan aimed at delivering over 5 billion euros a year in savings, without closing any plants. Tavares has also pledged not to cut jobs. But a pandemic-related global shortage of semiconductors, used for everything from maximizing engine fuel economy to driver-assistance features, could hurt business. Auto industry executives have said the shortage should ease by the second half of 2021. Stellantis said its "electrification offensive" could also weigh on results this year. Automakers are racing to develop electric vehicles to meet tighter CO2 emissions targets in Europe and this week Volvo joined a growing number of carmakers aiming for a fully-electric line-up by 2030. Stellantis plans to have fully-electric or hybrid versions of all of its vehicles available in Europe by 2025, broadly in line with plans at top rivals such as Volkswagen and Renault-Nissan, although Stellantis has further to go to meet that goal. The carmaker is targeting an adjusted operating profit margin of 5.5%-7.5% this year. That compares with a 5.3% aggregated margin last year: 4.3% at FCA and 7.1% at PSA excluding a controlling stake in parts maker Faurecia, which is set to be spun-off from Stellantis shortly.

Ford Mustang Shelby GT350R named Road & Track Performance Car of the Year

With a 526-horsepower, 5.2-liter V8 that roars to 8,250 rpm, it's really hard to consider the 2016 Ford Shelby Mustang GT350R an underdog in any fight. However, the Shelby held the lowest as-tested price and was only middle of the pack in terms of power in Road & Track's 2016 Performance Car of the Year challenge. The 'Stang's numbers clearly didn't tell the whole story about the potent coupe because Ford's muscle car grabbed the title in this year's test. A model needs to be new or significantly updated to be eligible for the honor, and R&T found an impressive slate of eight candidates this year. The challengers included the Bentley Continental GT3-R, Cadillac ATS-V Coupe, Chevrolet Corvette Z06, Dodge Viper ACR, Mercedes-AMG GT S, and Porsche Cayman GT4. The Ferrari 488 GTB was the most expensive of the bunch with an as-tested price of $347,942, which is five times more than the Shelby. Once the group was together, R&T hustled them over curving roads and on the National Corvette Museum Motorsports Park. There was a lot to love about the Shelby, even in this impressive crew. "With a flat-plane crank and Sport Cup 2 tires, the GT350R is a Mustang turned up to 11," editor-in-chief Larry Webster said in the announcement of the results. The GT350R joins some great company. Past winners include the Porsche 911 GT3 last year and the Corvette in 2013. For some fantastic photography and the complete appraisal of these performance machines check out R&T's website for the full story. Related Video: ROAD & TRACK NAMES THE FORD MUSTANG SHELBY GT350R THE 2016 PERFORMANCE CAR OF THE YEAR New York, NY (November 9, 2015) – Road & Track today named the Ford Mustang Shelby GT350R the 2016 Performance Car of the Year, beating out seven of the world's best new sports cars. The article appears in the December/January issue, on newsstands November 17, and on RoadandTrack.com. "With a flat-plane crank and Sport Cup 2 tires, the GT350R is a Mustang turned up to 11," said Larry Webster, editor-in-chief of Road & Track. "Not only does the car have soul and harness so much firepower with such ease, but the real achievement here is that it's so approachable. It's a car you can't help but love." The Mustang Shelby GT350R was the winner by a runaway vote.

Dodge Demon makes so much torque, it needs stronger driveline parts

Torque is a lovely thing, a sweet and wonderful force that twists and pulls and can help propel a two-ton metal box forward at comical speeds. Torque is also fickle and will bend and break those same metal parts without a second thought, which is why the new Dodge Demon is compensating for its increased torque with some new re-engineered and reinforced parts. And there's software intended to combat wheel hop, which one of the most dramatic ways torque can break stuff. Week 8's video, "Race-hardened Parts," gives a hint towards what all these new parts can do. While we still don't know how much torque the Demon will throw out, we do know it's enough to warrant an upgraded prop shaft, half shafts, and a differential housing. The Challenger Hellcat, which is the basis for the Demon, makes 650 pound-feet of torque already. The new parts will go a long way toward making sure the work from the Demon's engine is properly translated into motion by those Nitto drag radials. The new prop shaft uses high-strength steel, heat-treated stub-shafts, and increases the tube thickness by 20 percent for a 15 percent increase in torque capacity. Additionally, Dodge says the upgraded differential housing allows for a 30 percent increase in torque capacity by using heat-treated A383 aluminum alloy and a higher strength shot-peened gear set. The 41-spline half shafts that deliver 20 percent increased torque capacity through the use of high-strength low alloy steel and 8-ball joints. In addition to the hardware, the Launch Assist software has been tuned to help alleviate wheel hop. Dodge says the Demon is the first factory production car that uses wheel speed sensors to detect hop and momentarily cut torque to compensate. This means a driver can keep their foot planted on the floor while the computer sorts out the traction. Previously, the best solution was to back off the throttle to manually cut the load. Finally, the Dodge Demon will offer a four-point harness mounting bar as an optional accessory. The part will be supplied by Speedlogix and fits in place of the deleted rear seat. Customers can install the bar without having to hack apart their cars to find a proper mounting point. Look for more teasers and info on ifyouknowyouknow.com in the lead-up to the Demon's debut at the 2017 New York Auto Show. Related Video: Image Credit: FCA Dodge Performance dodge demon dodge hellcat