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Stellantis is official: FCA and PSA merger finally sealed

MILAN — Fiat Chrysler and PSA sealed their long-awaited merger on Saturday to create Stellantis, the world's fourth-largest auto group with deep enough pockets to fund the shift to electric driving and take on bigger rivals Toyota and Volkswagen. It took over a year for the Italian-American and French automakers to finalize the $52 billion deal, during which the global economy was upended by the COVID-19 pandemic. They first announced plans to merge in October 2019, to create a group with annual sales of around 8.1 million vehicles. "The merger between Peugeot S.A. and Fiat Chrysler Automobiles N.V. that will lead the path to the creation of Stellantis N.V. became effective today," the two automakers said in a statement. Shares in Stellantis, which will be headed by current PSA Chief Executive Carlos Tavares, will start trading in Milan and Paris on Monday, and in New York on Tuesday. Now analysts and investors are turning their focus to how Tavares plans to address the huge challenges facing the group – from excess production capacity to a woeful performance in China. Tavares will hold his first press conference as Stellantis CEO on Tuesday, after ringing NYSE's bell with Chairman John Elkann. FCA and PSA have said Stellantis can cut annual costs by over 5 billion euros ($6.1 billion) without plant closures, and investors will be keen for more details on how it will do this. Marco Santino, a partner at consultants Oliver Wyman, said he expected Tavares to disclose the outlines of his action plan soon, but without divulging too many details at first. "He has proven to be the kind of person who prefers action to words, so I don't think he will make loud statements or try to over-sell targets," he said. Like all global automakers, Stellantis needs to invest billions in the years ahead to transform its vehicle range for the electric era. But other pressing tasks loom, including reviving the group's lagging fortunes in China, rationalizing its huge global empire and addressing massive overcapacity. "It will be a step by step process, also to allow the market to better appreciate every single move. I don't think we will have all the details before one year," Santino said.

Chrysler's Jefferson North plant builds 5-millionth SUV [w/video]

Chrysler's Jefferson North Assembly Plant opened in 1992 for production of the first Jeep Grand Cherokee, but in the subsequent years, the Detroit plant has gone on to produce some of the company's biggest SUVs including the Jeep Commander and Dodge Durango. Earlier this week, the plant produced its five-millionth SUV, which, fittingly, was a Grand Cherokee.
Celebrating the plant's five-millionth unit, the silver 2014 Grand Cherokee was promptly donated to the USO. In addition to this milestone SUV, Chrysler also had a near-perfect 1993-95 ZJ Grand Cherokee on hand for the photo op. Scroll down for the Chrysler press release as well as a video showing some of the speeches from the celebration.

180,000 new vehicles are sitting, derailed by lack of transport trains

If you're planning on buying a new car in the next month or so, you might want to pick from what's on the lot, because there could be a long wait for new vehicles from the factory. Locomotives continue to be in short supply in North America, and that's causing major delays for automakers trying to move assembled cars.
According to The Detroit News, there are about 180,000 new vehicles waiting to be transported by rail in North America at the moment. In a normal year, it would be about 69,000. The complications have been industry-wide. Toyota, General Motors, Honda and Ford all reported experiencing some delays, and Chrysler recently had hundreds of minivans sitting on the Detroit waterfront waiting to be shipped out.
The problem is twofold for automakers. First, the fracking boom in the Bakken oil field in the Plains and Canada is monopolizing many locomotives. Second, the long, harsh winter is still causing major delays in freight train travel. The bad weather forced trains to slow down and carry less weight, which caused a backup of goods to transport. The auto companies resorted to moving some vehicles by truck, which was a less efficient but necessary option.