2021 Ram 3500 Tradesman on 2040-cars

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Stellantis is official: FCA and PSA merger finally sealed

MILAN — Fiat Chrysler and PSA sealed their long-awaited merger on Saturday to create Stellantis, the world's fourth-largest auto group with deep enough pockets to fund the shift to electric driving and take on bigger rivals Toyota and Volkswagen. It took over a year for the Italian-American and French automakers to finalize the $52 billion deal, during which the global economy was upended by the COVID-19 pandemic. They first announced plans to merge in October 2019, to create a group with annual sales of around 8.1 million vehicles. "The merger between Peugeot S.A. and Fiat Chrysler Automobiles N.V. that will lead the path to the creation of Stellantis N.V. became effective today," the two automakers said in a statement. Shares in Stellantis, which will be headed by current PSA Chief Executive Carlos Tavares, will start trading in Milan and Paris on Monday, and in New York on Tuesday. Now analysts and investors are turning their focus to how Tavares plans to address the huge challenges facing the group – from excess production capacity to a woeful performance in China. Tavares will hold his first press conference as Stellantis CEO on Tuesday, after ringing NYSE's bell with Chairman John Elkann. FCA and PSA have said Stellantis can cut annual costs by over 5 billion euros ($6.1 billion) without plant closures, and investors will be keen for more details on how it will do this. Marco Santino, a partner at consultants Oliver Wyman, said he expected Tavares to disclose the outlines of his action plan soon, but without divulging too many details at first. "He has proven to be the kind of person who prefers action to words, so I don't think he will make loud statements or try to over-sell targets," he said. Like all global automakers, Stellantis needs to invest billions in the years ahead to transform its vehicle range for the electric era. But other pressing tasks loom, including reviving the group's lagging fortunes in China, rationalizing its huge global empire and addressing massive overcapacity. "It will be a step by step process, also to allow the market to better appreciate every single move. I don't think we will have all the details before one year," Santino said.

Jeep and Ram could be spun off from FCA, says Marchionne

Jeep is surely the biggest single feather left in the cap of the Fiat Chrysler Automobiles portfolio. Under Sergio Marchionne's leadership, Jeep went from fewer than 500,000 annual sales in 2008 to 1.4 million in 2016, and is on track for 2 million by 2018. Add in the brand's legacy, status as one of the most recognizable nameplates in the world, and rabid fan base, and Jeep has extraordinary monetary value to its parent company. Investors and analysts have certainly noticed Jeep's inherent value. According to The Detroit Free Press, Morgan Stanley's Adam Jonas asked FCA chief Sergio Marchionne if he would ever consider spinning Jeep and Ram, FCA's dedicated truck brand, into a separate corporate entity, and he responded with a simple "Yes." Jonas estimated Jeep's worth in January of this year at $22 billion. Ram was valued at $11.2 billion. Marchionne has a history of spinning off brands while keeping them part of FCA's corporate umbrella. The most noteworthy example of this value maximization was with Ferrari, which now trades on the New York Stock Exchange and rakes in $3.4 billion in annual revenue and close to $435 million in net income, reports the Free Press. Marchionne still serves as chairman and CEO of Ferrari, and Fiat heir John Elkann owns 22 percent of the Italian marque's shares. Even if the offloading of Jeep and Ram into a separate entity would amount to little more than a profit-driven ownership change on paper, it would be huge news to the brands' loyal fanbases. In any case, such a move would likely take years to actually happen and probably wouldn't mean much at all to the products that Jeep and Ram produce. In other words, Jeep fans can keep the pitchforks in the shed ... for now. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Ram recalling 131,000 heavy duty trucks over fire hazard

For a little over a year, Ram has been investigating an issue with a number of heavy duty trucks from the 2021 model year that have experienced engine bay fires. For some reason, even when the engine is off, the solid-state intake heater relay in Ram trucks fitted with the 6.7-liter Cummins turbodiesel can suffer a short and catch fire. In March of this year, the company planned to recall about 20,000 vehicles in the U.S. and Canada when it thought the problem was limited to trucks with unprotected relays. In May, Ram discovered the issue occurring even in trucks with protected relays. Now Ram is preparing to recall 131,177 trucks from the 2021 and 2022 model years. The models in question are:  2021-2022 Ram 2500 (DJ) pickups built between August 3, 2020 and October 8, 2021 (67,597 units) 2021-2022 Ram 3500 (D2) pickups built between August 5, 2020 and October 8, 2021 (39,324 units) 2021-2022 Ram 3500 Chassis Cabs (DD) built between August 12, 2020 and October 7, 2021 (7,317 units) 2021-2022 Ram 4500/5500 (DP) Chassis Cabs built between November 13, 2020 and October 8, 2021 (16,939 units) Ram says it is aware of about 10 engine bay fires, but no accidents nor injuries due to the fires. The bigger issue for now is that Fiat Chrysler engineers working with the component supplier still haven't been able to find a root cause for the fires. Until they can nail down a cause, Ram recommends parking affected models outside, away from structures and other vehicles.   The pickup maker expects to begin mailing letters to owners on December 3, the same day it informs dealers of the fix for the issue. Owners with questions can call the Stellantis customer service line at 1-800-853-1403, the automaker's internal code for the recall being Y76. Or they can contact the National Highway Traffic Safety Administration (NHTSA) Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153). Or go to www.nhtsa.gov. The NHTSA campaign number is 21V798 Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.