Blaming the global shortage of semiconductors and related supply chain challenges, Stellantis has announced another round of cuts at one of its factories. According to a report in the Detroit News, about 400 workers have been informed of an ‘employee reduction’ that will take effect early next calendar year.
A captive lending arm can be a major source of profit for automakers. After all, keeping that paper in-house instead of farming it out to a third party permits some of that sweet interest-driven revenue rolling on a monthly recurring basis. Why else did most of us, for many years during GMAC’s heyday, refer to General Motors as a finance company which just happened to sell cars?
Following several years of shacking up with Santander in order to offer financing for their customers, Stellantis has bought F1 Holdings Corp., an outfit that is the parent of Texas-based First Investors Financial Services Group. Now they’ve spent $285 million in this all-cash transaction, Stellantis is no longer the only major automaker in America without a captive finance arm.
Ram has been subjected to numerous investigations over the last few years, especially in regard to its heavy-duty diesel pickups. We can throw another item onto the list, as the manufacturer has opted to recall 131,177 HD trucks from the 2021 and 2022 model year.
While we recently covered an investigation launched by the National Highway Traffic Safety Administration (NHTSA) to assess whether reports citing that late-model HD pickups using the 6.7-liter Cummins turbo diesel had motive issues, the current recall appears unrelated. The former investigation is centered around slightly older trucks and a loss of motive power presumed to be the result of defective fuel pumps that could warrant a recall. This issue is a full-blown recall surrounding a potential fire risk originating from an issue with the solid-state heater intake grid relay.
The National Highway Traffic Safety Administration has opened an investigation into nearly 605,000 heavy-duty Ram trucks. A report from the regulator’s Office of Defects Investigation has tabulated 22 complaints from the 2019 and 2020 model years, all of which use 6.7-liter Cummins turbo diesel engines, spurring the NHTSA to launch a formal investigation. Complaints revolve around loss of motive power, with most incidents occurring above 25 mph and resulting in the “permanent disablement of the vehicle.”
While the public was not made aware of the investigation until Monday, the agency launched its probe last Thursday on October 14th. The goal will be to establish how widespread the presumed defect is, what exactly caused it, and any potential safety hazards relating to the issue. Some headway has already been made, however.
Automakers Toyota and Stellantis separately announced plans to construct lithium-ion battery plants in North America on Monday. With regulatory pressures mounting, the industry has been shifting its eggs between baskets to avoid trouble. But the ultimate goal for most brands is to transition toward selling EVs, requiring meaningful action and financial expenditures on the part of manufacturers.
We’ve already seen General Motors and Ford Motor Co. squabbling over who will nestle the biggest battery facilities between America’s Frost and Sun Belts. It’s only fitting that the remnants of the Chrysler Corporation contained in Stellantis walk the path of electrification, especially now that it’s absolutely riddled with European influence. Meanwhile, Toyota is predictably exercising a bit of caution as it similarly navigates how to modernize itself via upcoming lithium-ion plants.
Daimler is getting cozy with Chrysler again, or at least the American side of Stellantis, so they can tackle battery development and production. Those in the know will recall that Chrysler has been passed around more than a bottle of booze at a middle school party. But its long history of partnerships also kept it in business and resulted in some of its better products.
Before the Amero-French merger that resulted in Stellantis, Fiat Chrysler Automobiles was an Italian-American company with facilities dotted around North America. Prior to that, it was known as DaimlerChrysler – resulting in the LX Platform, Pentastar V6, and a wider variety of Jeep Wranglers. Now, Chrysler’s alienated German wife has shown up on the doorstep with a wad of cash and news that she’ll be investing it into the new battery business.
Following the PSA-FCA merger that resulted in Stellantis, Dodge has been promising that it would reinvent muscle cars to become all-electric vehicles. This rattled many Mopar fans, with the hardest day being when the automaker teased what was undoubtedly an EV concept inspired by the original Dodge Charger in July. In an act of true sacrilege, it even carried the Fratzog logo worn by many Chrysler products from the era.
This week, Dodge CEO Tim Kuniskis provided a loose timeline for the company’s planned EV offensive and what we might expect. He also acknowledged that the company knows that some fans of the brand are filled to the brim with trepidation at the prospect of an electric muscle car.
