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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

Ram recalling 65k trucks for rear-axle heat treating

A problem with the rear axle has promoted Fiat Chrysler Automobiles to recall a selection of Ram trucks. The campaign affects 2015-16 Ram 1500 series trucks – specifically those manufactured between June 17 and September 28, 2015. All told, that amounts to over 65,760 units across the United States. The issue stems, according to the statements below, from the rear axle shaft. Some of those trucks may have not had those axle shafts properly heat-treated, which could cause them to fracture and separate from the wheel. And that, it should go without saying, could lead to a crash. FCA states that most of the vehicles in question are in dealer hands, but while the manufacturer says it is aware of one accident to have resulted from the issue, no injuries have been reported. The owners of the affected vehicles will be notified to bring their trucks in to their local dealership to have them inspected. If necessary, the dealership with replace the rear axle assembly. This recall follows three prior (but unrelated) ones, also issued for Ram pickups, that between them affected well over a million units. Related Video: RECALL Subject : Incorrectly Heat Treated Rear Axle Shaft Report Receipt Date: OCT 15, 2015 NHTSA Campaign Number: 15V661000 Component(s): POWER TRAIN Potential Number of Units Affected: 65,760 Manufacturer: Chrysler (FCA US LLC) SUMMARY: Chrysler (FCA US LLC) is recalling certain model year 2015-2016 Ram 1500 trucks manufactured June 17, 2015, to September 28, 2015. The affected vehicles may have been built with rear axles that were incorrectly heat treated. CONSEQUENCE: If the rear axle shaft was not properly heated treated, it may fracture and a wheel separation could occur, increasing the risk of a crash. REMEDY: Chrysler will notify owners, and dealers will inspect the vehicles and replace the axle assemblies, as necessary, free of charge. The manufacturer has not yet provided a notification schedule. Owners may contact Chrysler customer service at 1-800-853-1403. Chrysler's number for this recall is R59. NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov. ### Statement: Heat-treating October 27, 2015 , Auburn Hills, Mich. - FCA US LLC is voluntarily recalling an estimated 65,760 U.S.-market trucks – most of which are in dealer hands – to inspect and replace, as required, their rear axle shafts or rear axles.

2013 Ram 1500 earns Truck of Texas honors

Auto writers around the country tend to specialize in different vehicles based on the trends of our respective home markets. The New England Motor Press Association, for example, presents an award every year for the best winter vehicle. With that in mind, it is fitting that the Texas Auto Writers Association doles out an annual truck award. This year, the TAWA "Truck of Texas" is the 2013 Ram 1500.
In a announcement from TAWA, the new Ram took top honors based in no small part on, "a new 3.6-liter V6 that boasts 42 percent more power, improved fuel economy, infotainment upgrades and available eight-speed automatic transmission and air suspension." And according to Ram CEO Fred Diaz, "Automotive reporters have reacted extremely favorably to the new 2013 Ram 1500, and our research tells us that resonates with truck buyers." The Ram 1500 unseated the previous Truck of Texas, the 2012 Ford F-150.
The Texas Auto Writers Association Truck Rodeo was also an occasion for journalists to award an SUV of Texas, and thankfully, the distinction is made between SUV and CUV. The Jeep Grand Cherokee took top honors in the SUV department, with TAWA pointing to models like the off-road-ready Trailhawk and feature-laden Overland Summit. It is the third consecutive year that the Grand Cherokee has achieved this accolade. The award for top crossover went to the 2013 Buick Enclave, which is in its first year of a new design. To read more on the Truck of Texas award and all the finalists, check out the press release below.