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Stellantis reports record margins, $7B profits despite chip shortage

MILAN — Automaker Stellantis on Tuesday said it achieved faster-than-expected progress on synergies and record margins in its first six months as a combined company, despite suffering 700,000 units in lower production due to interruptions in the semiconductor supply chain. The company — formed from French carmaker Peugeot PSAÂ’s takeover of the Italian-American company Fiat Chrysler — reported net profit of 5.9 billion euros ($7 billion) in the first half of 2021, compared with a loss 813 million euros during the same period a year earlier, which was impacted by the coronavirus restrictions around the globe. Shipments rose 44% to 3.2 million units, while revenues rose 46% to 75 billion euros. “We are very pleased with the speed with which the new team has begun to execute as one company, as Stellantis,Â’Â’ Chief Financial Officer Richard Palmer told reporters. Semiconductor shortages accounted for 200,000 units of production losses in the first quarter and 500,000 in the second quarter. Semiconductors are used more than ever before in new vehicles with electronic features such as Bluetooth connectivity and driver assist, navigation and hybrid electric systems. Stellantis achieved 1.3 billion euros in cost savings in the first half, mostly by sharing investments in new technologies and platforms, which Palmer said was a faster rate than initially forecast. It aims to achieve 80% of the targeted 5 billion in cost savings by 2024. “These synergies allow us to continue to invest in the electrification strategy, which we talk about every day,” Palmer said. Stellantis, which lags competitors in rolling out electric vehicles, plans to launch 21 fully electric or plug-in gas electric hybrid vehicles over the next two years. North American posted record profitability on global sales of Ram trucks and the strong launch of the Jeep Wrangler 4xe, which was the best-selling plug-in gas electric vehicle in the United States in the second quarter. Stellantis was the market leader in South America and second in Europe. The results were presented on a pro-forma basis, taking into account the performance of each of the carmakers as separate entities during 2020. Related video: 2021 Jeep Wrangler Rubicon 392 Inside and Out

Dodge Challenger ADR prototypes spied with massive rubber

In an effort to give the Dodge Challenger one last hurrah before making the switch to the Giorgio platform in 2018, Automotive News reports that the automaker will come out with the Challenger ADR. The ADR, which stands for American Drag Racer, is expected to be a wide-body, Hellcat-powered variant that is closely based off of the current model. The report seems to have merit, as photographers have captured Challenger prototypes testing with massive tires. The prototypes look extremely similar to the current Challenger SRT Hellcat with the same hood scoop, front fascia design, rear spoiler construction, and rear end. The white and purple vehicles, though, are wearing extremely wide tires. The extra-wide rubber on the prototypes appear to have a similar tread design as the ones found on the Dodge Viper ACR, which features the grippy Kumho Ecsta V720. While the ACR wears 295 mm tires at the front, the car's rear tires are massive at 355 mm. The tires found on the prototype don't appear to be as large as the ones found on the ACR, but are expected to be larger than the current Challenger SRT Hellcat's, which are Pirelli P Zero Neros measuring 275 mm at all four corners. The Challenger ADR, with its wider, stickier tires is expected to cater to drivers that are looking to put all of the supercharged 6.2-liter V8's power to the ground. The rear-wheel-drive ADR is expected to come with a wide-body kit, which is missing from the prototypes. The Hellcat-powered, wide-body Challenger ADR is expected to make an appearance later in 2017, with an all-wheel-drive model (sans Hellcat engine) known as the GT AWD following closely thereafter. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Featured Gallery Dodge Challenger ADR Spy Shots View 16 Photos Spy Photos Dodge Coupe Performance prototype testing dodge challenger srt hellcat

Question of the Day: Most heinous act of badge engineering?

Badge engineering, in which one company slaps its emblems on another company's product and sells it, has a long history in the automotive industry. When Sears wanted to sell cars, a deal was made with Kaiser-Frazer and the Sears Allstate was born. Iranians wanted new cars in the 1960s, and the Rootes Group was happy to offer Hillman Hunters for sale as Iran Khodro Paykans. Sometimes, though, certain badge-engineered vehicles made sense only in the 26th hour of negotiations between companies. The Suzuki Equator, say, which was a puzzling rebadge job of the Nissan Frontier. How did that happen? My personal favorite what-the-heck-were-they-thinking example of badge engineering is the 1971-1973 Plymouth Cricket. Chrysler Europe, through its ownership of the Rootes Group, was able to ship over Hillman Avanger subcompacts for sale in the US market. This would have made sense... if Chrysler hadn't already been selling rebadged Mitsubishi Colt Galants (as Dodge Colts) and Simca 1100s as (Simca 1204s) in its American showrooms. Few bought the Cricket, despite its cheery ad campaign. So, what's the badge-engineered car you find most confounding? Chrysler Dodge Automakers Mitsubishi Nissan Suzuki Automotive History question of the day badge engineering question