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Stellantis expects strike to cost it $795 million in third-quarter profits

MILAN — Automaker Stellantis said Tuesday that the autoworkers strike in North America is expected to cost the company around 750 million euros ($795 million) in profits — less than its North American competitors. The Europe-based maker of Jeep, Fiat and Peugeot reported a 7% boost in net revenues to 45.1 billion euros, with production halts caused by the strikes costing the company 3 billion euros in sales through October. The net revenue boost was due to higher volumes in all markets except Asia. Chief Financial Officer Natalie Knight told journalists that StellantisÂ’ strike impact was lower than the other Big Three automakers due to its global profile as well as some high-profile cost-cutting measures, calculating the hit at around 750 million euros ($795 million.) GM, the last carmaker to reach a deal to end the strike, reported an $800 million strike hit. Ford has put its impact at $1.3 billion. “We continue to be in a very strong position globally and in the U.S. This is an important market for us, and weÂ’re highly profitable and we are very committed to our future," Knight said. “But mitigation is core to how we act, and how we proceed.” Stellantis has canceled appearances at the CES technology show in Las Vegas next year as well as the LA Auto Show, due to the strike impact. Stellantis on Saturday reached a tentative agreement with the United Auto Workers Union to end a six-week strike by more than 14,000 workers at its assembly plants in Michigan and Ohio, and at parts warehouses across the nation. Stellantis does not report full earnings for the third quarter, instead providing shipments and revenues. It said that global sales of electric vehicles rose by 37% over a year earlier, powered by the Jeep Avenger and commercial vehicle sales. North America continued to be the revenue leader, contributing 21.5 billion euros, an increase of 2% over last year, and representing nearly half of global revenues. Europe, the next biggest performing region, saw revenues grow 5% to 14 billion euros, as sales rose 11%. Related video: Earnings/Financials UAW/Unions Alfa Romeo Chrysler Dodge Fiat Jeep Maserati RAM

Sergio Marchionne wants Alfa Romeo back in F1

It's been decades since Alfa Romeo has competed in Formula One. But if Sergio Marchionne gets his way, it could make a comeback soon. Now we know what you might be thinking: Alfa Romeo and Ferrari are both part of the same Fiat Chrysler Automobiles group, so why would Marchionne want two brands competing against each other in such a costly racing series? Because technically speaking, Ferrari is no longer part of FCA, that's why. They share mostly the same owners and are run by the same person (Marchionne), but the Prancing Horse marque recently split off from its former parent company and floated its own shares on the stock market. That makes it a separate entity, and also means that FCA no longer has a direct link to F1. But its chief executive clearly thinks the investment is worthwhile. Marchionne has been known to state grandiose plans, but he's also been known to carry through on many of them. So the next question is, if the plan goes through, just how Alfa Romeo might participate in F1? Some automakers (like Mercedes) field their own teams, others (like Honda) compete as engine suppliers, and still others (like Infiniti) as branding partners. Alfa could go either route, but Marchionne told Italy's La Gazzetta dello Sport that "Alfa Romeo is able to make itself a chassis, and it is able to make engines." Of course, that doesn't mean that it necessarily will. It could outsource a chassis from a constructor like Dallara, which is located near the same Varano circuit that Alfa uses regularly. It could also source an engine from its former sister company: Marchionne floated the possibility of starting a separate engine program in Maranello for Red Bull when it was hunting for a new engine partner, and could ostensibly do the same for Alfa Romeo. "In order to re-establish itself as a sport brand, Alfa Romeo can and must consider the possibility of return to race in Formula 1," said Marchionne. "How? Probably in a collaboration with Ferrari." Alfa Romeo first competed in F1 in the early 1950s, winning the world championship two years running in 1950 with Giuseppe Farina (scion of Pininfarina) and 1951 with Juan Manuel Fangio. It then dropped out, only to resurface as a full constructor team between 1979 and 1985, with limited results. It also supplied engines to an array of teams in the 1960s, '70s, and '80s.

Marchionne offers belated apology for 'wop engine' comment

Automotive News reports Fiat-Chrysler CEO Sergio Marchionne has issued a written apology for his comments regarding his decision to stick with an Italian engine for the upcoming Alfa Romeo 4C. As you may recall, back in January, Marchionne was quoted as saying, "I cannot come up with a schlock product, I just won't. I won't put an American engine into that car. With all due respect to my American friends, it has to be a wop engine." The CEO penned an apology to the Italian American ONE VOICE Coalition for using the racial epithet, saying that he made the comment in jest. Marchionne also said he realizes his remarks were unacceptable.
ONE VOICE, an organization aimed at fighting discrimination and stereotyping of Italian Americans, thanked Marchionne, Chrysler and Fiat for the apology. Marchionne is an Italian-born Canadian citizen, and he's gotten in trouble for other comments in the past. In 2011, he called high interest rates Chrysler was paying to the Canadian government "shyster rates." He apologized a day later.