1973 Lancia Fulvia Low Miles Survivor. Collectors on 2040-cars

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The Chrysler brand could be axed under Stellantis management

MILAN — While running NissanÂ’s North American operations from 2009 to 2011, Carlos Tavares had a reputation for closely watching costs with little tolerance for vehicles or ventures that didnÂ’t make money. Experts say that means Tavares, currently the head of PSA Group, is likely to follow that blueprint when he becomes leader of a merged PSA and Fiat Chrysler Automobiles. The low-performing Chrysler brand might get the axe as could slow-selling cars, SUVs or trucks that lack potential. Already the companies are talking about consolidating vehicle platforms — the underpinnings and powertrains — to save billions in engineering and manufacturing costs. That could mean job losses in Italy, Germany and Michigan as PSA Peugeot technology is integrated into North American and Italian vehicles. “You canÂ’t be cost efficient if you keep the entire scale of both companies,” said Karl Brauer, executive analyst for the iSeeCars.com auto website. “WeÂ’ve seen this show before, and weÂ’re going to see it again where they economize these platforms across continents, across multiple markets.” Shareholders of both companies are to meet Monday to vote on the merger to form the worldÂ’s fourth-largest automaker, to be called Stellantis. The deal received EU regulatory approval just before Christmas. Tavares, who for years has wanted to sell PSA vehicles in the U.S., wonÂ’t take full control of the merged companies until the end of January at the earliest. He likely will target Europe for consolidation first, because thatÂ’s where Fiat vehicles overlap extensively with PSAÂ’s, said IHS Markit Principal Auto Analyst Stephanie Brinley. Europe has been a money-loser for FCA, and factories in Italy are operating way below capacity — a concern for unions, given FiatÂ’s role as the largest private sector employer in the country. “We are at a crossroads,Â’Â’ said Michele De Palma of the FIOM CGIL metalworkersÂ’ union. “Either there is a relaunch, or there is a slow agonizing closure of industry, in particular the auto industry, in Italy.” ItalyÂ’s hopes lie with the luxury Maserati and sporty Alfa Romeo brands, but De Palma said investments are needed to bring hybrid and electric technology up to speed. FiatÂ’s Italian capacity stands at 1.5 million vehicles, but only a few hundred thousand are being produced each year. Most factories were on rolling short-term layoffs due to lack of demand, even before the pandemic.

Stellantis wants to outfit cars with AI software to drive revenue

MILAN — Carmaker Stellantis announced a strategy Tuesday to embed AI-enabled software in 34 million vehicles across its 14 brands, hoping the tech upgrade will help it bring in 20 billion euros ($22.6 billion) in annual revenue by 2030. CEO Carlos Tavares heralded the move as part of a strategy that would transform the car company into a “sustainable mobility tech company,” with business growth coming from features and services tied to the internet. That includes using voice commands to activate navigation, make payments and order products online. The company is expanding existing partnerships with BMW on partially automated driving, iPhone manufacturer Foxconn on customized cockpits and Waymo to push their autonomous driving work into light commercial vehicle delivery fleets. StellantisÂ’ embrace of artificial intelligence and expansion of software-enabled vehicles is part of a broad transformation in the auto industry, with a race toward more fully electric and hybrid propulsion systems, more autonomous driving features and increased connectivity in automobiles. Ford and General Motors also are banking on dramatically increased revenue from similar online subscription services. But the automakers face immense competition for monthly consumer spending from movie and music streaming services, news outlets, Amazon Prime and others. Stellantis, which was formed from the combination of PSA Peugeot and FCA Fiat Chrysler, said the software would seamlessly integrate into customers' lives, with the capability of live updates providing upgraded services over time. New products will include the possibility to subscribe to automated driving features, purchase usage-based car insurance or even increase the power of the vehicle with a tune-up to add horsepower. As a baseline, Stellantis generates 400 million euros in revenue on software-generated services installed in 12 million vehicles. To meet the targets, Stellantis will expand its software engineering team of 1,000 to 4,500 in North America, Asia and Europe. More than 1,000 of the expanded team will be retrained in house. Stellantis also announced a new partnership with Foxconn to develop semiconductors to cover 80% of the companyÂ’s needs and simplify the supply chain. The first microchips from the partnership are targeted to be installed in vehicles in 2024.

Lancia steps off the chopping block, promises three new cars

Stellantis has canceled Lancia's death sentence and granted it a new lease on life. The storied Italian brand announced its own salvation and pledged to launch three new cars (its first since 2011) starting in 2024, including one that will resurrect a well-known nameplate. "Today is an important day. Lancia is ready for Europe, and we have taken the first step towards becoming a credible and respected brand in the premium segment," affirmed company CEO Luca Napolitano. He also presented a 10-year plan that he calls the brand's renaissance. As of writing, the only car in the Lancia portfolio is the Ypsilon (pictured). The model offensive will begin in 2024, when the little four-door hatchback (which remains stunningly popular in Italy in spite of its age) will finally get a replacement. Details about the next-generation model remain few and far between, but it will stretch about 157 inches long and it will be offered exclusively with an electric powertrain. The next Ypsilon will be joined by what Lancia calls a flagship in 2026. The model will measure 181 inches long, meaning it will be a couple of inches shorter than the current-generation BMW X3. It's too early to tell whether it will take the form of a sedan or an SUV. Lancia has never sold an SUV, and it has historically built big luxury sedans, but even European buyers prefer high-riding models in this segment. Finally, the third part of Lancia's renaissance is a long-rumored new Delta. It will stretch around 173 inches from bumper to bumper (so it will be about four inches longer than a Volkswagen Golf) and it will be characterized by what the firm describes as "a sculpted, muscular design with geometric lines that will appeal to enthusiasts." It sounds like Lancia designers will try to echo the original Delta, which was released in 1979 as a family-friendly hatchback and later morphed into one of the most successful World Rally Championship cars of all time. Some of Lancia's future models will be electrified, and the brand will go electric-only by 2028. And, we're told that every future member of the range will feature an interior with a typically Italian design, though photos of the upcoming Lancia models haven't been released yet. While it sounds like Lancia is saved, at least for the time being, several points remain in the air.