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Stellantis won't race to split electric vehicles from fossil fuel cars

MILAN - Stellantis is not considering splitting its electric vehicle (EV) business from its legacy combustion engine operation, its finance chief said on Thursday, as the carmaker presented above-expectation revenue data for the first quarter. Chief Financial Officer Richard Palmer told analysts he did not see huge benefits in the kind of separations pursued by rivals such as France's Renault and U.S. Ford. "We need to manage the company and the assets we have through this transition," he said. "There are benefits to having the cash flow being generated by the internal combustion business for the investments we need to make." Palmer said the group, formed by a merger last year of Fiat Chrysler and Peugeot maker PSA, was not averse to considering adjusting its structure "but we aren't anticipating any big changes." Palmer's comments came after the world's fourth largest carmaker said its net revenue rose 12% to 41.5 billion euros ($44.1 billion) in the January-March period, as strong pricing and the type of vehicles sold helped offset the impact of the semiconductor shortage on volumes. That topped analyst expectations of 36.9 billion euros, according to a Reuters poll. Milan-listed shares were up 0.5% by 1415 GMT, in line with Italy's blue-chip index. The impact of the chip crunch was evident in the decline in shipment figures which fell 12% in the quarter to 1.374 million vehicles. It was a similar story for Germany's BMW which posted higher revenues on Thursday and a decline in car sales. Riding the Recovery Stellantis, whose brands also include Citroen, Jeep and Maserati, confirmed its 2022 forecasts for a double-digit adjusted operating income margin, after 11.8% last year, and a positive cash-flow despite supply and inflationary headwinds. Morgan Stanley analysts said after the results that Stellantis had better management than many peers and benefited from its significant exposure to a stronger U.S. economy and a European recovery from the COVID-19 pandemic. They also said it was less affected by a slowing Chinese economy. Palmer said it was important for the group to maintain double-digit margins and keep delivering positive cash flows. "A 12% increase in revenue with a 12% decrease in volumes indicates a very strong performance on price and mix, which augurs well for our margin performance," he said. He said semiconductor supply problems were expected to ease this year with continued improvements in 2023.

Fiat Chrysler recalls 320,000 Dodge Darts that could roll away

WASHINGTON — Fiat Chrysler Automobiles NV said Friday it is recalling more than 320,000 Dodge Dart compact cars in North America that could roll away because of a defective part that could allow the shift cable to detach from the transmission. The Italian-American automaker said the recall covers 2013 through 2016 model year automatic transmission Dart cars and that the defect could prevent drivers from shifting vehicles into park. The company said it is not aware of any crashes or injuries related to the issue but has several thousand reports of related repairs to vehicles. The company said a cable bushing may degrade after prolonged exposure to high ambient heat and humidity. The company said owners should make sure they shut off the vehicle and engage the parking brake. Fiat Chrysler will replace the transmission side shifter cable bushing, the company said. The company did not said when repairs will be ready. The recall covers about 298,000 U.S. vehicles, 20,117 in Canada, 3,400 in Mexico and about 900 outside of North America. Fiat Chrysler ended production of the Dart in 2016. FCA has had a number of recalls over shifter problems in recent years. Some 1.5 million Ram trucks were recalled in 2017 for a shifter problem, and another 228,000 were recalled in 2018. And 1.1 million Chrysler, Dodge and Jeep models were recalled in 2016 over what the National Highway Traffic Safety Administration called an "unintuitive" shifter design that caused drivers to exit their vehicles thinking they were in Park when in reality they were still in Drive or Reverse. The shifter in Dodge Chargers, Chrysler 300s and Jeep Grand Cherokees was implicated in more than 120 accidents, more than 40 injuries, and in the death of "Star Trek" actor Anton Yelchin.

FCA recalling Chrysler and Dodge minivans, Dodge Nitro SUVs for faulty airbag covers

Fiat Chrysler Automobiles said on Friday it would recall about 925,239 of its older model vehicles in the United States to replace airbag covers on their steering wheels after 14 potentially related injuries. The recall is limited to 2007-2011 Dodge Nitro SUVs, 2008-2010 Chrysler Town & Country and Dodge Grand Caravan minivans, the Italian-American automaker said. The move follows an FCA investigation that found these vehicles were equipped with certain clips that may loosen and disengage over time, and in case of a driver-side airbag deployment the clips could act as projectiles. Fiat Chrysler said none of the potential injuries involved occupants of front-passenger or rear seats and that the airbags were not supplied by Takata. Reporting by Sanjana Shivdas in Bengaluru; Editing by Amy Caren Daniel. Related Video:   Recalls Chrysler Dodge Minivan/Van SUV