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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.

Jeep gunning to build 250,000 Cherokees a year

Contrary to what a certain politician may have said last year about Jeep moving to China, the automaker is in fact doing the opposite, with plans to greatly increase the production capacity at its Toledo North Assembly plant in Ohio. The Detroit Free Press is reporting that there are big plans for the 2014 Jeep Cherokee and Toledo North, as a local union president has informed the newspaper that Chrysler is planning to produce around 250,000 examples of the new midsize utility per year.
To put this number into context, 250,000 units is more than what Jeep Liberty sales totaled here over the last three years combined. Even taking into consideration that the 250,000 units will be distributed beyond US borders, that's an ambitious volume figure full-stop - and that's without taking into consideration the new Cherokee's love/hate design. In its favor, though, Jeep is making remarkable inroads globally as of late, and the Cherokee's size could work well in emerging markets. To get that kind of output from Toledo's Cherokee assembly line, Chrysler will reportedly hire 1,105 new workers - that's in addition to the 200 workers already being hired to build the popular Jeep Wrangler, which is itself expected to top 220,000 units this year.

FCA recalling 400k Jeep Wranglers, 40k Fiat 500s

The Basics: Fiat Chrysler Automobiles has issued two recall. The first is for 392,464 Jeep Wranglers in the US from the 2007-2010 model years for the steering wheel airbags. The second covers 39,217 examples of the naturally aspirated 2012-2016 Fiat 500 in connection with the clutch release mechanism. The Problem: In the Wranglers' steering wheel, excessive accumulation of dust and dirt from open-air driving off-road could compromise the clockspring in the steering-wheel assembly and prevent the airbag from deploying in the event of a crash. In the case of the Fiats, the clutch travel in a small percentage of vehicles equipped with manual transmissions "may exceed design parameters" and eventually damage components. Injuries/Deaths: No injuries or accidents been reported to result from either issue. The fix: Dealers will install new back covers and column shrouds in the Jeeps and upgrade the clutch release systems in the 500s. If you own one: Expect to hear from the manufacturer to arrange service. In the case of the Fiat recall particularly, FCA "urges customers to heed the instructions on their recall notices." Related Video: Statement: Clockspring May 18, 2016 , Auburn Hills, Mich. - FCA US LLC is voluntarily recalling an estimated 392,464 older-model SUVs in the U.S. to replace their clockspring assemblies and related components. Located in a vehicle's steering wheel, a clockspring forms part of the circuit that helps control airbag function. An investigation by FCA US determined excessive exposure to dust and dirt – consistent with extensive off-road driving or driving with a vehicle's top and/or doors removed – may compromise the clockspring and eventually prevent driver-side airbag deployment in a crash. If this condition is present, the airbag warning-lamp will be illuminated. If such an event occurs, customers are advised to contact their dealers. The Company is unaware any potentially related injuries or accidents. Affected by this campaign are model-year 2007-2010 Jeep Wrangler SUVs. An additional 7,435 model-year 2011-2016 vehicles equipped with right-hand drive for special duty also are affected in the U.S. Vehicles affected outside the U.S. comprise an estimated 35,412 in Canada; 8,529 in Mexico and 62,580 outside the NAFTA region. Customers will be advised when they may schedule service, which includes installation of a new steering-wheel back cover and a steering-column shroud.