The merger between Fiat Chrysler Automobiles and PSA Group is reportedly progressing smoothly, with the involved parties announcing general meetings for their respective shareholders on Wednesday. Scheduled to take place on January 4th, the summit is being held “in order to approve the merger of their companies to allow the creation of Stellantis, which will become the world’s fourth largest automobile manufacturer by volume,” according to a joint release.
Fiat Chrysler Automobiles has said that it might be looking at $840 million if it wants to settle a Justice Department investigation into excess diesel emissions and threw some mild shade at regulators.
The manufacturer noted that the U.S. appeals court’s August ruling that overturned the Trump administration’s July 2019 rule that suspended a National Highway Traffic Safety Administration regulation more than doubling emissions penalties for automakers is playing a major factor in that sum. Obviously, it wishes they hadn’t.
One of the main reasons Fiat Chrysler Automobiles is partnering with PSA Group is to help soften the financial blows of battery development, we literally just talked about it. But the French automaker has its own reasons for wanting to get into bed with the FCA, namely its rather diverse list of subsidiaries — with Jeep occupying spot número uno.
Despite being offensively American to some, Jeep is the sixth most-popular nameplate in the United States. It also happens to be world-renowned as an off-road brand and had made strong inroads in places you’d never expect. This has forced the brand to rethink its global appeal, requiring Fiat Chrysler to issue some market-specific models like China’s Jeep Commander PHEV and the Renegade 4xe — the latter of which is already sold in Europe and slated to launch this November in Japan. But these models are only the tip of the iceberg as FCA intends on meeting ever-tightening emissions regulations in major markets that aren’t the United States.
Fiat Chrysler and PSA Group are reportedly in the homestretch of their $38 billion merger deal and on the cusp of becoming Stellantis — the planet’s fourth largest automaker by volume. The plan is to join forces to help absorb the monumental cost of developing alternative energy vehicles (like EVs) without losing any brands or shuttering any facilities that weren’t previously marked for death. We’re inclined to believe it when we see it, however, as the duo are also targeting an annual cost reduction of 5 billion euros (about $5.91 billion USD).
It also hasn’t been a smoothest of regulatory rides. After spending years hunting for the perfect partner, FCA and PSA had to adjust the terms of their existing deal to contend with losses incurred as a result of the pandemic response. But it all seems to be fine now and the European Commission has given approval and that’s what matters in finally getting this deal done.
Canada’s preferred choice in unions, Unifor, warned that contract negotiations with Fiat Chrysler Automobiles were progressing slower than anticipated over the weekend. By Wednesday, news of a strike had begun brewing over social media. Local 444 was issuing FCA-WAP bargaining updates on Twitter and Facebook that included marching orders in the event that the day’s discussions didn’t end in a handshake.
“To ensure we are prepared for a strike, or strike coordinators have been working to finalize the details needed in order to begin, if and when necessary,” the union wrote to members. “If a tentative agreement is reached by 11:59pm October 14th, without an extension in place, then Local 444 along with brothers and sisters across the country at all FCA facilities will be on strike. As the talks continue late into the night, any updates will be posted to our social media pages and web page.”
That scenario is looking increasingly likely, especially as Unifor has explained there was little progress to report all afternoon. It also opened this week suggesting contract talks were “not quite where we feel [they] should be with this limited amount of time left on the clock.”
Fiat Chrysler Automobiles and PSA Group announced a few revisions to their planned merger on Monday. Unfortunately, ditching the Stellantis moniker when they become the world’s fourth-largest automaker wasn’t among the changes listed. Because it still sounds like a medication for people with arthritis.
Ask your doctor is Stellantis is right for you. Don’t take Stellantis if you’re pregnant or nursing.
As the duo wants to maintain a 50/50 split, they need to address “the liquidity impact on the automotive industry of the COVID-19 pandemic while preserving the economic value” of their original agreement. That has left PSA maintaining control of French parts supplier Faurecia. A special dividend to be distributed among its shareholders before closing is set at 2.9 billion euros (which was previously listed as €5.5 billion) while PSA’s 46 [percent] stake in Faurecia will be distributed to all Stellantis shareholders following the newly formed board’s approval. (Read More…)
Thanks to a particularly slow news week, everyone has had extra time to gawk at the 2021 Maserati MC20 — a vehicle that serves to set right all that is wrong with the Italian nameplate and will be the first new vehicle the company has built in almost five years.
