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Stellantis ready to kill brands and fix U.S. problems, CEO Tavares says

  MILAN — Stellantis is taking steps to fix weak margins and high inventory at its U.S. operations and will not hesitate to axe underperforming brands in its sprawling portfolio, its chief executive Carlos Tavares said on Thursday. The warning for lossmaking brands is a turnaround for Tavares, who has maintained since Stellantis was created in 2021 from the merger of Italian-American automaker Fiat Chrysler and France's PSA that all of its 14 brands including Maserati, Fiat, Peugeot and Jeep have a future. "If they don't make money, we'll shut them down," Carlos Tavares told reporters after the world's No. 4 automaker delivered worse-than-expected first-half results, sending its shares down as much as 10%. "We cannot afford to have brands that do not make money." The automaker now also considers China's Leapmotor as its 15th brand, after it agreed to a broad cooperation with the group. Stellantis does not release figures for individual brands, except for Maserati which reported an 82 million euro adjusted operating loss in the first half. Some analysts say Maserati could possibly be a target for a sale by Stellantis, while other brands such as Lancia or DS might be at risk of being scrapped given their marginal contribution to the group's overall sales. Stellantis' Milan-listed shares were down as much as 12.5% on Thursday, hitting their lowest since August 2023. That brings the loss for the year so far to 22%, making them the worst performer among the major European automakers. Few automotive brands have been killed off since General Motors ditched the unprofitable Saturn and Pontiac during a U.S. government-led bankruptcy in the global financial crisis in 2008. Tavares is under pressure to revive flagging margins and sales and cut inventory in the United States as Stellantis bets on the launch of 20 new models this year which it hopes will boost profitability. Recent poor results from global carmakers have heightened worries about a weakening outlook for sales across major markets such as the U.S., whilst they also juggle an expensive transition to electric vehicles and growing competition from cheaper Chinese rivals. Japan's Nissan Motor saw first-quarter profit almost completely wiped out on Thursday and slashed its annual outlook, as deep discounting in the United States shredded its margins. Tavares said he would be working through the summer with his U.S. team on how to improve performance and cut inventory.

Fiat Chrysler recalls 4.8 million U.S. vehicles for cruise control defect

WASHINGTON - Fiat Chrysler said on Friday it is recalling 4.8 million U.S. vehicles over a defect that could prevent drivers from deactivating cruise control and warned owners not to use the function until they get software upgrades. The Italian-American automaker said no injuries or crashes are related to the large recall campaign but said it had one report of a driver of a 2017 Dodge Journey rental car unable to deactivate the cruise control. Fiat Chrysler, which in 2015 was hit with penalties from U.S. regulators totaling $175 million for safety lapses, did not say how much the recalls would cost. The recall addresses what Fiat Chrysler called an "extremely rare" series of events that could lead to drivers being unable to cancel cruise control. The National Highway Traffic Safety Administration (NHTSA) said on Friday it "strongly encourages vehicle owners to follow a warning" to stop using cruise control on the recalled vehicles until repaired. NHTSA said drivers could overpower the system by forcefully applying the brakes until the vehicle stopped. Fiat Chrysler also said the vehicle could be stopped by shifting into neutral and braking. Fiat Chrysler shares fell more than 2 percent in premarket trading in New York on the recall. Fiat Chrysler noted that at times cruise control systems automatically initiate acceleration to help vehicles maintain driver-selected speeds, including when going up an incline. If an acceleration occurs simultaneously with a short-circuit in a specific electrical network, a driver could be unable to deactivate the function. Fiat Chrysler said vehicles may be placed in park once stopped, at which point cruise-control is canceled. The recall involves a group of gasoline-powered vehicles with automatic transmissions from various model years built from 2014 through the 2019 model year. Most of the vehicles being recalled cover the 2014-2018 model years. Among the vehicles being recalled are the Chrysler 200, Chrysler 300, Chrysler Pacifica, Dodge Charger, Dodge Challenger, Dodge Journey, Dodge Durango, Jeep Cherokee, Jeep Grand Cherokee, Jeep Wrangler and Ram 1500, 2500 and 3500 pickup trucks and Ram 3500/4500/5500 cab chassis trucks. Fiat Chrysler made the announcement going into the busy Memorial Day weekend, which traditionally kicks off the summer driving season.

Jeep Wrangler Scrambler pickup truck spy shots reveal top and lighting details

Several spy shots have come out that give us further insight into the new Jeep Wrangler Scrambler pickup truck. Among them are some photos of a prototype being driven near FCA test facilities. They show that the Wrangler will have LED headlights available similar to those on the SUV model, as well as the new Renegade revealed for Europe. They also show the taillights of the pickup, though they appear to be units from a previous-generation JK Wrangler. They're probably placeholders for the new model's lights. View 22 Photos These photos also include images of the truck's interior. The dashboard is a mash-up of old pieces, including a JK Wrangler dash, and a Chrysler-badged steering wheel. But the important part of these photos is that they show parts of a normal Wrangler SUV roll cage, and latches holding down roof panels. These are evidence that the production model will have a removable roof. Further evidence comes from photos taken by someone from the Jeep aftermarket part company Artec Industries was checking out the factory in Toledo, Ohio. The images were brought to our attention by Jeep Scrambler Forum, and they show an unfinished Wrangler pickup body sitting in the doorway to the painting facility. The photo is below, and it confirms a number of details. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. This body has the same style of roll cage as those found on the SUV versions of the Wrangler. Specifically, it looks like a combination of the upright rear cage of the two-door, with the length of the Wrangler Unlimited's cage. In addition to confirming the removable top, the windshield also appears to fold down, too. Beyond the confirmation of the top and windshield features, the rest of the cab looks almost identical to any other 2019 Wrangler Unlimited. The fenders and hood are the same, down to the fender vents, as are the doors. The cab shows that there was clearly room for full-size doors, which would have been welcome from an access perspective, but that would naturally cost more than already developed parts, It also means that any aftermarket doors or door accessories created for the Unlimited will work with the Scrambler. We can also see that there's a small diagonal indent in the cab where part of the rear fender will fit. It also matches up with the line of the rear door.