2014 Ram 1500 Tradesman/express on 2040-cars

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Stellantis reports record margins, $7B profits despite chip shortage

MILAN — Automaker Stellantis on Tuesday said it achieved faster-than-expected progress on synergies and record margins in its first six months as a combined company, despite suffering 700,000 units in lower production due to interruptions in the semiconductor supply chain. The company — formed from French carmaker Peugeot PSAÂ’s takeover of the Italian-American company Fiat Chrysler — reported net profit of 5.9 billion euros ($7 billion) in the first half of 2021, compared with a loss 813 million euros during the same period a year earlier, which was impacted by the coronavirus restrictions around the globe. Shipments rose 44% to 3.2 million units, while revenues rose 46% to 75 billion euros. “We are very pleased with the speed with which the new team has begun to execute as one company, as Stellantis,Â’Â’ Chief Financial Officer Richard Palmer told reporters. Semiconductor shortages accounted for 200,000 units of production losses in the first quarter and 500,000 in the second quarter. Semiconductors are used more than ever before in new vehicles with electronic features such as Bluetooth connectivity and driver assist, navigation and hybrid electric systems. Stellantis achieved 1.3 billion euros in cost savings in the first half, mostly by sharing investments in new technologies and platforms, which Palmer said was a faster rate than initially forecast. It aims to achieve 80% of the targeted 5 billion in cost savings by 2024. “These synergies allow us to continue to invest in the electrification strategy, which we talk about every day,” Palmer said. Stellantis, which lags competitors in rolling out electric vehicles, plans to launch 21 fully electric or plug-in gas electric hybrid vehicles over the next two years. North American posted record profitability on global sales of Ram trucks and the strong launch of the Jeep Wrangler 4xe, which was the best-selling plug-in gas electric vehicle in the United States in the second quarter. Stellantis was the market leader in South America and second in Europe. The results were presented on a pro-forma basis, taking into account the performance of each of the carmakers as separate entities during 2020. Related video: 2021 Jeep Wrangler Rubicon 392 Inside and Out

Some 2014-19 Ram ProMasters recalled for shifter cables that could detach

The National Highway Traffic Safety Administration (NHTSA) has issued a recall for hundreds of thousands of 2014-2019 Ram ProMaster vans with a 3.6-liter engine. Campaign No. 20V036000 states that the shifter cables on these vans could disconnect from the transmission, which could lead to a variety of unsafe situations. The new recall comes after Fiat Chrysler Automobiles (FCA) has issued transmission-related recalls for several other brand products in recent years. Jeep and FCA were thrust into the spotlight in 2016, when "Star Trek" actor Anton Yelchin's shocking death was linked to what was deemed an unintuitive shifter design. FCA recalled more than 1 million vehicles with a rocker-style eight-speed ZF shifter, including Jeep Grand Cherokees, Chrysler 300s, and Dodge Chargers. The design was unclear to some, and that confusion lead to dangerous rollaways. In 2017, FCA was back in the news when it announced a transmission recall for 1.8 million Ram trucks that had a faulty interlock that could result in the transmission shifting out of park. And in 2019, FCA announced two more transmission recalls, this time for 320,000 Dodge Darts and 51,788 Fiat 500s, both of which had cable bushings that could degrade due to temperature and moisture.  FCA's unsettling pattern has bled into the new decade, as 222,207 ProMasters have been recalled for an entirely separate transmission issue that could once again lead to a rollaway risk. The NHTSA estimates approximately three percent of these vehicles could have built with a transmission gear shift cable that was kinked during production. According to the recall document, "the vehicle population was determined to include all ProMaster vehicles equipped with a 3.6-liter engine from the beginning of 2014 MY production on April 23, 2013, through September 14, 2019, when the vehicle manufacturing process was revised." If the shift cable separates, the shifter is no longer connected to the transmission. The driver, then, would not be able to shift properly, or the transmission could be in a different position than believed. If the driver thinks the vehicle is parked, but it is actually still in drive or neutral, the vehicle could unintentionally move. As a precautionary measure until the vans are checked and fixed, FCA suggests owners use the parking brake when parking these vehicles. FCA will begin notifying owners on March 13, 2020 and plans to replace the damaged parts free of charge.

FCA fibbed on sales according to internal report

Following last week's news that Fiat Chrysler Automobiles (FCA) is under investigation by the Department of Justice and Securities and Exchange Commission for allegedly fudging sales figures, a new report in Automotive News says an internal investigation at FCA uncovered misreported sales. According to the AN story, 5,000 to 6,000 vehicles from various FCA brands were reported sold by dealers, but no customers existed for those cars. FCA sales chief Reid Bigland has already put a stop to the practice. One potential reason for the practice was to maintain the company's month-to-month sales increase streak, currently at 75 months. In April, FCA added a lengthy disclaimer to its sales announcements: "FCA US reported vehicle sales represent sales of its vehicles to retail and fleet customers, as well as limited deliveries of vehicles to its officers, directors, employees and retirees. Sales from dealers to customers are reported to FCA US by dealers as sales are made on an ongoing basis through a new vehicle delivery reporting system that then compiles the reported data as of the end of each month. "Sales through dealers do not necessarily correspond to reported revenues, which are based on the sale and delivery of vehicles to the dealers. In certain limited circumstances where sales are made directly by FCA US, such sales are reported through its management reporting system." FCA did not provide comment to Automotive News. Click through for the full story and more details. Related Video: Earnings/Financials Government/Legal Chrysler Dodge Fiat Jeep RAM sales Sergio Marchionne FCA USDOJ reid bigland