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Stellantis won't race to split electric vehicles from fossil fuel cars

MILAN - Stellantis is not considering splitting its electric vehicle (EV) business from its legacy combustion engine operation, its finance chief said on Thursday, as the carmaker presented above-expectation revenue data for the first quarter. Chief Financial Officer Richard Palmer told analysts he did not see huge benefits in the kind of separations pursued by rivals such as France's Renault and U.S. Ford. "We need to manage the company and the assets we have through this transition," he said. "There are benefits to having the cash flow being generated by the internal combustion business for the investments we need to make." Palmer said the group, formed by a merger last year of Fiat Chrysler and Peugeot maker PSA, was not averse to considering adjusting its structure "but we aren't anticipating any big changes." Palmer's comments came after the world's fourth largest carmaker said its net revenue rose 12% to 41.5 billion euros ($44.1 billion) in the January-March period, as strong pricing and the type of vehicles sold helped offset the impact of the semiconductor shortage on volumes. That topped analyst expectations of 36.9 billion euros, according to a Reuters poll. Milan-listed shares were up 0.5% by 1415 GMT, in line with Italy's blue-chip index. The impact of the chip crunch was evident in the decline in shipment figures which fell 12% in the quarter to 1.374 million vehicles. It was a similar story for Germany's BMW which posted higher revenues on Thursday and a decline in car sales. Riding the Recovery Stellantis, whose brands also include Citroen, Jeep and Maserati, confirmed its 2022 forecasts for a double-digit adjusted operating income margin, after 11.8% last year, and a positive cash-flow despite supply and inflationary headwinds. Morgan Stanley analysts said after the results that Stellantis had better management than many peers and benefited from its significant exposure to a stronger U.S. economy and a European recovery from the COVID-19 pandemic. They also said it was less affected by a slowing Chinese economy. Palmer said it was important for the group to maintain double-digit margins and keep delivering positive cash flows. "A 12% increase in revenue with a 12% decrease in volumes indicates a very strong performance on price and mix, which augurs well for our margin performance," he said. He said semiconductor supply problems were expected to ease this year with continued improvements in 2023.

2018 Jeep Wrangler will have an aluminum hood and doors, leaked memo says

Earlier this year, FCA CEO Sergio Marchionne revealed that 2018 Jeep Wrangler would feature a heavy dose of aluminum, though he didn't specify how. Now, JL Wrangler Forums says the Wrangler will use the material for the hood and the doors, citing an internal bulletin from aluminum supplier Alcoa. According to the forum, the company says the next-gen Wrangler will utilize Aloca's C6A1 (an internal name) high form alloy. The SUV will also get 6022 and A951 from Alcoa that will be used on the SUV's front and rear doors, as well as for the hood. Alcoa's C6A1 is the company's new high form alloy, while its 6022 alloy sheet can be found on things like a car's hood, door, or closure panels. Alcoa's A951 is the company's pre-treatment aluminum sheet bonding technology that it uses on automobiles. "A team in the Farmington Hills (Michigan, USA) Aerospace and Automotive Products group is leading a new profitable growth opportunity with the 2018 Jeep Wrangler program. The next generation Jeep becomes the first to utilize our C6A1 high form alloy; we are currently the only supplier of this high form product. Alcoa will also supply 6022 and A951, including front and rear door inners, hood outer and inner." As Marchionne pointed out earlier this year, the 2018 Wrangler won't be made entirely out of aluminum. So Alcoa's contribution to the upcoming SUV's doors and hood could be the only components that use the lightweight metal – or Jeep could be using another aluminum supplier for other parts. Large changes lie ahead for the 2018 Wrangler, which include a pickup version, new engines, and aluminum. But we do know that the next Wrangler is that it will be built in Toledo, OH, as FCA announced plans to spend $1.05 billion to retool the Wrangler factory, while also adding another site in Illinois earlier this year. Related Video:

Chrysler to accelerate production of 2013 Ram and V6 engines

Chrysler is adding a third shift at its Warren Truck plant to meet demand for the new 2013 Ram pickup. And with tight supplies of its Pentastar V6, the company is also boosting output at its Mack Engine plant.
The expansions will add 1,250 jobs and are part of a $238 million investment by Chrysler in the Detroit area. Warren's third shift will begin work sometime in the spring, a Chrysler rep told Automotive News. Mack's increased Pentastar production a could include both 3.6 and 3.2-liter engines.
The company says it also plans to invest $40 million in its Trenton Engine plant to allow for production of a 3.2-liter V6 as well as the Tigershark inline-four for the upcoming Jeep Liberty replacement.