2016 Jeep Wrangler Unlimited Sahara on 2040-cars

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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.

Star Trek actor's death may be linked to Jeep shifter issue

The tragic death of Anton Yelchin on Sunday may have resulted from a known design flaw with his Jeep Grand Cherokee. The 27-year-old actor, best known for playing Pavel Chekov in the latest Star Trek movies, was reportedly crushed when his vehicle rolled backwards down the driveway in front of his house, pinning him against a brick pillar and metal gate. The 2014-15 Grand Cherokee was one of three models (alongside the Dodge Charger and Chrysler 300 sedans) that Fiat Chrysler recalled this past April due to roll-away risk. The vehicle was equipped with an unintuitive "e-shifter" that didn't deliver the usual tactile response of being shifted into position, leading to numerous drivers exiting the vehicle mistakenly thinking that it was in Park. The problem was reported to have resulted in 41 injuries – and now possibly Yelchin's death as well. The manufacturer stated at the time of the recall that "the vehicles involved in these events were inspected and no evidence of equipment failure was found." It determined that while the vehicle warned occupants if the driver's-side door was opened while the engine was running and the transmission not in the Park position, such measures may have been insufficient. Its remedy for the problem involved updating the vehicle software to better warn drivers in such an event, and changing the design for subsequent models. "Regarding the recall," an FCA spokesman told Autoblog, "I can confirm notices were mailed to affected customers. Included in those notices were tip sheets describing proper operation of the shifter. This supplemental information echoes the instructions in the owner's manual." Yelchin was born March 11, 1989, in St. Petersburg, Russia. His parents were a figure-skating pair, and defected to the United States when Anton was just six months old. In the prime of his career, Yelchin had several films currently in development, including Star Trek Beyond, set to reach theaters next month. His body was reportedly discovered by friends when he didn't show up for rehearsal. Related Video:

FCA spends $1.5 billion to retool plant for Ram production

Fiat Chrysler Automobiles (FCA) is planning to invest $1.48 billion to retool its Sterling Heights Assembly plant in metro Detroit to build the next generation of the Ram 1500. The investment will allow the assembly plant to go from unibody to body-on-frame construction. FCA also confirmed that production of the Chrysler 200 will end in December in order for the plant to be altered. As previously reported, FCA is looking to move production of the 1500 from its current assembly plant in Warren to the Sterling Heights Assembly plant (both are in Michigan). While FCA has not released any official plans for the Warren Truck Assembly Plant, Automotive News reports that the plant will be retooled to manufacture the Jeep Wagoneer and Grand Wagoneer SUVs. Earlier this month, FCA announced plans to invest $1.05 billion to retool the Jeep Wrangler factory. FCA's current investment plans are part of the automaker's push to put competitive products on the road. Related Video: News Source: FCA, Automotive NewsImage Credit: FCA Plants/Manufacturing Chrysler Jeep RAM SUV Sedan