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FCA CEO Mike Manley will take undefined new role after PSA merger

MILAN — Fiat Chrysler Chief Executive Mike Manley will remain with the new group set to result from a planned merger with French rival PSA-Peugeot, Chairman John Elkann said on Wednesday. In a letter to Fiat Chrysler (FCA) employees on the day the two companies announced a binding agreement for a $50 billion tie-up to create the world's fourth-largest carmaker, Elkann said he was "delighted" that the combined group would be led by current PSA CEO Carlos Tavares. "And Mike Manley, who has led FCA with huge energy, commitment and success over the past year, will be there alongside him," he said. He did not say what position Manley would hold. Elkann — who will chair the new group — said there was still much to be done to complete the merger. "Over the coming months we must work tirelessly and determinedly to fulfill all the approval requirements needed to finalize the commitment we have signed," he said. Related Video:     Hirings/Firings/Layoffs Chrysler Dodge Fiat Jeep RAM Citroen Peugeot FCA PSA merger Mike Manley carlos tavares

Stellantis reports surprising 2020 results, is 'off to a flying start'

MILAN — Low global car inventories and cost cuts should boost Stellantis's profit margins this year, though a shortage of semiconductors and investments in electric vehicles could weigh on results, the newly-formed automaker said on Wednesday. The forecast came as Stellantis, created by the January merger of Peugeot-maker PSA and Fiat Chrysler (FCA), reported better-than-expected results for 2020 that sent its shares up around 3% in morning trading. "Stellantis gets off to a flying start and is fully focused on achieving the full promised synergies (from the merger)," Chief Executive Carlos Tavares said in a statement. Stellantis is the world's fourth largest carmaker, with 14 brands including Fiat, Peugeot, Opel, Jeep, Ram and Maserati. It said 2021 results should be helped by three new high-margin Jeep vehicles in North America and a strong pricing environment there. The U.S. market has driven profits for years at FCA and starts off as the strongest part of Stellantis. The group's guidance assumes no more significant lockdowns caused by the global COVID-19 pandemic, which shuttered auto plants around the world last spring. Stellantis should also get a lift as its starts to implement a plan aimed at delivering over 5 billion euros a year in savings, without closing any plants. Tavares has also pledged not to cut jobs. But a pandemic-related global shortage of semiconductors, used for everything from maximizing engine fuel economy to driver-assistance features, could hurt business. Auto industry executives have said the shortage should ease by the second half of 2021. Stellantis said its "electrification offensive" could also weigh on results this year. Automakers are racing to develop electric vehicles to meet tighter CO2 emissions targets in Europe and this week Volvo joined a growing number of carmakers aiming for a fully-electric line-up by 2030. Stellantis plans to have fully-electric or hybrid versions of all of its vehicles available in Europe by 2025, broadly in line with plans at top rivals such as Volkswagen and Renault-Nissan, although Stellantis has further to go to meet that goal. The carmaker is targeting an adjusted operating profit margin of 5.5%-7.5% this year. That compares with a 5.3% aggregated margin last year: 4.3% at FCA and 7.1% at PSA excluding a controlling stake in parts maker Faurecia, which is set to be spun-off from Stellantis shortly.

2018 Jeep Wrangler scores 1 star in European crash tests

The Jeep Wrangler got a full redesign for the 2018 model year, and this Euro NCAP test we have here is the first official independent safety testing we've seen for the new model. Historically, the Wrangler has performed poorly in crash tests. The U.S. National Highway Traffic Safety Administration awarded the previous generation a three-star rating. Euro NCAP testing puts a lot more weight on driver assistance systems in its testing, an area where the new Wrangler is somewhat lacking. It lost points for not having things like automatic emergency braking and lane-keep assist — the Wrangler doesn't offer either of those things in Europe, even as an option. However, the 2019 model year Wrangler does (2018 does not) offer active braking for the U.S., a $795 package gives your Wrangler the ability to brake itself to a full stop if it senses the risk of a collision. This package includes adaptive cruise control, too, but lane-keep assist is not available. On top of the lack of active driver safety systems, its performance in NCAP's impact testing left a bit to be desired, as well. We did the math to see the raw Euro NCAP scores for a crash without it being dragged down by the driver assistance systems, and adult occupant safety came out to 56.7 percent. Child occupant safety was a tad better at 69 percent. These still aren't great numbers, so it's clear that the lack of driver assistance features isn't the only thing pulling the score down. We aren't particularly surprised by the Wrangler's numbers, but it's information potential buyers should know about the truck. For those wanting an even deeper dive, check out Euro NCAP's full testing results here. The Euro NCAP also released a video of its Jeep Wrangler crash testing, which you can watch above. None of it looks particularly egregious at first blush, especially compared to video of the Fiat Panda, which recently received a whopping zero star rating. Scoring zero stars in a crash test is always a red flag, but customers won't ever buy the Panda in the U.S. anyway. We'll be watching for crash test ratings from the NHTSA and the Insurance Institute for Highway Safety for U.S. market 2018 Wranglers to see if those tests produce different results. Related video: