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For his last act, Marchionne will outline an EV/hybrid roadmap this week

MILAN/LONDON — Fiat Chrysler (FCA) boss Sergio Marchionne is expected to outline new plans for electric and hybrid cars in a strategy presentation on Friday, aiming to ensure the world's seventh-largest carmaker remains in the race in the absence of a merger. The 65-year-old will present FCA's strategy to 2022, his final contribution to the company he turned around and multiplied in value through 14 years of canny dealmaking. After failing to secure a tie-up he said was necessary to manage the costs of producing cleaner vehicles, Marchionne needs to show the group can keep churning out profits on its own, even as emissions rules tighten, SUV competition intensifies and worries around his succession abound. Marchionne had long refused to jump on the electrification bandwagon, saying he would only do so if selling battery-powered cars could be done at a profit. He even urged customers not to buy FCA's Fiat 500e, its only battery-powered model, because he was losing money on each sold. But Tesla's success and the need to comply with tougher emissions rules have forced Marchionne to commit to what he calls "most painful" spending. "FCA is way behind rivals in terms of hybrid and electric vehicles and they need to hit the accelerator to convince investors they can close that gap," said Andrea Pastorelli, a fund manager at 8a+ Investimenti. Germany's Volkswagen, Daimler, BMW and U.S. rivals GM and Ford have committed to spending billions of euros each in coming years to try produce profitable cars powered by cleaner fuels. FCA needs to present a clear roadmap, just like Volvo Cars, which ditched diesel from its best-selling XC60 SUV, launched a new electric brand and pledged to shift all brands to hybrid by 2019, a banking source close to FCA said, noting: "The tech divide determines winners and losers in the industry." Marchionne has already said half of the wider FCA fleet will incorporate some elements of electrification by 2022, while luxury marque Maserati will spearhead FCA's electrification drive by making all new models due after 2019 electric. But its plans remain vaguer and less advanced than most big rivals and some investors wonder about the capital required to make vehicles compliant, and what share of spending can go to electrification given FCA's numerous demands.

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.

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