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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 Dodge Challenger SRT Hellcat Redeye Widebody First Drive Review | Son of a beast

PORTLAND, Maine — They told us the Hellcat Redeye Widebody is a "Hellcat that's been possessed by a Demon." But what I'm telling myself is, Save it for the track. I hadn't even put the pedal all the way to the floor, and the world around me had warped in my peripheral vision. I peeled my skull from the headrest and contemplated the supercharger under the double-snorkel hood in front of me force-feeding air to the's 6.2-liter Hemi V8, producing a hair under 800 horsepower. With my stomach returning to its usual place, I tried to summon the patience not to roast the tires again. Relax, enjoy the drive, explore the car, and save the rest for the track. I tried to restrain myself from adding to the many strips of rubber already smeared across the hilly, meandering roads between Portland, Maine and Club Motorsports across the state line in New Hampshire. But then there's always another stop sign, and something possesses me to misbehave again as I pull away. The 2019 Dodge Challenger SRT Hellcat Redeye includes a number of borrowed features that helped the Dodge Challenger SRT Demon slap me in the back of the helmet back at Lucas Oil Raceway. It has the same displacement Hemi with a 2.7-liter supercharger providing 14.5 PSI of boost. That pressure is thanks in part to the "Power Chiller," which diverts the A/C refrigerant to cool the air intake. It offers the torque reserve system for explosive launches, as well as the strengthened driveshaft to handle it all. It won't do a wheelie, but it'll scream in your face as it hurls you straight to jail. Compared to the standard Hellcat, it gets a higher top speed of 203 miles per hour, and quarter mile times reduced by a precious tenth of a second (11.1 seconds at 131 mph for the standard Redeye, and 10.8 seconds at 131 mph for the Redeye Widebody). That said, Dodge has ensured that Demon reigns supreme in the Challenger hierarchy. For one thing, the Demon has 840 horsepower and 770 pound-feet of torque, compared to the Redeye's 797 horsepower and 707 pound-feet. The Demon's suspension is specifically tuned for the weight transfer characteristics of drag racing, and can lift its front wheels off the ground if you nail the launch with the narrow tires on it. Also, while the Redeye does have line lock to let the rear wheels spin while braking the front calipers, it doesn't get the Demon's transbrake to keep the car locked into position as throttle is applied for launch.

FCA cuts powertrain warranties to 60k miles

FCA US is cutting back the mileage of its powertrain warranty on some 2016 model year vehicles. Rather than the current five years/100,000 miles of coverage, the new amount is five years/60,000 miles for gasoline-fueled models from Chrysler, Jeep, Dodge and Ram. In March 2015, General Motors made a similar switch to five-years/60,000-miles of coverage for Chevrolet and GMC, and FCA US seems to be citing this as part of the reason for the shift. "Following changes already made by competitors, FCA US is adjusting powertrain warranty coverage for 2016 model year vehicles to be more consistent with industry practices," the automaker said in a portion of its statement. The bumper-to-bumper warranty for these vehicles is unchanged at three years/36,000 miles. According to Automotive News, Fiat's warranty is remaining at four years/50,000 miles. When it changed the mileage limit, GM also halved the number of free service visits for Chevy, GMC, and Buick to two from the previous four. The automaker claimed that the reason for the adjustments to its coverage was that a long warranty was seldom a reason for customers to buy a vehicle. Related Video: Response to Query: 2016MY Powertrain Warranty Adjustment Following changes already made by competitors, FCA US is adjusting powertrain warranty coverage for 2016 model year vehicles to be more consistent with industry practices. For 2016MY, Chrysler, Jeep®, Dodge and Ram Truck vehicles with gasoline engines will be covered by a 5 year/60,000 mile powertrain warranty. The basic coverage, also known as "bumper to bumper," remains at 3 years/36,000 miles. # # # News Source: FCA US, Automotive News - sub. req.Image Credit: Mark Ralston / AFP / Getty Images Chrysler Dodge Jeep RAM Car Buying Maintenance Ownership FCA warranty fca us powertrain