2025 Ram 1500 Laramie on 2040-cars

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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.

2020 Ram 1500 EcoDiesel fuel economy numbers are right in the zone

Every new truck spec gets it own awards show nowadays. In this next envelope we have EPA fuel economy ratings for the 2020 Ram 1500 EcoDiesel — drumroll, please: 22 miles per gallon in the city, 32 mpg highway, 26 mpg combined for the 4x2 trim; 21 mpg city, 29 mpg highway, 24 mpg combined for the 4x4. As one would expect, the numbers plop the EcoDiesel in the middle of the pot with light-duty diesel versions of the 2020 Chevrolet Silverado 1500 and 2019 Ford F-150. In 4x2 guise, city mileage for the EcoDiesel ties the F-150 and is one mpg short of the Silverado, highway mileage rates two mpg more than the F-150 and one mpg short of the Silverado. In 4x4 trim, EcoDiesel city mpg is one mpg more than the F-150 and two mpg short of the Silverado, EcoDiesel highway number is four mpg more than the F-150 and ties the Silverado.    Of course, Ram would also like you to know that when it comes to output and carrying, the third-generation oil-burner tops the half-ton trio with 480 pound-feet of torque, 20 lb-ft more than the Silverado, and posts the highest tow rating at 12,560 pounds. Buyers who opt for the 4x2 diesel Ram and the 33-gallon tank will be able to travel the furthest, too, going beyond 1,000 miles before the fumes give out. Every trim gets the new EcoDiesel option for 2020, including the Ram Rebel for the first time. The 3.0-liter V6 is a $4,995 option, making it either $3,000 or $3,300 more than the 5.7-liter Hemi V8 eTorque trim depending. The EcoDiesel price ladder starts with the Tradesman Quad Cab at $36,890 plus a $1,695 destination charge, for $38,585 total. The 2019 Ram 1500 Classic will continue offering the second-generation 3.0-liter EcoDiesel, starting at the unchanged price of $40,835 for the Tradesman Crew Cab 4x2.

Fiat Chrysler dumped 40,000 unordered vehicles on dealers

In a move that echoes recent history, Fiat Chrysler has been making more cars and trucks than dealers in the U.S. are willing to accept, with Bloomberg reporting that at one point the automaker had built up a glut of around 40,000 unordered vehicles. That’s led some dealers to accuse FCA of reviving the dreaded “sales bank” accounting practice of obscuring inventory to improve the balance sheet. The company reportedly began building up its inventory of unordered cars this summer despite an industrywide slowdown in sales and an eagerness by some dealers to thin their inventories because rising interest rates are making it more expensive to hold unsold cars. The inventory build-up also coincided with Fiat ChryslerÂ’s efforts to find a merger partner, first with Renault, which fell through, then last monthÂ’s announcement that it will merge with FranceÂ’s PSA Group. FCA denies any such scheme and tells Bloomberg the rising inventory is down to a new predictive analytics system designed to better square supply with demand from dealers that is helping the company save money and narrow the numbers of unsold vehicles. The company recently agreed to pay a $40 million civil penalty to the U.S. Securities and Exchange Commission to settle a complaint that it paid dealers to report fake sales figures over a span of five years. While no one is suggesting that FCA is in dire financial straits — the company saw higher than expected earnings in the third quarter and record profits in North America — the practice has strong historical precedent by Chrysler, which built up bloated inventories in the run-up to its two federal bailouts, in 1980 and 2009. It was also common at GM and Ford during the 2000s, when all three Detroit automakers struggled with excess manufacturing capacity and plummeting sales in the lead-up to the Great Recession. Back in 2012, CFO Magazine wrote about a report that explained automakersÂ’ rationale for the practice and how it works: Say fixed costs for a given factory are $100, and that the factory can make 50 cars. Consumers, however, demand only 10. Under absorption costing, if the company makes all 50 cars, its cost-per-car is $2. If it makes only up to demand, or 10 cars, the cost-per-car is $10. Although each car adds variable costs for steel and other parts, if those costs are low, the company still has an incentive to make more cars to keep the cost-per-car down.