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Stellantis moves to set up its own lending unit

Stellantis is buying Houston-based auto lender First Investors Financial Services Group to set up its own finance arm in the U.S., a move that should support sales and eventually boost profit. The only major traditional automaker in the U.S. without its own finance company agreed to pay $285 million to a group of investors led by Gallatin Point Capital and Jacobs Asset Management, according to a statement. The transaction is expected to close by year-end. Stellantis was formed via the merger between Fiat Chrysler and PSA Group early this year. Carlos Tavares, the PSA boss who became the combined company’s chief executive officer, called the deal to acquire First Investors a milestone that will increase earnings and enhance customer loyalty. “Direct ownership of a finance company in the U.S. is a white-space opportunity which will allow Stellantis to provide our customers and dealers a complete range of financing options,” Tavares said Wednesday in the statement.  Having an in-house finance company has helped rivals General Motors Co. and Ford Motor Co. pad profits, especially during the global semiconductor shortage that has limited production and crimped sales. GM bought subprime lender AmeriCredit Corp. in 2010 and renamed it GM Financial. The operation generated a $2.76 billion profit in the first half -- roughly a third of the companyÂ’s adjusted earnings before interest and taxes. Trouble for Santander? The First Investors acquisition could spell trouble for Chrysler Capital, the operation that Santander Consumer USA Holdings Inc. and Chrysler set up in 2013 before the U.S. automaker completed its merger with Fiat. In a statement, Santander Consumer said itÂ’s committed to supporting Stellantis through the term of their existing agreement and its transition. Santander Consumer will also have “ongoing conversations with Stellantis about long-term mutually beneficial opportunities beyond 2023,” the company said, adding that its consumer business remains strong and has “delivered solid results for our shareholders.” This, along with support from its parent company, will allow the lender to “pursue additional opportunities as they arise.” The lenderÂ’s U.S.-listed stock fell 1.5% in New York trading Wednesday after Bloomberg reported Stellantis was preparing to announce a new finance partner. Stellantis shares rose as much as 1.3% in Paris trading Thursday.

Dodge PHEV due in 2022 expected to be the Hornet

A relatively new saga involving hornets in the Pacific Northwest begins with the adjective "murder" and gets worse from there. A relatively dated saga involving hornets in the automotive industry begins with the name "Dodge" and is — or could be — much friendlier to plant and animal life. Last year, former Dodge parent company Fiat Chrysler trademarked the term "Dodge Hornet" for the first time. Two months ago, an Italian publication credited its sources with news that current parent company Stellantis will create a Dodge version of the Alfa Romeo Tonale (pictured) and call it the Hornet. Now, Mopar Insiders picked up on Stellantis CEO Carlos Tavares sharing a roadmap of the 20 PHEV and battery-electric vehicles coming our way in the next two years between the company's 14 brands. Dodge merits a single PHEV entry in the 2022 column. MI says this will be the Hornet.      As FCA recast its U.S. lineups to give Dodge more focus and give Chrysler a reason to exist, Dodge lost the Caliber, Nitro, and Journey. The way this new report is put, and as we mused a year ago, the coming Hornet will replace the Journey — a space Dodge could do well to return to. Never given much love by the parent company, the Journey turned into a hoary old thing over its 13 years on the market, but sold in remarkable numbers to the end. According to Car Sales Base, sales increased nearly every year for the first nine years of the Journey's life. Even during the sales decline over the last four years of its production life, the Journey found 298,594 homes in the U.S. More than 12,000 zombie units have been moved off lots this year. A Dodge Hornet likely wouldn't offer the Wal-Mart rollback pricing the Journey was known for. Also, the Hornet would pack in just two rows, whereas the Journey offered three. Nevertheless, we're now talking about three vehicles sharing major internal organs; the Alfa Romeo Tonale leans heavily on the Jeep Compass platform and internals, and the Dodge is expected to be built at the same Naples, Italy plant as the Alfa Romeo. The economies of scale are there. As for powertrain, we know there's a Tonale PHEV coming, but it's thought to get its plug-in system from the Jeep Renegade 4xe that's based around the smaller 1.3-liter four-cylinder with either 190 or 240 total horsepower instead of the larger 2.0-liter engine in the Wrangler 4xe.

Chrysler expecting up to 200,000 9-speed transmissions for 3 models this year

Striving for improved fuel economy, we already knew that Chrysler will begin using a nine-speed automatic transmission in some of its new products this year, but what we haven't known is that volume at which this gearbox will be used. According to Bloomberg, Chrysler CEO Sergio Marchionne has been quoted as saying that the automaker expects to sell close to 200,000 units equipped with this new transmission in 2013. Those gear-rich trannies will be spread out across three models, consisting of the redesigned Chrysler 200, the still-unnamed Jeep Liberty replacement and the Dodge Dart.
This transmission should play a pivotal role in making Chrysler vehicles more competitive in their respective segments. Just for comparison, one of the Dart's key competitors, the Toyota Corolla, still uses a four-speed automatic, and a previous report indicates that the next-generation 200 could get up to 38 miles per gallon on the highway, which is better than most non-hybrid midsize sedans on the market. Marchionne says that the new Jeep model is expected during the second quarter of this year, but there is no word as to when the new 200 or nine-speed Dart will debut, but clearly Dodge would like to have the transmission in its compact yesterday. As for that volume figure, it definitely doesn't seem out of reach since the Dart, Liberty and 200 combined for a total of more than 225,000 units in 2012.
How many more gears can we expect in future cars? Probably not many more, since the CEO of transmission-builder ZF, Stefan Sommer, previously stated that nine speeds was the "natural limit" for transmissions.