1998 Chrysler Concorde Lx on 2040-cars

Auto blog

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.

Canada bailed out GM, Chrysler without really knowing what they were getting into

The Auditor General of Canada recently issued a report that makes at least one thing clear: it doesn't know how effective Canadian government loans given to General Motors and Chrysler in 2009 were in ensuring the viability of both companies. That year, the Canadian and Ontario governments dished out $10.8 billion CAD ($9.6B US) to GM and $2.9 billion CAD ($2.6B US) to Chrysler, but hadn't yet sorted out precisely how the funds were to be used before disbursing them. This happened in spite of the fact that, according to a piece in Bloomberg, the loans weren't meant to be handed out until authorities were clear on the manufacturers' plans for reorganization. In fact, federal officials hadn't finished establishing the concessions made by all the involved parties, the pension liabilities, nor the long-term soundness of the automakers' financial positions. On top of that, apparently it didn't keep close tabs on the money after loaning it: the report says that $1B CAD should have been applied to GM Canada pension plans but was instead given to GM to use. Chrysler repaid $1.7 billion, while GM handed back $3.8 billion and Bloomberg believes the feds in Ottawa still own 110 million shares of The General, which, at the stock price as of writing, would be good for another $3.9 billion. Those were mad, bad days, though, and we're not sure what point the report serves, other than to say, "Oh, by the way...." News Source: BloombergImage Credit: Bill Pugliano / Getty Images Government/Legal Chrysler GM bailout

Hundreds of Detroit residents line up to ride in autonomous cars

DETROIT — Members of the public got the chance Friday to take a free ride in a self-driving vehicle as part of an effort to clear up confusion about the technology. Hundreds signed up for the 6-minute journey that led riders through a course set up inside a Detroit convention center. Mary Van Der Maas heard about the opportunity on the radio and decided to give it a shot. The 73-year-old retiree from Grosse Pointe, Michigan, hopped into an autonomous Chrysler Pacifica Hybrid minivan, and off she went. "I think that it's just ignorance that keeps us from wanting to do this. And once you experience it, it's marvelous," she said afterward. Daniel Schroeder, 17, said he "thought it was interesting how the car knew its route." "And then it could identify things in the road," said the high school junior from Troy, Michigan, who spent one of the days of his spring break at the demo inside Cobo Hall downtown. Rep. Debbie Dingell also rode in the driverless Pacifica, asking more than a few questions of organizers along the way. "Public confidence in autonomous vehicles has decreased, not increased, over the last year for a variety of reasons," the Democratic congresswoman said. "And people need to get to know it. They need to be hands-on. They need to see that it works." Dingell said she had asked her husband, the late John Dingell, the longest-serving member of Congress in the institution's history, to serve as an advocate for driverless cars, citing the technology's potential to benefit older Americans. "He just quite frankly didn't trust it," Debbie Dingell said. Technological hurdles and apprehension have limited attempts to deploy fully autonomous vehicles on public roadways. Uber pulled its self-driving cars out of Arizona last year after one of the ride-hailing service's autonomous cars struck and killed a woman as she crossed the street. Mary Moore of SAE International, an association of mobility engineers, said the idea behind the Detroit event is to "use the facts, use what's on the market today to explain what the capabilities are today and then also give a glimpse into what can happen in the future." The event was sponsored by SAE International as well as Partners for Automated Vehicle Education, a coalition of industry, nonprofit and academic institutions whose goal is to inform and educate the public and policymakers about automated vehicles. It runs through Sunday and is free to attend.