Despite being most famous for its racing vehicles from the 20th century, the brand has been passed around more than a basketball and has been forced to evolve its identity. Under Fiat Chrysler Automobiles, Maserati has remained fixated on luxury and had straddled the line between premium mainstream cars and hyper exclusivity. With a base price of around $200,000, it’s pretty clear what side of the line the MC20 is on. But it’s hard to criticize something that’s biggest problem is being a supercar — especially when it’s part of a larger effort to rebuild the brand’s racing pedigree and garner extra attention from the sort of people that are serious about cars and have money to waste on sleek, flame-belching baubles.
If Fiat Chrysler handed a dime to auto scribes every time it introduced a new trim or special edition Ram, there’d be quite a few additional millionaires roaming the streets.
Today they’d be 10 cents richer.
Yes, there’s more choice to be had in the Ram lineup for 2021, both in the light- and heavy-duty camps. Because Night editions already exist in the Ram lineup, the truck maker was forced to think long and hard for this one.
Introducing the Limited Night: (Read More…)
It should come as no shock that the loftiest Jeep Grand Wagoneer will crest the six-figure mark; the automaker said as much when it announced its intention to resurrect the bygone range-topper. It’s not like Cadillac and Lincoln aren’t nudging that barrier (or breaking through it) already.
But getting into a full-size Jeep next year doesn’t have to carry such a high cost. On the same day it revealed its damn-near-production-ready Grand Wagoneer Concept, the automaker talked price. (Read More…)
Beneath the Dodge Charger, you’ll find evidence of America’s oldest sedan, but it’s what’s up front that counts. Traditionally stuffed with as much muscle as Fiat Chrysler (and its predecessors) can muster, the aging Charger gets a testosterone injection for 2021 with the SRT Hellcat Redeye.
Familiar to Challenger aficionados, Redeye guise takes the already overly potent Hellcat and dials up the output — and also the price. If you can be swayed away from the “power dollars” offered on remaining 2020 models, the most powerful of these LX-platform sedans has what it takes to win shallow bragging rights for the buyer.
FCA thanks them for their contribution. (Read More…)
It’s a day of the week, which means it’s time for another installment in Jeep’s ongoing teaser campaign for its upcoming full-size SUVs. Thankfully, the Wagoneer and Grand Wagoneer, or at least the latter model, will see the light of day on September 3rd.
The images released by Jeep on Friday show additional glitter and acres of roof glass, but the vehicle itself might not be exactly what greets buyers next year. (Read More…)
Hopefully you’re all familiar with Stellantis — the chosen name for the sprawling automaker birthed from the merger of Fiat Chrysler Automobiles and France’s PSA Group. With the merger expected to wrap up in the first quarter of 2021, Stellantis is all about capitalizing on the respective partners’ strengths in the name of efficiency.
And, because of this strategy, FCA has reportedly issued a stop-work order on any development of future small or subcompact cars. The future of FCA small cars is now French. (Read More…)
For 2021, five Fiat Chrysler models will boast available Hellcat power. But only for 2021.
The recently unveiled Dodge Durango SRT Hellcat, with its supercharged 6.2-liter V8, can only legally exist for one year before new EPA emissions rules come into effect for 2022. The constrained lifespan means the Durango Hellcat is destined to be a relatively rare ride for all time. And getting into one will carry a steep premium over the previous top-dog model, the SRT 392. (Read More…)
Overshadowed lately by a brace of upcoming full-size SUV stablemates, to say nothing of its reborn Ford Bronco rival, the plug-in Jeep Wrangler remains the next big introduction for the off-road brand.
Teased on and off throughout the year, the Wrangler plug-in hybrid, known officially as the Wrangler 4xe (a moniker greeting all hybridized Jeeps), has appeared with an arrival date in tow. Best to get this introduction out of the way before a busy 2021. (Read More…)
Worried there’ll be legit flying cars by the time Jeep gets around to showing off its latest and largest? Don’t be. The busy teaser campaign Jeep’s marketing team has on the go will end on September 3rd.
On that day, the reveal of Jeep’s reborn Grand Wagoneer, the clock starts ticking down to second-quarter 2021 production. (Read More…)
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