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Stellantis reports $15B profit in first year of merger

FRANKFURT, Germany — Automaker Stellantis said Wednesday that it made 13.4 billion euros ($15.2 billion) in its first year after it was formed from the merger of Fiat Chrysler Automobiles and PSA Group. The earnings nearly tripled profits compared with its pre-merger existence as two separate companies, as the maker of Jeep, Opel and Peugeot vehicles exploited cost efficiencies from combining the businesses. The result compared to a combined 4.79 billion euros for the separate companies in 2020 before the merger, which took effect on Jan. 17, 2021. Revenue for the combined business rose 14%, to 152 billion euros. CEO Carlos Tavares said the results “prove that Stellantis is well positioned to deliver strong performance" and had overcome “intense headwinds” during the year. Automakers have struggled with shortages of key parts such as semiconductor electronic components and rising costs for raw materials as the global rebound from the worst of the coronavirus pandemic brings more demand. The company said the benefits of the merger were worth some 3.2 billion euros during the year. Mergers can lead to streamlined costs as companies combine functions and spread fixed costs over a larger revenue base. The company accelerated its rollout of battery-powered vehicles, with sales of low-emission vehicles reaching 388,000 — an increase of 160%. Stricter environmental regulations in Europe and China are pushing automakers to roll out more electric vehicles with longer range. Stellantis started production of a hydrogen fuel cell commercial van under its Opel brand in December. Stellantis' other brands include Chrysler, Citroen, DS, Fiat, Maserati, Ram and Vauxhall. Related video: Earnings/Financials Chrysler Dodge Ferrari Fiat Jeep RAM Citroen Opel Peugeot Vauxhall

Stellantis mega-merger gets approval from FCA, PSA shareholders

MILAN — Shareholders of Fiat Chrysler and PSA Peugeot decisively voted Monday to merge the U.S.-Italian and French carmakers to create worldÂ’s 4th-largest auto company. Addressing separate meetings, both PSA Peugeot CEO Carlos Tavares and Fiat Chrysler Chairman John Elkann spoke of the “historic” importance of the vote, which combines legacy car companies that helped write the industrial histories of the United States, France and Italy. Before the merger is finalized, shares in the new company, to be called Stellantis, must the launched. It will be traded in Milan, New York and Paris. The marriage of PSA Peugeot and Fiat Chrysler Automobiles is built on the promise of cost-savings in the capital-hungry industry, but what remains to be seen is if it will be able to preserve jobs and heritage brands in a global market still suffering from the pandemic. The deal will create the worldÂ’s fourth-largest carmaker, with the capacity to produce 8.7 million cars a year, behind Volkswagen, Toyota and Renault-Nissan, and create 5 billion euros in annual synergies.  “We are fully aware of the fact that together we will be stronger than individually,'' PSA CEO Carlos Tavares told a virtual gathering of eligible shareholders. “The two companies are in good health. These two companies have strong positions in their markets.” The new company will put together under one roof French mass-market carmakers Peugeot and Citroen, top-selling Jeep and Italian luxury and sports brands Maserati and Alfa Romeo - pooling companies that have helped define the industry in the United States, France and Italy. While the tie-up is billed as a merger of equals, the power advantage goes to PSA, with Tavares running Stellantis and holding the tie-breaking vote on the 11-seat board. Tavares is set to take full control of the company early this year, possibly by the end of January. Fiat Chrysler chairman John Elkann, heir to the Fiat-founding Agnelli family and Fiat ChryslerÂ’s biggest shareholder, will be the Stellantis chairman. Fiat Chrysler CEO Mike Manley will head North American operations, which is key to Tavares' long-time goal of getting a U.S. foothold for the French carmaker he has run since 2014, and the clear money-maker for Fiat Chrysler. Such a deal was long wanted by Fiat ChryslerÂ’s long-time CEO Sergio Marchionne, who had predicted the necessity of consolidation in the industry. He was unable to find a deal before his sudden death in July 2018.

164K Jeep Cherokees recalled to protect liftgate from moisture

FCA is recalling 164,003 examples of the 2014 and 2015 Jeep Cherokee because moisture can damage the power liftgate controls on models that are equipped with that feature. Regionally, this includes 99,436 of them in the US, 13,195 in Canada, 2,406 in Mexico, and 48,966 outside of NAFTA. The problem came to light after the automaker started investigating a fire in one of the SUVs. There were no injuries, though. According to FCA US' research, the power hatch's control module potentially can be exposed to water. This can cause a short circuit and possibly a fire, as in this case. Until the issue is repaired, the company is advising owners to keep the cargo area dry on Cherokees equipped with this feature. To fix things, dealers will install a shield around the controls to protect them from moisture and will replace any modules showing exposure to water. Statement: Water-Shield Installation June 24, 2015 , Auburn Hills, Mich. - FCA US LLC is voluntarily recalling an estimated 99,436 SUVs in the U.S. to install shields that protect their power liftgate control modules, and related components, from moisture. FCA US LLC began an investigation after learning of a reported vehicle fire. The probe revealed power liftgate control modules in certain SUVs may be inadvertently exposed to water. This may cause a short-circuit, creating a fire hazard. However, the Company is unaware of any related injuries or accidents. The campaign affects model year 2014 and 2015 Jeep Cherokee SUVs, but is limited to vehicles equipped with power liftgates. An estimated 13,195 customers are affected in Canada, along with an estimated 2,406 customers in Mexico and 48,966 outside the NAFTA region. The estimated total recall population is 164,003. All affected customers will be advised when they may schedule service. If the modules show signs of water exposure, they will be replaced. All recall-related work will be performed free of charge. In the interim, the cargo areas of 2014-15 Cherokees equipped with power liftgates should be monitored and kept dry. Customers with questions may call the FCA US Customer Information Center at 1-800-853-1403.