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Stellantis is official: FCA and PSA merger finally sealed

MILAN — Fiat Chrysler and PSA sealed their long-awaited merger on Saturday to create Stellantis, the world's fourth-largest auto group with deep enough pockets to fund the shift to electric driving and take on bigger rivals Toyota and Volkswagen. It took over a year for the Italian-American and French automakers to finalize the $52 billion deal, during which the global economy was upended by the COVID-19 pandemic. They first announced plans to merge in October 2019, to create a group with annual sales of around 8.1 million vehicles. "The merger between Peugeot S.A. and Fiat Chrysler Automobiles N.V. that will lead the path to the creation of Stellantis N.V. became effective today," the two automakers said in a statement. Shares in Stellantis, which will be headed by current PSA Chief Executive Carlos Tavares, will start trading in Milan and Paris on Monday, and in New York on Tuesday. Now analysts and investors are turning their focus to how Tavares plans to address the huge challenges facing the group – from excess production capacity to a woeful performance in China. Tavares will hold his first press conference as Stellantis CEO on Tuesday, after ringing NYSE's bell with Chairman John Elkann. FCA and PSA have said Stellantis can cut annual costs by over 5 billion euros ($6.1 billion) without plant closures, and investors will be keen for more details on how it will do this. Marco Santino, a partner at consultants Oliver Wyman, said he expected Tavares to disclose the outlines of his action plan soon, but without divulging too many details at first. "He has proven to be the kind of person who prefers action to words, so I don't think he will make loud statements or try to over-sell targets," he said. Like all global automakers, Stellantis needs to invest billions in the years ahead to transform its vehicle range for the electric era. But other pressing tasks loom, including reviving the group's lagging fortunes in China, rationalizing its huge global empire and addressing massive overcapacity. "It will be a step by step process, also to allow the market to better appreciate every single move. I don't think we will have all the details before one year," Santino said.

The Dodge Demon gets a Drag Mode and a lesson in Newtonian physics

It's Thursday morning, which means we have more news on the upcoming Dodge Demon, the pumped-up Challenger Hellcat variant that's looking to cause mayhem at a drag strip near you. This week's video, "Third Law," shows the Demon's revised suspension in action and displays another one of SRT's cryptic messages. Dodge claims that the 6.2-liter supercharged Hemi V8 in the Hellcat twins is compromised because it's fitted to a car that needs to be comfortable on the street in addition to a performer on the drag strip. Not so with the Demon, as Dodge says the car is "designed to be highly competent in all drive modes and configurations," including the all-new Drag Mode. Dodge says details about the new mode will trickle out over the next few weeks, but all the info this week focused on suspension. The "Third Law" in this week's title refers to Isaac Newton and motion: "When one body exerts a force on a second body, the second body simultaneously exerts a force equal in magnitude and opposite in direction on the first body." We're not sure what Newton would have thought seeing the sidewall wrinkling Nitto NT05R drag radials in action, but he'd probably have a reaction of some sort himself. An ideal suspension setup for the drag strip makes for a poor setup on the road. As Dodge puts it, the "old school" way to set up a drag car was to "get the quickest reacting springs upfront, the softest rebound front shocks that wouldn't restrict the springs' reaction, remove any restrictions (sway bar) and increase the compression of the rear shocks." This would give a car great front to rear weight transfer but made for very poor lateral direction control, meaning minor corrections were difficult. The Demon's Drag Mode will use electronics to give the car the best combination of launch and lateral stability. Dodge listed some of the parts to help aid in this goal. They also gave us a few equations that we can't make sense of. Let us know if you have any clues. Hardware: 35 percent lower rate front springs/28 percent lower rate rear springs 75 percent lower rate hollow front sway bar/44 percent lower rate rear sway bar Drag-tuned Bilstein Adaptive Damping Shocks Software: Rear = F/F and Front = F/S F/F – F/S maintained @ wide open throttle (WOT) F/F – F/F < WOT Traction control disabled/ESC maintained Result: 13.5=575@500 Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Dodge Viper might not live past 2017

The Dodge Viper might be running out of venom because the muscle-bound sports car could be on the road to being cancelled in just a few years. According to Allpar, the proposed deal between the United Auto Workers and FCA US would close the Connor Avenue Assembly plant, which produces the Viper, in 2017. The proposed union contract doesn't give a reason for closing the factory, but the decision is understandable if frustrating. The plant was idled twice last year to reduce production of the Viper to match flagging demand. A $15,000 price cut for the coupe eventually allowed for a sales surge, but that appetite hasn't continued in 2015. From January through September of this year, the company has only moved 503 of the sports cars, down eight percent. To further spur demand, Dodge has employed a few other tactics like the 1 of 1 program for buyers to personalize their Vipers, and the introduction of the brutally track-focused ACR. In a world where high-end sports cars are continuing to get friendlier for both their drivers and the environment, the Viper remains a holdout with a big, naturally aspirated V10. Even with the addition of some electronic aids on the latest Vipers, the snake still demands respect from those behind the wheel. Respect is fine, but sales are what matter to FCA – and the harsh reality is that a lack thereof might force the Viper into retirement, whether we like it or not.