Stellantis is recalling 212,373 Ram vehicles over issues relating to the side-mounted airbag inflators. Relevant safety reports were filed with the National Highway Traffic Safety Administration earlier in the month and describe circumstances somewhat similar to the nightmare that preceded the Takata airbag recall. Inflator components exposed to moisture may have a tendency to lose components or outright rupture, potentially spraying the interior with metal fragments.
The Ram inflators are believed to have been exposed to unnecessary levels of moisture during the manufacturing process, resulting in a weakening of the materials under pressure. FCA US (which is the name used on the NHTSA report, rather than the global Stellantis) started an investigation in December of 2020 after it had determined some pickups had been installed with side-curtain airbags with defective inflators. The company traced the issue all the way back to the 2015 model year.
The reviews are breaking today on the new Jeep Grand Wagoneer. As Jeep resurrects one of its most historical full-size nameplates from a three-decade slumber, it’s getting a lot of positive press coverage. But Jeep is in for a world of disappointment in a couple of years.
Detroit automakers and the UAW have elected to reinstitute national masking mandates for all of their facilities, starting Wednesday. General Motors, Ford, and Stellantis have issued a joint announcement clarifying that the rules are in accordance with the updated guidance from the Centers for Disease Control and Prevention (CDC) recommending masks be worn by all persons regardless of their vaccination status.
Based upon the text included in the release, the industry seems aware that the decision will be unpopular and is doing its utmost to transition responsibility without absolving itself entirely.
Since Groupe PSA expressed an interest in buying up Fiat Chrysler Automobiles, the Jeep brand has ramped up talk about the merits of electrification – particularly in places like Europe. The off-road-focused brand even has a plan to offer zero-emissions compliant vehicles in every segment by 2025. However, the only vehicle Jeep’s currently producing that seems to support those claims is the Wrangler 4XE PHEV and it’s still dependent on gasoline for journeys beyond 21 miles.
But that’s supposed to be changing now that the rumor mill is flush with new suggestions that Jeep is working on a small SUV that will be wholly dependent upon electrical propulsion. Those claims have been confirmed by Jeep’s leadership, with hints that it might be getting a few friends.
Stellantis, formerly known as Fiat Chrysler Automobiles, spent some time last week promoting “EV Day” and talking about its EV plans.
We covered the event and the company’s plans. We’ve also noted in the past that many OEMs are talking a big game on EVs but it’s anyone’s guess if they’ll meet the timelines and goals they’ve set for themselves (speaking generally here, and not just about Stellantis).
While the future is up in the air, we do have a record of the past, and speaking about Stellantis specifically, that past has been one of unkept promises.
Stellantis made many announcements yesterday at its “EV Day 2021” event, first and foremost a big commitment to EVs going forward. The second most important thing involved the super cringe slogans for each brand.
But there was also a Dodge-specific announcement, which promised the first-ever EV muscle car, and the resurrection of a long-dead logo.
Latest Car ReviewsRead more
Latest Product ReviewsRead more
- SilverHawk Only if they keep it focused on what a corvette represents, in a similar way as to what Porsche has done. Badge engineering using lower tier platforms is not acceptable. Don't even think about it, GM!
- Jeff S E-Vettes are coming to your nearest Chevrolet dealership. I reserve judgement on this I will have to see these and see the pricing. So far Lyriq is about the only GM vehicle I have any interest in.
- Kukala J. Machus GM has an extensive history of bad decisions.....and it continues.
- FreedMike Assumption: GM is making this "brand" into a Porsche competitor, which I think is a great idea. The problem is how to fit a Porsche-esque dealer experience into a Chevy dealership. I don't see that happening - the hoity-toity types who buy Porsches aren't going to want to rub elbows with the brodozer and "get me bought on a Trax with my 530 score" crowd. The ideal situation would be a standalone store, or a Tesla-esque "boutique" store. I also could see this being an add to Cadillac stores. The problem is that I don't see the Chevy dealers who currently make money selling Corvettes giving up the business willingly.So, unless GM comes up with some kind of separate sales channel for this, I vote thumbs down on viability.
- Stuart de Baker Wyoming is the 9th largest state, but has the lowest population of any state, and so with ~580,000, it's the most sparsely populated state. Of course they're not interested in EVs. And the ranges do tank in the frigid Wyoming winters. Anyone who is in a one car family, and drives long distances with any frequency, is not going to be buying an EV at this point. I'm saying this as someone who thinks that global warming is the biggest, most urgent problem humanity faces right now, and I live in the Boston area. But I'm a one car person, I drive long distances multiple times a year, and I love my Civic (stick).