2005 Chrysler Crossfire Limited on 2040-cars

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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.

Fiat Chrysler's Q3 profit boosted by strong North American earnings

MILAN, Italy — Fiat Chrysler Automobiles (FCA) reported a 17 percent jump in third-quarter adjusted operating profit on Tuesday, helped by a strong performance in its key North American market and improving operations in Europe and Latin America. The world's seventh-largest carmaker still makes the lion's share of its profits in North America, so improving, or at least maintaining, its margins there is a key focus. The carmaker reported an 8 percent adjusted operating profit margin in the region, up from 7.6 percent a year ago, despite a drop in sales and shipments. "FCA's profitability in North America remained strong in the quarter despite a weakening market there," a Milan-based analyst said. FCA's profitability compares with an 8.3 percent North America margin reached in the quarter by bigger U.S. rival GM , showing CEO Sergio Marchionne making progress towards his goal of closing the margin gap with GM and the company's other U.S. rival, Ford, by 2018. The company's confirmation of its full-year outlook also pushed shares higher, a trader added. The stock was up 2.8 percent by 1129 GMT, outperforming a 1 percent rise in the European auto index. FCA has been retooling some U.S. factories to boost output of sport-utility vehicles (SUVs) and trucks while ending production of some unprofitable sedans to strengthen profitability as the U.S. car market comes off its peak. The company said a drop in North America shipments due to lower fleet sales and discontinued models was partially offset by higher deliveries of Ram trucks and two models from the Alfa Romeo stable: the Stelvio sport utility vehicle and Giulia sedan. Profitability also improved in Europe, helped by sales of the Stelvio and the new Jeep Compass, and Latin America, while margins at Maserati remained strong at 13.8 percent due to strong demand for its first SUV, the Levante. In a later conference call, investors are looking for hints on the new strategy to 2022 which the company promised to unveil early next year. Chief Executive Sergio Marchionne said earlier this year that FCA would streamline its portfolio and that components businesses, including Magneti Marelli, would be separated from the group, possibly via a spin-off. While FCA confirmed its targets this year, doubts remain about its exposure to a weakening U.S. market, recall costs and potential fines over emissions after it was targeted by European and U.S.

Dodge Dart pushed toward the grave with simplified lineup

FCA announced a while back that the Dodge Dart and its Chrysler 200 half-sibling are on the way out due to lack of interest. The 2016 model year will be the Dart's last, and Dodge has just reconfigured the lineup mid-year to lower (relative) pricing and streamline ordering. Streamlined is a nice way of saying there will be fewer choices, with three models (down from five) and limited customization beyond choosing the paint color. The odd thing is that the Dart continues to offer three different engines. And while the prices of the individual models have decreased, the former SE base trim is now gone. That means an early-2016 Dart was available for as little as $17,990, while the late-2016 Dart starts at $18,990. For that sum you get the new base model, the SXT Sport, which replaces the SXT and comes with the 2.0-liter Tigershark four-cylinder (160 horsepower, 148 lb-ft of torque) and a six-speed manual; a six-speed automatic is an available option. Standard equipment includes normal entry-level car stuff, black cloth upholstery, 16-inch wheels, and grille shutters that help improve fuel economy. The SXT Sport can be dressed up with one of three different appearance packages; Chrome adds bright accents to parts including the grille and door handles, Rallye has a black grille and a touring suspension, and the Blacktop package makes pretty much everything on the exterior black and includes a sport-tuned suspension. All three packages come with bigger wheels, too. From there it's on to the new Dart Turbo, for $20,490. It comes with the 1.4-liter turbo four (160 hp, 184 lb-ft of torque) and comes exclusively with a six-speed manual transmission. This is supposed to be the model for enthusiasts, which is how Dodge is selling the switch to manual-only. Ditching the disliked dual-clutch automatic that was previously offered with this engine doesn't hurt. This engine was also used in the former Aero model, as it's the most fuel-efficient in the lineup. The Turbo gets the Rallye appearance stuff and a different hood. At the top is the Dart GT Sport, starting at $21,900. It has the 184-hp, 2.4-liter Tigershark four-cylinder and a choice of six-speed manual or automatic transmission. This is the one with features, including a power driver's seat, the 8.4-inch Uconnect infotainment unit, digital reconfigurable gauges, dual-zone auto climate, keyless start, and a rearview camera. The latter-part-of-2016 Dart will be available in eight colors.