2004 Jeep Liberty Limited on 2040-cars

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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.

Jeep Begins Fixing 1.56 Million Recalled Grand Cherokee, Liberty SUVs

Chrysler is just now beginning the big job of fixing 1.56 million older Jeep SUVs seven months after a recall was announced, according to The Detroit News. Jeep Grand Cherokees sold between 1992 and 1998 and Jeep Liberty models sold between 2002 and 2007 are being recalled because the gas tank can leak in the event of a rear-end collision, leading to a fire. The National Highway Traffic Safety Administration originally requested the recall of 2.7 million vehicles. Chrysler initially disputed NHTSA's findings and seemed willing to go through a court battle until an 11th-hour deal reduced the number of vehicles involved in the recall. The remaining vehicle owners left out of the recall will receive a "customer service action" notification and may not get fixed. Chrysler says the vehicles are safe and need no repairs. Fixing the 1.56 million Jeeps will cost Chrysler $151 million. NHTSA cited 51 deaths causes by such tank fires. Chrysler plans to install protective trailer hitches to protect the gas tanks, but even the automaker admits the hitches will only provide incremental protection in a low-to-moderate speed rear-end crash. Related Gallery 2014 Jeep Cherokee Test Drive View 9 Photos Recalls Chrysler Jeep jeep liberty

2014 Jeep Cherokee facing production delay

Jeep's bold-faced new direction spearheaded by the 2014 Cherokee is facing some teething issues. According to a report by the Detroit Free Press, production start-up of the controversial new utility vehicle at its Toledo North facility is running about a month behind schedule "due to a wide range of issues." That's according to Mark Chernoby, senior vice president of engineering at Chrysler.
Chernoby maintains that the issues being encountered aren't unusual for the launch of a new vehicle - particularly one with a new powertrain - and he downplayed the delay, telling Jeep dealers that they "will have ample inventory of the midsize SUV by fall." Among the kinks being worked out? Calibrating the Cherokee's cutting-edge ZF nine-speed automatic transmission and refining assembly line tasks to make the process more efficient.
Chrysler expects to start building retail-ready versions of the Cherokee around mid-June, with official sales slated to start in September.