Ready For The Trails Or Cruising Around Town Nothing Says Fun Like A Jeep on 2040-cars

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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.

Why the 2018 Jeep Grand Cherokee Trackhawk really exists

"But really, what do we do for Jeep? We listen to our customers, that's our job. We give them what they want. So the reason why is, they ask. Lots of them asked." – Darryl Smith "Why not?" It's a simple-enough explanation and one that should resonate with any car lover who views the absurd and the gloriously pointless as fundamental principles of their passion. And putting a ridiculously powerful engine into a vehicle that would normally not have one is perhaps the pinnacle of that. It's the reason that so many of us view a Mercedes-AMG E63 wagon as far cooler than an SLS AMG with roughly the same engine. With that in mind that we sat down with two of the men responsible for the 2018 Jeep Grand Cherokee Trackhawk, the latest entry into the absurd and gloriously pointless segment. We wanted to find out from Darryl Smith, director for SRT engineering, and Paul Mackiewicz, vehicle development manager, if there were actual market-based reasons for the Trackhawk's creation. Effectively, why'd they actually do it? "Why not?" Smith immediately offered during an interview at the New York Auto Show, clearly possessing a similar mindset. "But really, what do we do for Jeep? We listen to our customers, that's our job. We give them what they want. So the reason why is, they ask. Lots of them asked." View 24 Photos If "lots" of people are asking for a 707-horsepower, 645-pound-feet, off-road-capable, luxury-lined, five-person SUV, then perhaps we shouldn't be too worried about the demise of the human-driven automobile after all. "There is a very defined customer base out there that want a sport SUV," Mackiewicz said. "They want a sports car with the capabilities of having an SUV, of being able to tow, of being able to drive their sports car all year round. And that's what this car enables. It is ultimate performance, all year round, in any condition." If BMW, Mercedes-Benz, Porsche, and even Maserati can produce high-performance SUVs, doesn't it seem fitting that the father of all SUV brands should top them all under the hood? Of course, expanding the 6.2-liter Hellcat engine beyond the Challenger and Charger is clearly a smart business case in the current SUV-obsessed marketplace. FCA had a lust-worthy engine, and it had a solid performance base in the existing Grand Cherokee SRT, so it can be argued that marrying the two made sense and that it could be done with minimal fuss — even if in practical terms, it's absurd.

FCA to idle Belvidere Jeep plant again for a week in February

Bloomberg reports that Fiat Chrysler will shut down the Belvidere, Ill., plant that assembles the Jeep Cherokee for a week this month, starting February 17. FCA has been tweaking the plant's headcount and production schedule for a while now, usually downward. The automaker laid off 1,371 workers last February and fired 32 more in May, the same month it eliminated the third production shift. In August, the automaker shut down the plant for one week, then did so again for two weeks last month. As in August and January, FCA explained this month's idling by saying it needs to get production in alignment with demand. Cherokee sales declined 20% in the U.S. last year, helping to account for Jeep's overall 5% domestic drop in 2019. On top of the shutdown, FCA is offering buyouts to certain plant workers among the 3,600 hourly and 300 salaried personnel. The choices are either taking a "separation package" that comes with a $60,000 lump sum payment, or accepting voluntary termination that pays a lump sum based on seniority. Employees that choose a buyout can't return to Chrysler, becoming no longer "eligible for recall, rehire or reemployment." Belvidere personnel have until March 11 to make their decisions. Bloomberg says the aim is to reduce the number of workers with more seniority and higher pay grades; a company spokesperson said the move would "create opportunities for those employees still on layoff," who were lesser-paid. Around 900 of those laid-off workers remain on standby for reassignment to another plant. Analysts predict a soft year for car sales, so FCA might not be the only automaker pruning the rolls. Early estimates have come in below 17 million, and if that comes true, 2020 will be the slowest year since 2014, when 16,531,070 units left lots. The new contract between FCA and the UAW made provisions for Belvidere, which has tempered talk of a total shutdown.The automaker will invest $55 million for "fresh models/features off of the current (KL) platform" that underpins the Cherokee as well as the Chinese-market Jeep Grand Commander (it was previously used for the Dodge Dart and Chrysler 200). Outside of that, some observers think the carmaker could be planning a three-row Chrysler crossover based on the KL platform, akin to the Grand Commander, for the United States. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.