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Stellantis reports $15B profit in first year of merger

FRANKFURT, Germany — Automaker Stellantis said Wednesday that it made 13.4 billion euros ($15.2 billion) in its first year after it was formed from the merger of Fiat Chrysler Automobiles and PSA Group. The earnings nearly tripled profits compared with its pre-merger existence as two separate companies, as the maker of Jeep, Opel and Peugeot vehicles exploited cost efficiencies from combining the businesses. The result compared to a combined 4.79 billion euros for the separate companies in 2020 before the merger, which took effect on Jan. 17, 2021. Revenue for the combined business rose 14%, to 152 billion euros. CEO Carlos Tavares said the results “prove that Stellantis is well positioned to deliver strong performance" and had overcome “intense headwinds” during the year. Automakers have struggled with shortages of key parts such as semiconductor electronic components and rising costs for raw materials as the global rebound from the worst of the coronavirus pandemic brings more demand. The company said the benefits of the merger were worth some 3.2 billion euros during the year. Mergers can lead to streamlined costs as companies combine functions and spread fixed costs over a larger revenue base. The company accelerated its rollout of battery-powered vehicles, with sales of low-emission vehicles reaching 388,000 — an increase of 160%. Stricter environmental regulations in Europe and China are pushing automakers to roll out more electric vehicles with longer range. Stellantis started production of a hydrogen fuel cell commercial van under its Opel brand in December. Stellantis' other brands include Chrysler, Citroen, DS, Fiat, Maserati, Ram and Vauxhall. Related video: Earnings/Financials Chrysler Dodge Ferrari Fiat Jeep RAM Citroen Opel Peugeot Vauxhall

Ferrari worth over $11 billion, says Marchionne ahead of IPO

We all know that cars from Ferrari sell for hundreds of thousands, if not millions of dollars. But how much is Ferrari worth as a company? At least ten billion, according to its chairman. Speaking at the launch of the revised Fiat 500 in Turin on Friday, Fiat Chrysler CEO and Ferrari chairman Sergio Marchionne said he expected the vaunted Maranello-based supercar manufacturer and racing team to be valued at over 10 billion euros, or about $11 billion at current exchange rates. As Bloomberg points out, that would make Ferrari alone account for some 60 percent of the value of its parent company Fiat Chrysler Automobiles, which is currently valued at over 16 billion euros. That may seem like an aggressive estimate, but we won't have to take Marchionne at his word for long. After having floated an Initial Public Offering on the New York Stock Exchange last year, Fiat Chrysler is preparing to do the same with its Ferrari unit as soon as October. FCA will not, of course, be selling off all of its shares. The projected scheme would have ten percent (worth about one billion by Marchionne's estimates) of Ferrari's shares floated on the NYSE. Another 10 percent is expected to remain in the hands of founder Enzo's son (and company vice chairman) Piero Ferrari's hands. The remaining 80 percent is slated to be distributed among Fiat Chrysler's existing stakeholders.

Toro Rosso switches back to Ferrari F1 power for 2016

Scuderia Toro Rosso will run once again under Ferrari power next season. The "other" Italian squad (and second Red Bull team) announced the switch back to Maranello power for 2016, ending its two-year sojourn with Renault, and returning to the engine supplier it used for seven years prior. And with it, the team has also confirmed its driver lineup for next season as well. The 2016 Formula One World Championship will see both Max Verstappen and Carlos Sainz return to drive the new Toro Rosso-Ferrari STR11, maintaining the same driver lineup as this past season but under new motivation. Both drivers debuted with the team last season in a complete shakeup of its roster after Jean-Eric Vergne was shown the door and Daniil Kvyat (like Daniel Ricciardo before him) was promoted to the Red Bull Racing team. In ten seasons on the grid, the team has only landed on the podium once, and that was with Sebastian Vettel's dramatic rain-soaked race victory at Monza in 2008. The fourth-place finishes that Verstappen impressively took in Hungary and Austin this year match the team's next-best results to date. Sainz managed to finish in the points in seven out of 19 grands prix this season, including a seventh-place finish in Austin. The team finished the season in seventh place – tying its second best results to date – ahead of Sauber and McLaren, but behind Lotus and Force India. The Austrian parent company bought the team formerly known as Minardi back in 2005, hitting the grid the next season under its current name and Cosworth power. The following season it switched to Ferrari engines before joining its big brother under Renault motivation for the past season. Because of the last-minute engine swap, the team will start the season using Ferrari's 2015 power units. Faenza's switch to Ferrari supply will leave Renault powering only two teams next season: the Lotus outfit that it is now bringing back in house, and Red Bull, which will run the French automaker's engines for at least one more season – albeit branded under the TAG Heuer name. Meanwhile the Prancing Horse marque will power a total of four teams next season, including its own, Toro Rosso, Sauber, and newcomer Haas. Mercedes will power three and Honda just the one. Scuderia Toro Rosso to feature a Ferrari power unit Scuderia Toro Rosso's 2016 challenger, the STR11, will feature a Ferrari power unit. It marks a return to the company that supplied engines to the team from 2007 to 2013.