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Stellantis tells UK: Change Brexit deal or watch car plants close

LONDON - British car plants will close with the loss of thousands of jobs unless the Brexit deal is swiftly renegotiated, Stellantis has told the UK parliament, the latest in a series of warnings from the industry since the country left the European Union. The world's No. 3 carmaker by sales and owner of 14 brands including Vauxhall, Peugeot, Citroen and Fiat said that under the current deal it would face tariffs when exporting electric vans to Europe from next year, when tougher post-Brexit rules come into force. "If the cost of EV (electric vehicle) manufacturing in the UK becomes uncompetitive and unsustainable, operations will close," Stellantis said in a submission to a House of Commons committee examining the prospects for Britain's EV industry. Stellantis urged the government to reach an agreement with the European Union about extending the current rules on the sourcing of parts until 2027 instead of the planned 2024 change. In response, a government spokesperson said the business secretary had raised the issue with the EU. "Watch this space, because we are very focused on making sure that the UK gets EV and manufacturing capacity," Britain's finance minister Jeremy Hunt said on Wednesday at a British Chambers of Commerce event. The potentially existential problem facing Britain's car industry is closely tied to the shift to EVs. Under the trade deal agreed when Britain left the bloc, 45% of the value of an EV being sold in the European Union must come from Britain or the EU from 2024 to avoid tariffs. The problem is that a battery pack can account for up to half a new EV's cost. Batteries are also heavy and expensive to move long distances. Experts have been warning since Britain left the EU at the end of 2020 that the country would need a number of EV battery gigafactories or potentially lose a hefty chunk of its car industry. Only Japan's Nissan has a small EV battery plant in Sunderland, with a second one on the way. Cost of failure Britishvolt, a startup which received UK government support for an ambitious 3.8 billion pound ($4.80 billion) battery plant at a site in northern England, filed for administration in January after struggling to raise funds. The company was then bought by Australia's Recharge Industries, which has yet to unveil plans for the site.

Stellantis mega-merger gets approval from FCA, PSA shareholders

MILAN — Shareholders of Fiat Chrysler and PSA Peugeot decisively voted Monday to merge the U.S.-Italian and French carmakers to create worldÂ’s 4th-largest auto company. Addressing separate meetings, both PSA Peugeot CEO Carlos Tavares and Fiat Chrysler Chairman John Elkann spoke of the “historic” importance of the vote, which combines legacy car companies that helped write the industrial histories of the United States, France and Italy. Before the merger is finalized, shares in the new company, to be called Stellantis, must the launched. It will be traded in Milan, New York and Paris. The marriage of PSA Peugeot and Fiat Chrysler Automobiles is built on the promise of cost-savings in the capital-hungry industry, but what remains to be seen is if it will be able to preserve jobs and heritage brands in a global market still suffering from the pandemic. The deal will create the worldÂ’s fourth-largest carmaker, with the capacity to produce 8.7 million cars a year, behind Volkswagen, Toyota and Renault-Nissan, and create 5 billion euros in annual synergies.  “We are fully aware of the fact that together we will be stronger than individually,'' PSA CEO Carlos Tavares told a virtual gathering of eligible shareholders. “The two companies are in good health. These two companies have strong positions in their markets.” The new company will put together under one roof French mass-market carmakers Peugeot and Citroen, top-selling Jeep and Italian luxury and sports brands Maserati and Alfa Romeo - pooling companies that have helped define the industry in the United States, France and Italy. While the tie-up is billed as a merger of equals, the power advantage goes to PSA, with Tavares running Stellantis and holding the tie-breaking vote on the 11-seat board. Tavares is set to take full control of the company early this year, possibly by the end of January. Fiat Chrysler chairman John Elkann, heir to the Fiat-founding Agnelli family and Fiat ChryslerÂ’s biggest shareholder, will be the Stellantis chairman. Fiat Chrysler CEO Mike Manley will head North American operations, which is key to Tavares' long-time goal of getting a U.S. foothold for the French carmaker he has run since 2014, and the clear money-maker for Fiat Chrysler. Such a deal was long wanted by Fiat ChryslerÂ’s long-time CEO Sergio Marchionne, who had predicted the necessity of consolidation in the industry. He was unable to find a deal before his sudden death in July 2018.

2018 Jeep Wrangler Rubicon Alaska Cannonball | At the edge of the Arctic Ocean

Our man Jonathon Ramsey is driving a Jeep Wrangler Rubicon on a 14-week, 14,000-mile journey across North America. Check out his first, second, third, and fourth installments. TUKTOYAKTUK, Alaska – The picture above merely hints at the magic turn the Rubicon Alaska Cannonball took after Port Orford, Oregon. The three dramatis personae are Shelby, on the right, an Inuit and Tuktoyaktuk local with a supernova smile, sitting on the hood of her 2014 Wrangler; Jason, a top Canuck who rode his BMW up from the Lake Louise area, takes the middle; I'm on the left, wearing an Inuit parka lent me by Shelby's father, John Steen. The parka, full of snow goose down and lined with wolverine fur, is the nicest piece of winter gear I've ever put on. Any kind of winter gear. Ever. We're effectively in John Steen's back yard, the sun setting on the Arctic Ocean behind us, pingos – earth-covered mounds of ice that Tuk is known for – in the background. I took this picture at the beginning of a long night of laughs, learnin', beer, whale, Northern Lights, extraordinary kindness, more laughs, followed by a long sleep in a man cave garage. But let's pick up right after Oregon. I drove to Seattle to regroup after the Trans-America Trail and visit a Jeep dealer for an oil change, tire rotation and balance, and a thorough inspection. For reasons neither Jeep nor I could understand, the dealer wouldn't do anything more than change the oil. The Jeep rep couldn't make the dealer budge. The punchline: as I left the service department, the service writer I dealt with turned to his colleague and said, "Another happy customer." My head exploded. And then I made an appointment at a Jeep dealer in Fairbanks, Alaska to complete the work. Google said Fairbanks lies 2,145 miles from Seattle. I wanted to be in Fairbanks in three days, so I hit I-5 north determined to chalk up 715 miles. Instead of taking the Alaska-Canada Highway (the AlCan), I turned left at Prince George to take the Cassiar Mountain route, and clocked about 830 miles before pulling into a rest stop in New Hazelton. That first day would be the only one on schedule. I don't know how Canada has managed to keep this a secret, but the western provinces are shockingly gorgeous. One of Canada's tricks: California's 163,707 square miles host 39.5 million people; Canada's 3.855 million square miles house 35.2 million people.