2005 Chrysler Van Limited on 2040-cars

Auto blog

Automakers are getting nervous about Europe's economy

Carmakers BMW and Stellantis on Thursday expressed concerns about Europe's economic outlook, joining a chorus of retailers and others in warning of waning consumer confidence on the continent and hitting their shares. "Obviously the macro(-economic situation) in Europe is more challenging, which gives me pause, personally," Stellantis chief financial officer Richard Palmer said on a conference call with analysts. "If there was anywhere where I was more concerned, it would be Europe than anywhere else really based on the macro." This follows a dire assessment of consumer sentiment in Europe from the likes of consumer goods company Unilever and news of lower spending by Europeans from Amazon. Like other major auto companies, Stellantis and BMW have been hit by supply chain disruptions stemming from the global coronavirus pandemic that have curtailed car production. They have also benefited from strong consumer demand amid low vehicle supply, allowing them to raise prices and keep them high even as the semiconductor shortage shows signs of easing. BMW posted a 35.3% jump in third-quarter revenue despite a small drop in vehicle sales. Stellantis said its revenue rose 29% on the back of a 13% increase in vehicle sales as more semiconductors became available. The concern among analysts has been that demand may falter, just as carmakers get their hands on the supplies they need, undermining pricing and hurting profits. But this week Ferrari said it was confident about its prospects for this year and 2023 as demand for its luxury cars, as well its pricing power, remained strong. Both BMW and Stellantis said on Thursday they had vehicle order books that stretched into the second quarter of 2023. But BMW's chief financial officer Nicolas Peter said high inflation and rising interest rates could hit buyers' wallets. "This is causing conditions for consumers to deteriorate, which will affect their behaviour in the coming months," he said. "We therefore continue to expect our higher-than-average order books to normalise, especially in Europe." He added customers had been unhappy about the wait for new cars, so "a slight reduction (in orders) would not be negative." Palmer said Stellantis was "ready for any softness in demand" but in the short term had been affected by a shortage of drivers to deliver its cars to dealers. "At the moment, we can't build enough cars," he said.

GM, Chrysler bailouts saved 2.6 million jobs

The Center for Automotive Research (CAR) has been studying the effects of the General Motors and Chrysler bailouts in 2009. Now that the US Treasury has officially sold off the rest of its stake in GM (and Chrysler has already paid back its loan), CAR has released its study on the effects of the bailout with this concluding note: "CAR is confident that in the years ahead, this peacetime intervention in the private sector by the US government will be seen as one of the most successful in US economic history."
Big words, for sure, but there's plenty of evidence to back up the claim. Bailing out GM alone saved 1.2-million jobs. If both GM and Chrysler hadn't been bailed out, US employment would have been reduced by 2.631-million jobs in 2009 and another 1.519-million jobs in 2010, according to the study. If both automakers were allowed to fail, personal income in the US would have decreased by $173.5 billion in 2009 and $110.9 billion in 2010. Instead, the study found that $284.4 billion of personal income was saved by the bailouts.

Mopar Dodge Challenger special edition celebrates a mod decade

Despite the current Dodge Challenger hitting the age of 11 this year, it continues to be a top seller for the brand. One of the reasons for its popularity is its customizability. FCA acknowledges this with the just-revealed, limited-edition Mopar 2019 Dodge Challenger celebrating its factory-backed performance parts and accessories straight from the its own in-house parts division. For 10 years, Challenger owners have benefited from upgrades directly from Chrysler’s Mopar division. This has been a big deal because tuning a car often required aftermarket parts, which could jeopardize factory warranties. But with upgrades directly from original equipment manufacturers, such a risk was eliminated. “Over the last decade, weÂ’ve customized an impressive group of vehicles with exclusive Mopar performance parts and accessories that our enthusiast customers crave,” said Mark Bosanac, head of Mopar Service in a statement. “This year weÂ’re commemorating our tenth Mopar build with another unique and collectible Dodge Challenger, which continues to be the modern muscle car every bit as beloved today as the first-generation vehicle was 50 years ago.” The 2019 Mopar Dodge Challenger starts life as R/T Scat Pack model. Under the hood sits a 392-cubic inch (6.4-liter) Hemi V-8 with 485 horsepower and 475 pound-feet of torque with the choice of a six-speed manual or an eight-speed automatic. But Mopar sweetens the deal by adding a performance cold-air intake, strut tower braces to improve structural rigidity and handling, as well as strut caps and braces painted in silver for eye candy whenever the hood is popped. ItÂ’s only available in two hues, Pitch Black or White Knuckle, and comes with a variety of bespoke interior and exterior upgrades. They include special Mopar Shakedown graphics and blue striping from the front fascia all the way back to the rear decklid spoiler. Completing the look is a set of 20x9-inch forged aluminum wheels wrapped in Goodyear P245/45ZR20 performance tires and the optional shaker hood package made standard. Sales commence next month with a starting price of $45,835.