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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.

2021 Chrysler Pacifica First Drive | More features, better van

Ever since its introduction as a 2017 model, the Chrysler Pacifica has been one of our favorite minivans. It offers stylish looks inside and out, traditional minivan practicality, excellent infotainment and some of the most compelling powertrain options. For its 2021 model year refresh, the Pacifica smartly expands on all the things we already enjoyed and avoids ruining any inherent goodness, as evidenced by our test van, a new-for-'21 Pinnacle trim level. The Pacifica’s changes start on the outside with redesigned front and rear fascias. These changes are probably the least successful, by which we mean, theyÂ’re not bad, just different. The modest grille and simple bumper design have given way to a deeper main grille and large lower openings, plus a pronounced air dam. It gives the van a wider, lower and meaner look. We donÂ’t dislike it, but it seems different rather than better. We do like the revamped tail with its full-width taillights. And if for some reason you prefer the previous design, the entry-level Chrysler Voyager is just a decontented Pacifica with the old styling. Under the skin, the biggest change is the addition of all-wheel drive, something not shared with the Voyager. The feature has been absent from the Chrysler van lineup for several years, since Chrysler couldnÂ’t fit a driveshaft between the underfloor wells for the Stow ‘n Go second-row seats. That issue has been solved, and now you can have AWD without sacrificing any interior seating flexibility. The AWD system can send all power to the rear wheels as needed, and it also can disconnect the rear driveshaft to increase fuel economy. Our test Pacifica was equipped with all-wheel drive, and it was certainly effective in some of metro DetroitÂ’s snowy conditions, offering a bit more launch traction and some assistance powering out of slow corners. But in the dry, it doesnÂ’t change the driving experience at all. Also, despite the ability to disengage the rear driveshaft, fuel economy still takes a hit compared to the front-drive model, dropping from 19 mpg in town and 28 on the highway, to 17 in the city and 25 on the highway. That's a difference of 2 mpg combined, which works out to be $150 per year in annual fuel costs, according to the EPA.

Fiat Chrysler teams with startup Archer to build an electric air taxi

Archer Aviation is one of many startups trying to build an electric vertical takeoff and landing (eVTOL) aircraft, among Volocopter, Hyundai, Lilium and many others. The startup just boosted its standing, however, as it has announced a partnership with Fiat Chrysler Automobiles (FCA). Archer plans to build a composite eVTOL aircraft capable of traveling 150 mph for distances up to 60 miles. FCA will provide access to its “low-cost supply chain, advanced composite material capabilities and engineering and design experience,” according to Archer. The aim is to unveil the electric aircraft design in 2021 and start manufacturing in 2023. Archer has only released a teaser image of the aircraft, showing a sleek six-prop, V-tail design. Presumably, the wings or individual engines rotate to allow for both VTOL and decent forward travel speeds. The design differs from others weÂ’ve seen like LiliumÂ’s aircraft, which has the propulsive fans hidden in the wings. ItÂ’s also nothing like the drone-type designs from Volocopter, Joby and Hyundai. It does look a bit like Larry PageÂ’s “Cora” air taxi, however. Archer said itÂ’s been “hyper-focused” on the customer part of the design, aiming to offer “increased safety while producing minimal noise” compared to helicopters. “Now, we are working with a seasoned, industry-leading automotive partner... to produce thousands of aircraft reliably and affordably every single year,” said co-founder and co-CEO Brett Adcock. All passenger aircraft must pass a rigorous FAA certification process thatÂ’s daunting even for experienced companies like Boeing, and itÂ’s still not clear how “thousands” of air taxis would fit into the current air traffic control system. On top of that, so far weÂ’ve seen zero eVTOL aircraft that look ready for human transport or mass production. Written by Steve Dent for Engadget. Green Plants/Manufacturing Chrysler Fiat air taxi

