1998 Mercedes Benz Ml320 Suv M-class on 2040-cars

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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.

FCA and Peugeot reportedly agree on merger

Citing a Wall Street Journal report, the Detroit Free Press says "Fiat Chrysler and PSA Groupe have agreed to merge." The Journal reported on talks between the two car companies only yesterday. It's said that Peugeot's board met yesterday to approve the deal, FCA's board met today, and an announcement could come as soon as tomorrow, Thursday. Both automakers have released statements, but neither company has released any information beyond admitting to ongoing talks. If the merger happens, the combined entity would become the world's fourth-largest carmaker with a $50 billion valuation, slotting in behind Toyota, the Volkswagen Group, and the Renault Nissan Mitsubishi alliance. Among the merger options possible, "an all-stock merger of equals" is the one analysts and Moody's seem to give the best grade. The reported merger would come about four months after FCA walked away from merger talks with Renault. FCA said the French government scuppered those talks over the role of Nissan in a reformed entity, but there were also brewing issues with French unions, and ongoing turmoil among Renault and Nissan leadership thanks to continuing fallout from ex-CEO Carlos Ghosn's arrest last year. FCA makes most of its revenue in the U.S. and rules Italy, while Peugeot is the second-best-selling automaker in Europe with its own brand in France and Opel in Germany. The two companies already have a partnership in Europe making vans, one that FCA CEO Mike Manley has spoken highly of. Among the list of obvious benefits in a potential merger, FCA would get access to Peugeot's small, modern platforms, $10.2 billion in cash, and electrified and hybrid architecture developments, the latter especially important to FCA as those are fields where it lags. Peugeot would get much easier access to the U.S. market, and the money-printing brands Jeep and Ram. A merged carmaker would have combined sales of nearly 9 million a year, based on 2018 results. By comparison, both Volkswagen and Toyota sell over 10 million cars a year, while the Renault-Nissan-Mitsubishi alliance almost 11 million. Peugeot CEO Carlos Tavares has proved he knows how to do turnarounds and mergers. After leaving a position as Carlos Ghosn's right-hand man in 2012, Tavares took over Peugeot in 2014, navigated a bailout from the French government and China's Dongfeng Motors in 2015, and turned PSA into a regional powerhouse.

Dodge Charger SRT Hellcat Redeye Widebody expected for 2021

As of writing, Dodge still won't confirm that a Charger SRT Hellcat Redeye Widebody exists, even though camouflaged and debadged versions have already been spotted. Furthermore, before the automaker was forced to cancel this year's LX Sprint Fest 15, a poster advertising the event pictured a Charger SRT with a Dodge Demon-like hood, thought perhaps to be a "concept" version of the sedan in question. Once expected as a product for the 2020 model year, the sedan according to Mopar Insiders is now on the way for 2021 with tweaked looks to go with the centerpiece 6.2-liter Hemi V8 with 797 horsepower and 717 pound-feet of torque. The biggest cosmetic change will be the hood, a larger, redrawn center scoop dominating the front and feeding a cold-intake system pulled from the Demon. The two heat extractors move further back on the hood and rotate 90 degrees to face the sides of the sedan instead of facing the windshield. It will be available only in widebody form, and Redeye badges will adorn the grille, fenders, and decklid. Under the skin, changes compared to the Charger SRT Hellcat include a 6,500-rpm redline, 500 rpm higher than the 707-hp Charger Hellcat, a second dual-stage fuel pump, fitment of the SRT Power Chiller and the SRT After-Run Chiller also from the Demon, as well as stronger prop shafts and half-shafts. MI also mentioned the availability of either a standard 2.62 final drive ratio or an optional 3.09 final gear, production intent for concept wheels that were slated to show at LX Spring Fest, and a new SRT Performance Spoiler. The changes could drop the dash to 60 miles per hour a couple of tenths to 3.4 seconds, and get the widebody's top speed back over the 200-mph mark.  The question now is when the sedan will make its debut. MI thinks the Charger SRT Hellcat Redeye Widebody will first greet the public at FCA's What's New media roundup this summer. However, with this month still obscured by coronavirus clouds and even late summer events still being canceled, its impossible to know when we'll get a look at the new muscle sedan. Related Video: