1999 Chrysler 300 Series 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.

EU starts legal action against Italy over Fiat Chrysler emissions

BRUSSELS/ROME - The European Commission launched legal action against Italy on Wednesday for failing to respond to allegations of emission-test cheating by Fiat Chrysler, in a procedure that could lead to the country being taken to court. The Commission said Italy had failed to convince it that devices used to modulate emissions on Fiat Chrysler vehicles outside of narrow testing conditions were justified. "The Commission is now formally asking Italy to respond to its concerns that the manufacturer has not sufficiently justified the technical necessity – and thus the legality – of the defeat device used," the Commission said in a statement. Italy has two months to respond to the Commission's request and may be eventually taken to the European Court of Justice if the answer is found to be unconvincing. Italy had asked the European Union to postpone its plan to launch legal action against Rome over emissions at Fiat Chrysler, Transport Minister Graziano Delrio said. "Considering that after the end of the mediation process, we did not receive any request for further information ... we ask that you delay starting the infringement procedure while we await a letter asking for clarification on issues raised by your relevant offices," Delrio told EU Industry Commissioner Elzbieta Bienkowska, according to the ministry's statement. The European Commission has been mediating a dispute between Rome and Berlin after Germany accused Fiat Chrysler of using an illegal device in its Fiat 500X, Fiat Doblo and Jeep Renegade models. That mediation ended without fanfare in March. EU officials have become increasingly frustrated with what they see as governments colluding with the powerful car industry and the legal move is the biggest stick the European Commission has available to force nations to clamp down on diesel cars that spew out polluting nitrogen oxide (NOx). Delrio, however, said the material Italy had sent to the Commission during the mediation process showed that the vehicles' approval process was correctly performed. Under the current system, which the Commission is trying to overhaul, national regulators approve new cars and alone have the power to police manufacturers. But once a vehicle is approved in one country, it can be sold throughout the bloc. Last December, the Commission launched cases against five nations, including Germany, Britain and Spain, for failing to police the car industry adequately.

Junkyard Gem of the Week: 1979 Plymouth Horizon (with the Woodgrain Package!)

While Ford and GM proved to have sufficiently deep pockets to design their own US-market subcompacts for the fuel-starved 1970s, Chrysler had to look to its overseas outposts to create such a car. Turning to Simca, which had become part of Chrysler Europe after Chrysler's absorption of the Rootes Group, a promising hatchback concept was developed into both a European-market version and a significantly different American-market version. Today's Junkyard Gem is an example of the latter type, found in a Denver-area self-service boneyard last summer. The first of these cars came off the Belvidere Assembly line in Illinois as 1978 models (sadly, Stellantis just shuttered Belvidere in February). The Dodge-badged version was the Omni, while the Plymouth version was the Horizon; the generic term for this car is thus Omnirizon. The Omnirizon was a great success for Chrysler, and many other vehicles were based on its platform. To name a few members of the extended Omnirizon family: the 1982-1987 Dodge Charger, the Dodge Rampage/Plymouth Scamp minitrucks, and even the Plymouth Turismo of Cocaine Factory fame. Astoundingly, production continued all the way through 1990, which meant that these thoroughly 1970s cars stuck around long enough to get airbags as standard equipment. Just as was the case with the Mitsubishi-built Dodge and Plymouth Colts, there never were any significant differences—pricing or otherwise—between the Dodge Omni and Plymouth Horizon. The Omnirizon got a fascinating assortment of engines during its first half-decade or so. For 1978 through 1980, it received the same 1.7-liter Volkswagen straight-four that went into US-market Rabbits, Sciroccos, Jettas and Audi 4000s. This one was rated at 77 horsepower and 90 pound-feet. Chrysler began bolting in its homegrown 2.2-liter four-banger starting with the 1981 Omnirizons, with the hilariously quick Omni GLH and GLHS getting turbocharged versions a few years later. From the 1983 through 1986 model years, penny-pinching Americans could buy their base-model Omnirizons with 1.6-liter Peugeot-built Simca engines delivering 62 French horses to the front wheels. This Horizon is absolutely loaded by the standards of late-1970s economy cars. The MSRP was just $4,278 (about $18,843 in 2023 dollars), but this automatic transmission would have added another $319 to the cost ($1,405 today). The base transmission for 1979 was a four-on-the-floor manual.