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Stellantis reports surprising 2020 results, is 'off to a flying start'

MILAN — Low global car inventories and cost cuts should boost Stellantis's profit margins this year, though a shortage of semiconductors and investments in electric vehicles could weigh on results, the newly-formed automaker said on Wednesday. The forecast came as Stellantis, created by the January merger of Peugeot-maker PSA and Fiat Chrysler (FCA), reported better-than-expected results for 2020 that sent its shares up around 3% in morning trading. "Stellantis gets off to a flying start and is fully focused on achieving the full promised synergies (from the merger)," Chief Executive Carlos Tavares said in a statement. Stellantis is the world's fourth largest carmaker, with 14 brands including Fiat, Peugeot, Opel, Jeep, Ram and Maserati. It said 2021 results should be helped by three new high-margin Jeep vehicles in North America and a strong pricing environment there. The U.S. market has driven profits for years at FCA and starts off as the strongest part of Stellantis. The group's guidance assumes no more significant lockdowns caused by the global COVID-19 pandemic, which shuttered auto plants around the world last spring. Stellantis should also get a lift as its starts to implement a plan aimed at delivering over 5 billion euros a year in savings, without closing any plants. Tavares has also pledged not to cut jobs. But a pandemic-related global shortage of semiconductors, used for everything from maximizing engine fuel economy to driver-assistance features, could hurt business. Auto industry executives have said the shortage should ease by the second half of 2021. Stellantis said its "electrification offensive" could also weigh on results this year. Automakers are racing to develop electric vehicles to meet tighter CO2 emissions targets in Europe and this week Volvo joined a growing number of carmakers aiming for a fully-electric line-up by 2030. Stellantis plans to have fully-electric or hybrid versions of all of its vehicles available in Europe by 2025, broadly in line with plans at top rivals such as Volkswagen and Renault-Nissan, although Stellantis has further to go to meet that goal. The carmaker is targeting an adjusted operating profit margin of 5.5%-7.5% this year. That compares with a 5.3% aggregated margin last year: 4.3% at FCA and 7.1% at PSA excluding a controlling stake in parts maker Faurecia, which is set to be spun-off from Stellantis shortly.

Stellantis will give its brands 10 years to prove they deserve to live

Formed by the merger of PSA Peugeot-Citroen and Fiat-Chrysler Automobiles, Stellantis has 14 brands under its roof, a number that makes it one of the largest groups in the industry. Rumors claimed not every brand would survive, with Chrysler often earmarked to get axed, but the firm said it will give them all a chance to shine. "We're giving each (brand) a chance, giving each a time window of 10 years and giving funding for 10 years to do a core model strategy. The CEOs need to be clear in brand promise, customers, targets, and brand communications," announced Stellantis boss Carlos Tavares during the Financial Times' Future of the Car event. His comments confirm Chrysler fans and dealers don't need to worry about the future — at least not yet. And, against all odds, Lancia enthusiasts can breathe a sigh of relief, too. Former FCA head Sergio Marchionne warned of the brand's demise on several occasions. Alfa Romeo is safe for now, too, as is Vauxhall, which are basically just Opels sold in the United Kingdom with a different badge. The engagement made by Tavares also means Stellantis won't divest any of its brands to raise capital until at least 2031. It's now up to each executive team to make a case for the brand they run, an unusual survival-of-the-fittest strategy in an era when cutting costs is more common than spending cash. Diving into the vast Stellantis parts bin should help even the most troubled brands turn their fortunes around on a relatively tight budget. It seems likely that survive Chrysler will need to look beyond the 300 and the Pacifica/Voyager, the only models in its range, and completely reinvent its image, which is currently nebulous at best. Lancia, once the champion of luxury, performance, and innovation, faces the same challenge. It's not starting quite from scratch, it's relatively popular in its home country of Italy, but it will need to think globally and expand outside of the city car segment to survive. Featured Gallery 2020 Chrysler 300 View 24 Photos Chrysler Dodge Fiat Jeep RAM Citroen Lancia Opel Peugeot Vauxhall

NHTSA investigating 630k Jeep Wranglers for possible airbag fault

The National Highway Traffic Safety Administration is opening a preliminary evaluation into a possible wiring problem on some 2007-2012 Jeep Wrangler models that could affect airbag deployment. The government agency has 221 complaints alleging that the airbag warning light is illuminating, and that could indicate that the safety devices might not deploy in a crash. If a recall is necessary, an estimated 630,000 vehicles could be affected. According to the documents from NHTSA (as a PDF here), a "faulty clockspring assembly in the driver side airbag electrical circuit" could be the culprit. Also, some of the affected Wranglers are showing a fault code that indicates the safety device wouldn't deploy in an accident. However at this time, there are no reports of injuries related to this potential problem. NHTSA's preliminary evaluations are simply meant to investigate and don't necessarily lead to a recall. This isn't the first time for a potential problem like this on the Wrangler, though. A clockspring issue already led to a safety campaign for 2008-2012 right-hand drive Wranglers and an extended warranty for 2007 left-hand drive examples. Related Video: INVESTIGATION Subject : Air Bag Clockspring Wiring Failure Date Investigation Opened: JUN 19, 2015 Date Investigation Closed: Open NHTSA Action Number: PE15025 Component(s): AIR BAGS All Products Associated with this Investigation Vehicle Make Model Model Year(s) JEEP WRANGLER 2007-2012 JEEP WRANGLER 2-DR 4X4 2007-2009 JEEP WRANGLER 4-DR 4X2 2007-2009 JEEP WRANGLER 4-DR 4X4 2007-2009 JEEP WRANGLER SAHARA 2007 Details Manufacturer: Chrysler (FCA US LLC) SUMMARY: The subject vehicles display an airbag warning light that may indicate a failure of the clockspring wiring in the driver side air bag circuit. Several complaints cite the following diagnostic trouble code (DTC): Code B1B02 Open Squib to driver's air bag. This DTC would indicate a no-fire condition (disablement) for the driver air bag. ODI investigated the RHD (right hand drive) Wrangler for a clockspring issue under PE11-019 which led to NHTSA Recall 11V258 on model year (MY) 2008-2012 RHD Wranglers as well as an extended warranty campaign on MY 2007 LHD Wrangler vehicles. This investigation covers the MY07-12 LHD (left hand drive) Wranglers.