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Stellantis not looking for further mergers, including with Renault

MILAN — Stellantis Chairman John Elkann on Monday denied the carmaker was hatching merger plans, responding to press speculation about a possible French-led tie-up with rival Renault. Elkann said that the Peugeot owner, the world's third largest carmaker by sales, was focused on the execution of its long-term business plan. "There is no plan under consideration regarding merger operations with other manufacturers," said Elkann, who also heads Exor, the Agnelli family holding company that is the largest single shareholder in Stellantis. After abandoning the Russian market, at the time its second largest after France, and reducing the scope of its global cooperation with Nissan, Renault has been seen as a potential M&A target. Speculation intensified after an electric vehicle market slowdown forced it last week to cancel IPO plans for its EV and software unit Ampere. Its market cap remains stubbornly low at little over 10 billion euros ($10.8 billion) despite a financial recovery over the past few years. Stellantis, the product of a 2021 merger between France's PSA and Fiat Chrysler and one of the most profitable groups in the industry, has a market cap of more than 85 billion euros when unlisted shares are factored in. It has a 14 brand portfolio also including Citroen, Jeep, Opel and Alfa Romeo. NEWSPAPER REPORT Italian daily Il Messaggero had said on Sunday that the French government, which is Renault's largest shareholder and also has a stake in Stellantis, was studying plans for a merger between the two groups. A spokeswoman for Renault said on Monday the group did not comment on rumors. France's Finance Ministry had declined to comment on Sunday. Stellantis has crossed swords with the Italian government, which has accused it of acting against the national interest on occasions. Industry Minister Adolfo Urso last week raised the prospect of the Italian government taking a stake in Stellantis to help to balance the French influence. Renault shares pared gains after Elkann's comments to stand 1.2% higher by 1220 GMT, having initially risen more than 4%. Stellantis CEO Carlos Tavares, a Portuguese-national, last week said in an interview with Bloomberg that the group was "ready for any kind of consolidation" and that its job was to make sure that it would be "one of the winners". Analysts, however, question the rationale of a Stellantis-Renault merger, which would also expand the group's excess capacity in Europe.

All hail the Hellephant, Mopar's 1,000-horsepower crate engine

It's shocking to say this, but the all-powerful Dodge Demon looks weak now that Mopar has unleashed the Hellephant. This crate motor makes 1,000 horsepower and 950 pound-feet of torque, and its name is a combination of the nickname for the old 426-cubic-inch Hemi V8 and, obviously, the Hellcat. This monster is a 426-cubic-inch version of the current third-generation Hemi V8 topped by a supercharger similar to what the Hellcat line packs. Everything is cranked up to — or perhaps, past — 11. The engine block is made of aluminum and weighs 100 pounds less than the equivalent iron block. All of the internals are forged. The stroke and bore have been increased. The supercharger produces 15 pounds of boost and displaces 3 liters; more than the 2.7-liter blower on the Demon and the 2.4-liter blower on the Hellcat. And as big and powerful as it is, it will still rev to 7,000 rpm. It's a thoroughly monstrous motor, but shockingly, it won't be that difficult to live with. For one thing, Mopar will offer a complete kit to get the engine up and running, including an engine computer, wiring harness and drive-by-wire throttle. It also runs on 93-octane pump gas. That's especially amazing considering the Demon engine "only" makes 840 horsepower, and that's on race gas with 100+ octane fuel. It also has us wondering what the Hellephant could make on racing fuel. The Mopar folks did say that there's room to add more power. Pricing wasn't announced for the Hellephant engine. The Hellcat crate engine retails at $19,350 directly from Mopar, so it's safe to assume that the Hellephant will go for more. The installation kit with the computer and harness will be an extra charge of likely over $2,000, based on the Hellcat kit. The engine and the kit will be available in the first quarter of 2019. Related Video: Featured Gallery Hellephant Crate Engine SEMA Show Chrysler Dodge Jeep RAM Performance dodge demon hellephant

Chrysler banks $507 million in Q2, trims 2013 earnings forecast

Chrysler has some good news and some bad news. First, profits were up 16 percent over the second quarter of 2012, bringing the Auburn Hills, Michigan-based manufacturer $507 million on the back of strong demand for trucks and SUVs (a recurring theme this quarter, particularly in the US). Q2 revenue was up as well, from $16.8 billion in 2012 to $18 billion in 2013. The bad news is that the Pentastar's overall earnings forecast for net income in 2013 has been trimmed from $2.2 billion to between $1.7 and $2.2 billion, according to Automotive News.
In addition to the adjusted net income forecast, Chrysler tweaked its operating profit from $3.8 billion to between $3.3 and $3.8 billion. This has gone largely unexplained by Chrysler, perhaps hoping the news of a three-percent increase in its transaction prices for Q2 will allow it to sweep this adjustment under the rug.
The star of the show for Chrysler has been its US sales, which saw a 10-percent jump, both bettering the industry average of eight percent and improving over the same stretch of 2012. As with the increase in transaction prices, Chrysler has the new Ram pickup and Jeep Grand Cherokee to thank. Perhaps most worrying from this report, though, is that every brand in the automaker's stable saw an increase in sales... except for the Chrysler brand itself.