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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.

2019 Ram 1500 V8 First Drive Review | New pickup has more of everything

SCOTTSDALE, Ariz. – There's a lot going on with the 2019 Ram 1500: inside, outside, out back, and under the hood. New engine options — two of which feature 48-volt eTorque assistance for extra grunt — and lots of attitude-heavy trims. But our first experience with the '19 Ram is focused on the totality of the truck experience — taking a step back, a deep breath of desert air, and soaking it all in. Ram is staking out a fascinating niche in an incredibly competitive segment. More than anything, this is a very comfortable truck, and that's exactly what it needs to be. Remember, Ram ditched leaf springs for coil springs 10 years ago, figuring a smoother ride outweighed the cost. That didn't make it less truckish, since capabilities also increased. And the same goes here: The suspension geometry is tweaked even further, giving it better control over speed bumps in the Phoenix suburbs as well as the desert washes, guarded by saguaro sentinels. Lest you think this means the 1500 gives up anything on its predecessor, properly equipped the '19 can tow up to 12,700 pounds. Yes, with the 1500 ... not a dual-axle, heavier-grade 3500 or something. Maximum payload is up to 2,320 pounds, too — although that rating is only for a 3.6L 4x2 with a 3.55 rear end. There's got to be a tradeoff, right? Maybe Ram pinched the interior to save weight. Nope — both the Quad and Crew cabs are bigger. The Crew Cab grows more, though, with 4 extra inches of extra wheelbase finding its way into the massive space behind the front seats — there's 45.2 inches of legroom back there, which is about 5 inches more than before. This process of critically assessing the Ram, looking for clues that something was worse or amiss, simply came up empty. The only area the 1500 seems to show weakness is in pricing — generally it's more expensive across the board, by a few hundred dollars, although some of that is offset by favorable options packaging or additional content. And, of course, with increased complexity there's the potential for higher running costs down the road — something we can't evaluate until these trucks have been on the road for years. Back to the present: The conclusion we came to is that Ram simply invested in multiple areas in this truck. A bit of the cost is passed onto the buyer, but not as much as you'd think. To translate from beancounter: Pay a little bit more, get a lot more.

UAW papers reveal release dates for new Dodge, Jeep and Ram models

Documents published by the United Auto Workers union reveal key information about some of the products Dodge, Jeep and Ram will release during the early 2020s. All three brands will try to capitalize on the growing demand for trucks and SUVs in the United States. The agreement between the UAW and Fiat Chrysler Automobiles (FCA) outlines what the period between 2019 and 2023 will look like from an employee's vantage point. The $4.5 billion factory the automaker is building in Detroit will begin manufacturing a three-row Jeep model in 2020, and it will add the next-generation Grand Cherokee to its roster the following year, according to CarScoops. The new Grand Cherokee will also roll out of the Jefferson North facility that makes the current model scheduled to retire shortly before its successor arrives. The Dodge Durango will continue to be built there, and the UAW papers mention a mild-hybrid variant of the SUV due out before the end of 2020. Two body-on-frame Jeep models tentatively scheduled to revive the heritage-laced Wagoneer and Grand Wagoneer nameplates will break cover in 2021. They will be built alongside Ram pickups at the Warren Truck plant, and odds are the three models will share several components under the sheetmetal. Adding the two Jeep models is expected to create 1,400 jobs, FCA predicted. Speaking of Ram, the high-performance TRX model (pictured) aimed at the Ford F-150 Raptor's jugular is penciled in for a 2020 launch. The concept that previewed the model made its debut in 2016, so it's reasonable to assume it will have changed considerably by the time it reaches showrooms. It will be based on the newest variant of the 1500, not on the last-generation model still sold as the Classic. What won't change is the supercharged, 6.2-liter Hellcat V8 between its fenders. The plug-in hybrid Wrangler remains on track for a 2020 launch. The Cherokee will continue to come out of Belvedere Assembly in Illinois, but the UAW's documents mention "fresh models / features" off of its unibody platform. Whether that means new trim levels or additional body styles remains to be seen, but it sounds like something new and Cherokee-related is around the corner. The ancient Dodge Journey shares at least one thing with the beater you drove in high school: a four-speed automatic transmission. The gearbox is finally on its way out, according to the UAW, and the 2.4-liter four-cylinder engine that powers the entry-level model isn't long for this world, either.