Report Blog Entry
Here goes my first stab at writing about car news this week! For the first item for discussion, I felt like discussing Stellantis would be a fun topic to cover!
For those of you that don't know, Peugeot and it's holding company, PSA (Peugeot S.A.) has made the acquisition of the Fiat Chrysler Automobiles (FCA). If you're not super nerdy about cars, you may recognize some of these terms from financial news reports and so forth. Basically, large holding companies hold rein over auto companies and keep them organized, flushed with cash, and technology to develop new products. Peugeot owns.....Peugeot of course, as well as Citroen, Opel, Vauxhall, which is America-speak for absolute gibberish. Fiat Chrysler on the other hand, to name a few, has Dodge, Chrysler, Jeep, Fiat, and so much more. PSA bought the FCA brands in a 50 million dollar deal to merge the holdings under one umbrella. This new alliance venture will continue to be called Stellantis (STLA).
What does this mean for you? It means that there are new sheriffs in town for the Dodge/Chrysler/Jeep companies, and that things are going to be changing as far as development goes and whatnot. Peugeot is a French automaker that hasn't sold cars here in the US successfully since the 1980's. In 2019, they were thinking about offering their cars through existing FCA dealer networks, but those plans soon dematerialized because of all the material shortages and low demand caused by the pandemic. One thing that is for certain is that this week, PSA announced that it will be disbanding the SRT (Street & Racing Technology) team, and spreading the engineers on that team to different branches within different brands and development teams under Stellantis. This maneuver is to ensure that there will be cars made to be a little more fun than what is normally offered, and make a car people actually want to buy.
Before you get mad about this team getting broken up, we have to consider what has happened with FCA. Some of the most radical cars have come out of SRT, and launched cars such as the Viper, Ram SRT10, Jeep Grand Cherokee Trailhawk, and many others into the automotive zeitgeist, but don't quite pay the bills nicely at the end of the day. According to Car and Driver, there's 4 FCA cars that made the top 25 best-selling cars list of 2020, and only one of them is in the top 10. FCA has grown more stale than a day-old baguette that can't be saved by toasting it and spreading a nice jam on top. PSA will be able to help it's newly acquired automakers to replace aging platforms, make strides towards making more profitable vehicles, and put out more cars with hybrid/electric drivetrains.
If you feel like skipping to the meat and potatoes of the matter: you won't be able to buy a US-Market Peugeot anytime soon, Stellantis = more fun regular cars, and FCA was heading nowhere anyway. The future is as unclear for Stellantis as it is for everyone else right now, but I can definitely say that I hope to see a stronger lineup of cars that I would actually want. Chargers and Challengers bore the heck out of me, the 200 and the Dart are rental cars that nobody wants, and the Wrangler.....don't get me started on the Wrangler. Until the day comes that I drive a Wrangler that changes my mind, I see the Wrangler as a lifestyle item.
How has this shift in control at FCA made you feel? Lemme know in the comments!
Source:
https://www.caranddriver.com/news/g32006077/best-selling-cars-2020/
Comments
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Valis
I have no idea. Can you tell me which stock to buy?
Nooooo, I barely know which stonk to buy
I’ve been monitoring the Stellantis stock for a while now, and it doesn’t deviate outside of +/- $2. Car stocks aren’t a rocket ship to the moon like the meme stocks sadly.
by rambot; ; Report
I bet Stellantis will be profitable, though, just not like a huge meme rush profit?
I bought Nio stock when it was under $4. Unfortunately, I bought only 10 shares so like, yeah. Hahaha
by Valis; ; Report
Nice! If anything, I’m waiting for the price to come down, and see what they do on a proposed new platform for the Dodge Charger. It’s basically a recycled Mercedes E-class from the 90’s, and it is one of the heaviest things known to man right now. My thinking is that a fresher update to the lineup will get you a higher valued stock, and earn you some good dividends.
by rambot; ; Report