1969 Chrysler New Yorker on 2040-cars

Auto blog

Marchionne's FCA-GM merger might come after Ferrari spinoff

Sergio Marchionne is continuing to rumble about working out a merger with General Motors, but don't expect anything big to happen before at least early next year. That's because Marchionne would likely wait for the Ferrari spin-off to be complete before beginning his next big deal, according to Automotive News. While the Ferrari IPO on the New York Stock Exchange is expected in the coming weeks, that only concerns 10 percent of the shares. The remaining 80 percent of stock is being distributed among shareholders in 2016. Piero Ferrari holds the final 10 percent with no intention to sell. This strategy allows FCA to claim 80 percent of the Prancing Horse's profits in the automaker's 2015 financial results. According to Automotive News, the tactic has other advantages, as well. FCA would be flush with cash by waiting for the spin-off to be complete, and it would keep Ferrari separate if a GM merger actually happens. Marchionne thinks Ferrari could be valued at over $11 billion in the IPO, and it could make FCA $3.3 billion richer when complete. Marchionne believes a combined FCA/GM could sell 17 million vehicles a year globally and rake in $30 billion in earnings. In the CEO's opinion, the two automakers are wasting money by developing components to do the same things on their vehicles. Although, so far the General's top execs are rebuffing all of his advances.

Junkyard Gem: 2001 Plymouth Neon

Chrysler's Plymouth brand was created in 1928 (and named after a brand of twine favored by farmers), in order to compete against Ford and Chevrolet for entry-level car shoppers. Plymouth stayed in third place in the US-market new-car sales hit parade for most of the years through the early 1950s and remained a strong (if gradually shrinking) player for decades after that. By the 1990s, though, it was tough to distinguish Plymouths from Dodges and DaimlerChrysler announced in late 1999 that the Plymouth Division would be getting the axe. 2001 was the last model year for Plymouth, with just one kind of vehicle sold for that year: the Neon. Today's Junkyard Gem is one of those final Plymouths, found in a Denver self-service yard recently. In the years just before the DaimlerChrysler "merger of equals," Chrysler had attempted to make the Plymouth brand more interesting. An updated version of the old Plymouth ship emblem was created, a Plymouth-badged car on the Chrysler LH platform was planned, the PT Cruiser was going to be a Plymouth, and then there was the Prowler crypto-hot-rod. Those dreams of a revived Plymouth bit the dust once Herr Schrempp took over. The Prowler and Voyager became Chryslers, while the PT Cruiser never had even a single year of Plymouth badging. The only 2001 car sold as a Plymouth was the humble Neon. Since the very beginning of Neon production as a 1995 model, there never had been much difference between the Neons with Dodge badges and the ones with Plymouth badges, continuing the tradition of the Dodge/Plymouth Colt and Dodge Omni/Plymouth Horizon. Earlier generations of Plymouths (e.g., the Valiant) had been mechanically identical to their Dodge-badged siblings, but at least they looked different and had smaller price tags. In 2001, the MSRP of a base Dodge Neon was $12,715, or about $22,156 in 2023 dollars. The price of the base 2001 Plymouth Neon? $12,715. At least the Plymouth Division got two model years in which to sell the second-generation version of the Neon. The engine is the SOHC version of Chrysler's 2.0-liter straight-four, rated at 132 horsepower and 130 pound-feet. Sorry, 2001 Plymouth shoppers, your Neons didn't get the 150-horse version that Dodge Neon R/T and ACR models received that year. This car has some extra-cost goodies. There's this three-speed automatic transmission, which had a $600 cost ($1,036 in today's money). It has the $1,000 air conditioning option as well ($1,742 now).

Stellantis moves to set up its own lending unit

Stellantis is buying Houston-based auto lender First Investors Financial Services Group to set up its own finance arm in the U.S., a move that should support sales and eventually boost profit. The only major traditional automaker in the U.S. without its own finance company agreed to pay $285 million to a group of investors led by Gallatin Point Capital and Jacobs Asset Management, according to a statement. The transaction is expected to close by year-end. Stellantis was formed via the merger between Fiat Chrysler and PSA Group early this year. Carlos Tavares, the PSA boss who became the combined company’s chief executive officer, called the deal to acquire First Investors a milestone that will increase earnings and enhance customer loyalty. “Direct ownership of a finance company in the U.S. is a white-space opportunity which will allow Stellantis to provide our customers and dealers a complete range of financing options,” Tavares said Wednesday in the statement.  Having an in-house finance company has helped rivals General Motors Co. and Ford Motor Co. pad profits, especially during the global semiconductor shortage that has limited production and crimped sales. GM bought subprime lender AmeriCredit Corp. in 2010 and renamed it GM Financial. The operation generated a $2.76 billion profit in the first half -- roughly a third of the companyÂ’s adjusted earnings before interest and taxes. Trouble for Santander? The First Investors acquisition could spell trouble for Chrysler Capital, the operation that Santander Consumer USA Holdings Inc. and Chrysler set up in 2013 before the U.S. automaker completed its merger with Fiat. In a statement, Santander Consumer said itÂ’s committed to supporting Stellantis through the term of their existing agreement and its transition. Santander Consumer will also have “ongoing conversations with Stellantis about long-term mutually beneficial opportunities beyond 2023,” the company said, adding that its consumer business remains strong and has “delivered solid results for our shareholders.” This, along with support from its parent company, will allow the lender to “pursue additional opportunities as they arise.” The lenderÂ’s U.S.-listed stock fell 1.5% in New York trading Wednesday after Bloomberg reported Stellantis was preparing to announce a new finance partner. Stellantis shares rose as much as 1.3% in Paris trading Thursday.