FCA, Ford idle plants due to semiconductor shortage

DETROIT (Reuters) - Ford and FCA will become the latest automakers to idle production facilities due to a semiconductor shortage. Ford's Louisville Assembly Plant in Kentucky will idle for a week, borrowing a down period from later in the year to compensate. Per Automotive News, FCA is idling its Brampton facility in Ontario, Canada, and one other site which has not yet been identified.  Louisville Assembly is the production site for the Ford Escape and Lincoln Corsair SUVs; Brampton Assembly produces the Chrysler 300, Dodge Charger and Dodge Challenger for FCA.  A Ford spokeswoman, who declined to identify the semiconductor supplier, confirmed the temporary shutdown to Reuters. In this, FCA and Ford join Nissan and potentially Honda in idling production in the wake of the shortage, which also hit Volkswagen late last year. The shortages are being blamed on consumer demand for silicon after production slowdowns resulting from the coronavirus pandemic. Volkswagen said it had to adjust production schedules in China, Europe and North America to compensate.  Nissan said it planned to reduce production of the Note, a hybrid electric car, at its Oppama Plant in Kanagawa prefecture, Japan, but did not give details of the scale of the output cut. The Nikkei newspaper reported that Nissan would slash its Note production at Oppama to about 5,000 units in January, from an initially planned 15,000 units. "A global shortage of semiconductors has affected parts procurement in the auto sector. As a result of this shortage, the Oppama Plant in Japan will adjust production in January, reducing production of the Nissan NOTE," Nissan said in a statement. (This article contains reporting from Reuters.)     Auto News Plants/Manufacturing UAW/Unions Chrysler Dodge Ford

FCA joining virtual CES with in-depth tours and Jeep Wrangler 4xe in AR

CES is sort of, technically happening, but it won’t be the CES weÂ’ve all become accustomed to over the years. Automakers will be doing their best to participate virtually, assuming they decide to join in the festivities at all. FCA is one that will have a little nugget of tech to share with us. A few main experiences will be made available to anybody with a computer. FCAÂ’s main draw is meant to be “highly detailed interactive product tours” where you can get to know a number of vehicles in a virtual world and hear from a “virtual brand ambassador” throughout the tour. You wonÂ’t be able to sit in and crawl through the cars like a normal auto show for the public, but FCA is promising a rather immersive experience online. The guided tour through the cars and technologies will be available in 12 FCA vehicles, two of those being the new Jeep Grand Wagoneer Concept and Alfa Romeo Stelvio Quadrifoglio. FCA plans to offer in-depth talks about how it tests vehicles, too. There are demonstrations planned for wind tunnels, the four-post shaker, an advanced drive simulator and general performance testing. Additionally, FCA plans on providing more insight into Uconnect 5 and vehicle electrification systems. WeÂ’re guessing the latter will offer up details on the Wrangler 4xe. The plug-in hybrid Wrangler will also be the star of FCAÂ’s AR play at CES. Everybody will be able to scan a QR code on FCAÂ’s site, then have access to a Wrangler 4xe on their phone. YouÂ’ll be able to “put it” in your driveway virtually, change the colors and get up close and personal with the interior.  All of this will launch on fcaces2021.com at 9 a.m. ET on January 11 (official first day of the virtual CES show), so surf on over there next week if you want to check it out. Related video:

Stellantis mega-merger gets approval from FCA, PSA shareholders

MILAN — Shareholders of Fiat Chrysler and PSA Peugeot decisively voted Monday to merge the U.S.-Italian and French carmakers to create worldÂ’s 4th-largest auto company. Addressing separate meetings, both PSA Peugeot CEO Carlos Tavares and Fiat Chrysler Chairman John Elkann spoke of the “historic” importance of the vote, which combines legacy car companies that helped write the industrial histories of the United States, France and Italy. Before the merger is finalized, shares in the new company, to be called Stellantis, must the launched. It will be traded in Milan, New York and Paris. The marriage of PSA Peugeot and Fiat Chrysler Automobiles is built on the promise of cost-savings in the capital-hungry industry, but what remains to be seen is if it will be able to preserve jobs and heritage brands in a global market still suffering from the pandemic. The deal will create the worldÂ’s fourth-largest carmaker, with the capacity to produce 8.7 million cars a year, behind Volkswagen, Toyota and Renault-Nissan, and create 5 billion euros in annual synergies.  “We are fully aware of the fact that together we will be stronger than individually,'' PSA CEO Carlos Tavares told a virtual gathering of eligible shareholders. “The two companies are in good health. These two companies have strong positions in their markets.” The new company will put together under one roof French mass-market carmakers Peugeot and Citroen, top-selling Jeep and Italian luxury and sports brands Maserati and Alfa Romeo - pooling companies that have helped define the industry in the United States, France and Italy. While the tie-up is billed as a merger of equals, the power advantage goes to PSA, with Tavares running Stellantis and holding the tie-breaking vote on the 11-seat board. Tavares is set to take full control of the company early this year, possibly by the end of January. Fiat Chrysler chairman John Elkann, heir to the Fiat-founding Agnelli family and Fiat ChryslerÂ’s biggest shareholder, will be the Stellantis chairman. Fiat Chrysler CEO Mike Manley will head North American operations, which is key to Tavares' long-time goal of getting a U.S. foothold for the French carmaker he has run since 2014, and the clear money-maker for Fiat Chrysler. Such a deal was long wanted by Fiat ChryslerÂ’s long-time CEO Sergio Marchionne, who had predicted the necessity of consolidation in the industry. He was unable to find a deal before his sudden death in July 2018.

The Chrysler brand could be axed under Stellantis management

MILAN — While running NissanÂ’s North American operations from 2009 to 2011, Carlos Tavares had a reputation for closely watching costs with little tolerance for vehicles or ventures that didnÂ’t make money. Experts say that means Tavares, currently the head of PSA Group, is likely to follow that blueprint when he becomes leader of a merged PSA and Fiat Chrysler Automobiles. The low-performing Chrysler brand might get the axe as could slow-selling cars, SUVs or trucks that lack potential. Already the companies are talking about consolidating vehicle platforms — the underpinnings and powertrains — to save billions in engineering and manufacturing costs. That could mean job losses in Italy, Germany and Michigan as PSA Peugeot technology is integrated into North American and Italian vehicles. “You canÂ’t be cost efficient if you keep the entire scale of both companies,” said Karl Brauer, executive analyst for the iSeeCars.com auto website. “WeÂ’ve seen this show before, and weÂ’re going to see it again where they economize these platforms across continents, across multiple markets.” Shareholders of both companies are to meet Monday to vote on the merger to form the worldÂ’s fourth-largest automaker, to be called Stellantis. The deal received EU regulatory approval just before Christmas. Tavares, who for years has wanted to sell PSA vehicles in the U.S., wonÂ’t take full control of the merged companies until the end of January at the earliest. He likely will target Europe for consolidation first, because thatÂ’s where Fiat vehicles overlap extensively with PSAÂ’s, said IHS Markit Principal Auto Analyst Stephanie Brinley. Europe has been a money-loser for FCA, and factories in Italy are operating way below capacity — a concern for unions, given FiatÂ’s role as the largest private sector employer in the country. “We are at a crossroads,Â’Â’ said Michele De Palma of the FIOM CGIL metalworkersÂ’ union. “Either there is a relaunch, or there is a slow agonizing closure of industry, in particular the auto industry, in Italy.” ItalyÂ’s hopes lie with the luxury Maserati and sporty Alfa Romeo brands, but De Palma said investments are needed to bring hybrid and electric technology up to speed. FiatÂ’s Italian capacity stands at 1.5 million vehicles, but only a few hundred thousand are being produced each year. Most factories were on rolling short-term layoffs due to lack of demand, even before the pandemic.

Junkyard Gem: 1975 Plymouth Fury Sedan

The Plymouth Fury was once among the most commonplace vehicles on American roads, with the 1970s being the most Furious decade of all. If you've watched a lot of Malaise Era cop shows, you've seen endless examples of the 1975-1978 B-Body Fury sedan; today's Junkyard Gem in Colorado is a civilian version with a very unusual combination of features and options. Though the 1975-1978 Fury is sibling to many much more famous B Platform Chryslers, including the Dukes of Hazzard General Lee and a lot of other highly revered Mopars of the late 1960s and early 1970s, it doesn't get the recognition it deserves today. Would the world be the same if Debbie Harry had posed in her Anya Phillips dress on the bumper of, say, a Ford LTD instead of the iconic '76 Fury on the cover of Plastic Letters? I've got this album cover hanging on my garage wall, right next to Sir Mix-a-Lot's My Hooptie and its '69 Buick Electra. This sun-baked '75 left the assembly line with some nice luxury options for an affordable midsize sedan of its time, including a padded vinyl roof. Factory air conditioning was a $437 option on the Fury in 1975, a price tag that comes to an attention-grabbing $2,185 in 2020 dollars. The MSRP on a Fury sedan that year started at just $3,571 ($17,840 today), so A/C jacked up the cost by close to 15%. The base engine was a 225-cubic-inch (3.7-liter) Slant-6, but this car took the next step up on the Fury engine hierarchy for 1975: a 318-cubic-inch (5.2-liter) V8 making 145 horsepower. Here's where things get a bit weird. That shift lever on the steering column controls a three-speed manual; this rig is commonly known as a three-on-the-tree. The most popular transmission setup on Detroit cars of the 1940s through the early 1960s, the good ol' three-on-the-tree survived here all the way through the 1979 model year in new cars and 1987 in new trucks. By 1975, most lower-priced American mid- and full-sized cars had the three-on-the-tree as base equipment, but by that time nearly every new-car shopper here opted for an automatic transmission or — occasionally — a floor-shifted three- or four-speed manual. The total number of 1975 Fury buyers who sprang for the V8 engine, air conditioning, and a vinyl roof yet still kept the old-fashioned three-on-the-tree transmission setup probably can be counted in the low hundreds, if even that many.

FCA CEO Mike Manley will run Americas for Stellantis after PSA merger

DETROIT — Fiat Chrysler CEO Mike Manley will run operations in the Americas when his company merges with FranceÂ’s PSA Peugeot early next year. FCA Chairman John Elkann announced ManleyÂ’s new post on Friday in a letter to employees. ManleyÂ’s role in the merged company had been a mystery. PSA CEO Carlos Tavares will run the overall company, to be named Stellantis. Shareholders of both companies will vote on the merger Jan. 4 to seal the deal creating the worldÂ’s fourth-largest automaker. The merger is expected to be completed by the end of March. PSA will get six seats on the new companyÂ’s 11-member board, which will be chaired by Elkann. The Americas, especially the U.S., are key to the new companyÂ’s success. Fiat ChryslerÂ’s Jeep and Ram brands are highly profitable, and Tavares has long wanted to sell PSA vehicles in the U.S. Manley has been the Italian-American automakerÂ’s CEO for 2 1/2 years, taking over when Sergio Marchionne died in 2018. Stellantis will have the capacity to produce 8.7 million cars a year, just behind Volkswagen, the Renault-Nissan alliance and Toyota. Related Video: Hirings/Firings/Layoffs Chrysler Dodge Fiat Jeep RAM Citroen Peugeot Mike Manley Stellantis

Minivan Comparison | Sienna vs Odyssey vs Pacifica vs Sedona

The minivan segment is fresher than it's been in years, possibly decades. The 2021 Toyota Sienna is a completely redesigned model with a bold new look and standard hybrid powertrain. Both the Honda Odyssey and Chrysler Pacifica were refreshed for 2021 with updated styling, upgraded tech, and in the case of the Pacifica, newly optional all-wheel drive. Only the 2021 Kia Sedona soldiers on without changes; it's still a solid van despite its advanced age and relatively few people buying it.  Usually when we put a comparison like this together, we have to pick and choose which vehicles to include (mostly because we can't do some 15-car spreadsheet without utilizing 4-point font). In the case of minivans, there are only four. That certainly makes it easier to research and cross-shop in person without worrying that you might be missing out on something. It also makes it a bit easier to go beyond the usual spreadsheet and dig a little deeper than normal into the competitors. Let's take a brief look at each. 2021 Toyota Sienna The Sienna is completely new for '21 after going a decade with only updates. Its exterior style is more expressive than before, but it's the new cabin that really impresses — it's far more car-like in appearance, but still offers the expected amount of abundant storage and functionality. Mechanically, the big news is that every Sienna is now a hybrid. Though down a bit on power compared to everything else, its 36 mpg combined (or 35 mpg with all-wheel drive) crushes everything but the Pacifica plug-in hybrid. This exceptional fuel economy and its far-sliding, big-kid-friendly second-row seats are its main selling points, but in every other respect, it's fully competitive.  Read our full 2021 Sienna Review 2021 Toyota Sienna View 41 Photos 2021 Chrysler Pacifica The Pacifica gets its first comprehensive set of upgrades since it was all-new for '17. The front end has been restyled, all-wheel drive is now an option and there's a new Pinnacle range-topping trim. The big news, however, is its technology offerings. Every Pacifica now comes standard, as the Odyssey and Sienna do, with a comprehensive array of driver assistance technologies. Every trim also gets Chrysler's latest UConnect infotainment system with a larger, 10.1-inch touchscreen and wireless Apple CarPlay and Android Auto.