1990 Jeep Wagoneer on 2040-cars

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Stellantis reports $15B profit in first year of merger

FRANKFURT, Germany — Automaker Stellantis said Wednesday that it made 13.4 billion euros ($15.2 billion) in its first year after it was formed from the merger of Fiat Chrysler Automobiles and PSA Group. The earnings nearly tripled profits compared with its pre-merger existence as two separate companies, as the maker of Jeep, Opel and Peugeot vehicles exploited cost efficiencies from combining the businesses. The result compared to a combined 4.79 billion euros for the separate companies in 2020 before the merger, which took effect on Jan. 17, 2021. Revenue for the combined business rose 14%, to 152 billion euros. CEO Carlos Tavares said the results “prove that Stellantis is well positioned to deliver strong performance" and had overcome “intense headwinds” during the year. Automakers have struggled with shortages of key parts such as semiconductor electronic components and rising costs for raw materials as the global rebound from the worst of the coronavirus pandemic brings more demand. The company said the benefits of the merger were worth some 3.2 billion euros during the year. Mergers can lead to streamlined costs as companies combine functions and spread fixed costs over a larger revenue base. The company accelerated its rollout of battery-powered vehicles, with sales of low-emission vehicles reaching 388,000 — an increase of 160%. Stricter environmental regulations in Europe and China are pushing automakers to roll out more electric vehicles with longer range. Stellantis started production of a hydrogen fuel cell commercial van under its Opel brand in December. Stellantis' other brands include Chrysler, Citroen, DS, Fiat, Maserati, Ram and Vauxhall. Related video: Earnings/Financials Chrysler Dodge Ferrari Fiat Jeep RAM Citroen Opel Peugeot Vauxhall

Video charts evolution of Jeep from military vehicle to SUV powerhouse

Here's a fun new video from our car-obsessed friends at Donut Media. It shows the evolution of the iconic Jeep from its World War II roots to the forthcoming 2019 Scrambler pickup in a little over two minutes. Using illustrations and audio of Jeep engines and broadcast advertising spots, it's a fascinating look at the common traits that have persisted over more than 75 years and changing consumer preferences. Three companies originally responded to the U.S. Army's request in 1940 for proposals to make a quarter-ton "light reconnaissance vehicle" tailored to its specs — Bantam, Ford and Willys. The video starts by showing all three early contenders — the Bantam Reconnaissance Car, Ford Pygmy and Willys MB, which was based on the Willys-Overland "Quad" prototype, named for the 4x4 system it utilized. Willys eventually won the contract in 1941 to build 16,000 revised MB models for American and Allied forces. Willys would trademark the Jeep name in 1945 with its CJ-2A, a Civilian Jeep geared toward farmers. As the video shows, Jeep really started to diversify its body styles and colors in the 1970s and '80s under the ownership of American Motors Corp., which purchased the money-losing Jeep brand in 1970 from Kaiser-Jeep, which itself had acquired the brand from Willys in 1953. The '70s brought models like the CJ-5 Renegade and CJ-5 Laredo, and the video includes updates including the second-generation Wrangler Unlimited in 2004 and the Wrangler-based Scrambler pickup. Chrysler purchased Jeep from American Motors in 1987, shortly after the debut of the Jeep Wrangler, and has managed to hold onto the brand and ride it to success despite its own bumpy ownership trials and tribulations since then. Despite the many owners over time, Jeep has maintained its headquarters all along in Toledo, Ohio.

Fiat Chrysler halts European production as coronavirus hits demand

MILAN — Fiat Chrysler Automobiles (FCA) is halting production for two weeks at most of its European plants to help protect staff against the coronavirus pandemic and adjust to a slump in demand, the Italian-American carmaker said on Monday. Italy has been the European country worst hit by the crisis and the first to enforce a nationwide lockdown, which has now been replicated by Spain and, to a lesser extent, by France as the virus sweeps through the continent. With all non essential services closed, including car dealers, and people forced home except for strict working needs, many forecast a heavy fall in car sales in March. FCA — which according to analyst estimates produces around 25% of its vehicles in Europe — said the suspensions through March 27 would allow it "to effectively respond to the interruption in market demand by ensuring the optimization of supply." Ferrari, meanwhile, said it closed its two plants until March 27. Ferrari said it had so far ensured production continuity, and it already implemented all the health measures decided by the Italian government at the two sites, in hometown Maranello and in Modena. But it was "now experiencing the first serious supply chain issues, which no longer allow for continued production." Marco Opipari, an analyst at Fidentiis, said a few weeks of closures was not a big problem in an over-supplied European auto industry and lost production could be recovered later on. "The real problem is on the demand side, people are not buying cars now, and sales volumes are expected to be very bad in March, with a real impact on automakers' earnings," he said. FCA said in a statement that production for its FCA Italy and luxury Maserati units would stop for two weeks, extending a temporary closure period already planned for some Italian facilities. Affected plants are Melfi, Pomigliano, Cassino, Mirafiori, Grugliasco and Modena in Italy, Kragujevac in Serbia and Tychy in Poland. The FIOM union said FCA's decision was "necessary". The carmaker said the freeze would help it to resume activity promptly once market conditions allow it. "The group is working with its supply base and business partners to be ready to enable our manufacturing operations to deliver previously planned total levels of production despite the suspension when market demand returns," it said.