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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.

Chrysler recalling 67k trucks with manual transmissions

Earlier this month, Chrysler announced the recall of some 280,000 pickup trucks over concerns that their axles could seize up. Now the automaker has announced an entirely separate recall of another 66,819 trucks over the springs that could break in the clutch ignition interlock switch. The recall affects Dodge Ram 1500, 2500 and 3500 pickups, as well as the Dodge Dakota and Mitsubishi Raider. The issue is relevant only to those trucks fitted with manual transmissions, from the 2006 and 2007 model years and manufactured between July 1, 2005, and July 31, 2006. Since a broken spring could, according to statements issued by the National Highway Traffic Safety Administration and FCA US LLC (previously known as the Chrysler Group) prevent the vehicle from starting, or cause it to move unintentionally once the ignition kicks over, the automaker will begin notifying owners of the affected vehicles just before Valentine's Day to bring their trucks into their local dealers to have the clutch ignition interlock switch replaced. FCA emphasizes, however, that the unintended movement would only occur "in rare cases" and only "if recommended starting procedures are not followed." Only one such case is known to have occurred, but it did regrettably result in a fatality. Statement: Clutch Ignition Interlock Switch December 29, 2014 , Auburn Hills, Mich. - FCA US LLC is launching a voluntary global recall of an estimated 66,819 older-model pickup trucks equipped with manual transmissions. The Company will replace their clutch ignition interlock switches at no charge to customers. An investigation by FCA US engineers discovered switches in certain model-year 2006 and 2007 pickups may be equipped with spring wire that differs from wire used in previous switches. The alternate wire may break and, as a result, the vehicles may not start. In rare cases, a vehicle may – if recommended starting procedures are not followed – exhibit unintended movement when its ignition key is turned. The Company is aware of one fatality related to this campaign. It stemmed from the single known accident involving this population of vehicles. The recall covers certain Dodge Dakota, Dodge Ram 1500, 2500, 3500 and Mitsubishi Raider pickups. Switches with the alternate wire were not used in any vehicles produced before July of 2005, or after June of 2006. The Dakota and Raider are no longer in production.

The final-year Viper special editions sold out so fast Dodge is adding more

Viper collectors don't mess around. After Dodge opened ordering for its 25th anniversary 2017 Viper models – some of the last ones that will be built – all of the cars were spoken for in just five days. The company managed to sell 206 cars, an average of about 41 per day. Compare that to the 241 Vipers sold through May of this year and you can see why special editions make good business sense. Demand was so strong that Dodge will add a sixth special-edition for the Viper's last year of production. Within the group of five initial special packages, the winner was the 1:28 Edition ACR; all 28 went in 40 minutes. Dodge sold the 31 VooDoo II Edition ACRs in two hours, while 25 Snakeskin Edition GTCs and 100 GTS-R Commemorative Edition ACRs took two days to sell out. The 22 Dodge Dealer Edition ACRs took five days – apparently the dealers were too busy taking orders for the other 184 cars they didn't have time to order their own. The additional anniversary car is called the Snakeskin ACR. Dodge will build "up to" 31 of them, which we're pretty sure means exactly 31 if the previous demand is any indicator. The count matches the 2010 run of Snakeskin ACRs and will take the final-edition total to 237. We don't have any photos of that one yet, but you can get a good idea of what it will look like from the Snakeskin GTC. This one features Snakeskin Green paint, obviously, with a custom snakeskin-patterned SRT stripe, the ACR Package, the Extreme Aero Package, carbon-ceramic brakes, the ACR interior, a serialized Snakeskin badge on the instrument panel, and a custom car cover with the owner's name by the door. It will be available to order in the middle of this month, which means it will be sold out well by the end of the month. Chances are these and many of the others will go to mega-collectors like Wayne and D'Ann Rauh of Texas, who, at last count, owned 79 Vipers. Seventy-nine. Like we said, Viper collectors don't mess around. Related Video: