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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.

Fiat Chrysler to pay $800M in Jeep, Ram emissions cheating case

WASHINGTON — Fiat Chrysler Automobiles NV has agreed to a settlement worth about $800 million to resolve claims from the U.S. Justice Department and state of California that it used illegal software that produced false results on diesel-emissions tests, but still faces an ongoing criminal probe. The hefty penalty is the latest fallout from the U.S. government's stepped-up enforcement of vehicle emissions rules after Volkswagen AG admitted in September 2015 to intentionally evading emissions rules. The Fiat Chrysler settlement includes $311 million in total civil penalties to U.S. and California regulators, up to $280 million to resolve claims from diesel owners, and extended warranties worth $105 million. It covers 104,000 Fiat Chrysler 2014-16 Ram 1500 and Jeep Grand Cherokee diesels, the Justice Department said. Regulators said Fiat Chrysler used "defeat devices" to cheat emissions tests in real-world driving. Fiat Chrysler said in a statement that "the settlements do not change the Company's position that it did not engage in any deliberate scheme to install defeat devices to cheat emissions tests." The company did not admit liability. "You wouldn't pay $311 million total dollars to the federal government in civil penalties if there were not a serious problem," U.S. assistant attorney general Jeff Clark told a news conference. The settlement also includes $72.5 million for state civil penalties, and $33.5 million in payments to California to offset excess emissions and consumer claims. German auto supplier Robert Bosch GmbH, which provided the emissions control software for the vehicles, also agreed to pay $27.5 million to resolve claims from diesel owners. Owners will receive an average of $2,800 to obtain software updates as part of the emissions recall, Fiat Chrysler said. Elizabeth Cabraser, a lawyer for the owners, said the "substantial cash compensation" will ensure that consumers get the recall fix. Bosch, which also provided diesel emissions software to Volkswagen, also agreed to pay $103.5 million to settle claims with 47 U.S. states that said the supplier "enabled" the cheating and should have known its customers would use the software improperly, the New York Attorney General's Office said.

2023 Ram TRX priced at $81,150

The relentless rise of the MSRP on the Ram TRX has slowed. In January of this year, the super truck's base price had climbed to $74,085 after the $1,695 destination charge. Six weeks later, it jumped up $2,295 and the destination charge rose $100, taking matters to $76,880. Since then February, Ram pushed the mark up another $1,910 to $80,585 after destination. Mopar Insiders sourced the pricing sheet for the 2023 Ram TRX and reports next year's truck is only going to be $565 more dear, costing $81,150. MI didn't note any substantive changes to the pickup, which wouldn't be surprising in just its third year on the market. There are other price bumps among the options, however. Diamond Black Crystal will hold over as the only monotone available and cost the same $100 as now. But the 2022 TRX offers six two-tone hues that, according to this early list, will drop to five. Granite Crystal Metallic will go up from $200 to $450; Billet Silver Metallic increases from $200 to $250, and Hydro Blue Pearl climbs from $100 to $350. The other two, Flame Red Clear and Bright White Clear, will cost $250, same as now. On the 2022 rig, however, choosing those latter two-tone paint jobs automatically adds a little more than $10,000 in options with the TRX Level 2 Equipment Group. The Ignition Orange two-tone exterior isn't included on the list MI received, the end of the $9,200 Ignition Edition Package that also required the Level 2 group and so added nearly $20,000 to the price. The $100,080 Sandblast Edition is the special trim for next year. Big-ticket prices like the Equipment Groups and a la carte options such as the dual-pane sunroof, 19-speaker Harmon Kardon audio system, and surround-view camera system don't appear to have budged. We think that's called "small favors." The reptile's heart hasn't changed either, that continuing to be the supercharged 6.2-liter Hellcat V8 with 702 horsepower and 650 pound-feet of torque. We think that's called, "If it ain't broke." The 2023 TRX isn't on the Ram configurator as of writing, but dealers are ready to take orders. Related video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.