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Stellantis won't race to split electric vehicles from fossil fuel cars

MILAN - Stellantis is not considering splitting its electric vehicle (EV) business from its legacy combustion engine operation, its finance chief said on Thursday, as the carmaker presented above-expectation revenue data for the first quarter. Chief Financial Officer Richard Palmer told analysts he did not see huge benefits in the kind of separations pursued by rivals such as France's Renault and U.S. Ford. "We need to manage the company and the assets we have through this transition," he said. "There are benefits to having the cash flow being generated by the internal combustion business for the investments we need to make." Palmer said the group, formed by a merger last year of Fiat Chrysler and Peugeot maker PSA, was not averse to considering adjusting its structure "but we aren't anticipating any big changes." Palmer's comments came after the world's fourth largest carmaker said its net revenue rose 12% to 41.5 billion euros ($44.1 billion) in the January-March period, as strong pricing and the type of vehicles sold helped offset the impact of the semiconductor shortage on volumes. That topped analyst expectations of 36.9 billion euros, according to a Reuters poll. Milan-listed shares were up 0.5% by 1415 GMT, in line with Italy's blue-chip index. The impact of the chip crunch was evident in the decline in shipment figures which fell 12% in the quarter to 1.374 million vehicles. It was a similar story for Germany's BMW which posted higher revenues on Thursday and a decline in car sales. Riding the Recovery Stellantis, whose brands also include Citroen, Jeep and Maserati, confirmed its 2022 forecasts for a double-digit adjusted operating income margin, after 11.8% last year, and a positive cash-flow despite supply and inflationary headwinds. Morgan Stanley analysts said after the results that Stellantis had better management than many peers and benefited from its significant exposure to a stronger U.S. economy and a European recovery from the COVID-19 pandemic. They also said it was less affected by a slowing Chinese economy. Palmer said it was important for the group to maintain double-digit margins and keep delivering positive cash flows. "A 12% increase in revenue with a 12% decrease in volumes indicates a very strong performance on price and mix, which augurs well for our margin performance," he said. He said semiconductor supply problems were expected to ease this year with continued improvements in 2023.

Dodge Charger and Challenger go Plum Crazy for Woodward Dream Cruise

Dodge will be rolling through a purple haze at the 2015 Woodward Dream Cruise on August 15 with the reintroduction of Plum Crazy to the color options on most trims of the 2016 Challenger and Charger. To premiere the latest use of the wild shade, the brand's display at the annual Detroit-area automotive event will be showing off violet versions of the 2016 Dodge Challenger 392 Hemi Scat Pack Shaker and Charger R/T Scat Pack. The brash tone originally debuted in 1970, but Dodge has kept the lavender hue special in recent years by limiting the option to specific trims. It was last offered during the 2014 model year on R/T and SRT trims of the two vehicles. Practically any buyer will be able to go Plum Crazy if they want. On the Challenger, the color will be available on the SXT Plus, R/T models, Hemi Scat Pack Shaker, SRT 392, and SRT Hellcat trims. The choices for the Charger will be similarly broad, including the SXT when ordered with 20-inch wheels, R/T versions, SRT 392, and SRT Hellcat. Customers desperately wanting a vehicle in the insanely violet shade will be able to place the first orders in September, and dealers will get the chance from October through the end of the year. Production of the lavender muscle cars will then commence in November. Dodge Debuts Plum Crazy Heritage Hue for 2016 Challenger and Charger at Woodward Dream Cruise, Provides Collector-demanded Production Numbers for High-impact Paint Colors New 2016 Dodge Challenger 392 HEMI Scat Pack Shaker and Charger R/T Scat Pack Models in Plum Crazy Will Be Shown at the Dodge Display at 13 Mile and Woodward Ave in Royal Oak, Mich.

FCA plants skipping summer shutdown to keep up with demand

Hopefully, some FCA US factory employees don't have big plans for the usual summer shutdown, because the automaker is keeping several plants running this year. Demand is so high that the company wants to keep models rolling off the assembly lines. Four FCA US assembly plants, all the engine factories, and some locations that build transmissions are staying open throughout the summer, according to the Detroit Free Press. Usually, these sites would see a two-week shutdown for the company to retool and perform repairs. This year, factories are staying open for FCA to support its strong sales. The lines that remaining humming through the summer show an inclination toward the automaker's popular SUV's and crossovers. They include the Jefferson North Assembly Plant in Michigan that builds the Jeep Grand Cherokee and Dodge Durango; Saltillo Van Assembly in Mexico that constructs the Ram ProMaster; Toledo Assembly Complex in Ohio that produces the Cherokee and Wrangler; and Toluca Assembly in Mexico that makes the Dodge Journey and Fiat 500. Related Video: News Source: The Detroit Free PressImage Credit: Bill Pugliano / Getty Images Plants/Manufacturing Dodge Fiat Jeep RAM FCA dodge journey fca us ram promaster Jefferson North Assembly Plant