Day: May 5, 2021

Chip shortage impact remains ‘controlled’

MILAN (AP) — The Stellantis automotive company created out of the merger of Fiat Chrysler Automobiles and PSA Peugeot reported Wednesday a 14% increase in first-quarter revenues, despite a drop in production due to the semiconductor shortage.

Stellantis revenues for the first three months of 2021 were 36.9 billion euros, compared with 32.4 billion euros ($44.42 billion) in the first three quarters of last year. The merger became formal on Jan. 17, 2021, creating the world’s fourth-largest carmaker, and the figures take into account the individual performances of Fiat Chrysler and PSA Peugeot in the preceding periods.

Lost production due to the global chip shortage for the period was 190,000 vehicles, Stellantis Chief Financial Officer Richard Palmer said. Eight of the company’s 44 plants are currently affected, leading to reductions in shifts or vehicle lines. Palmer said the impact was likely higher in the second quarter but “is still very

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‘If you have an extra car to sell, there may never be another time greater than this’

The used car market is booming.

The average cost of a used car or truck has surpassed $20,000, a 10% increase over the past 12 months.

The surge may not be slowing down anytime soon due to low supply and high demand issues in the automobile industry. Cox Automotive, which owns Kelley Blue Book and Autotrader.com, estimates that demand for used vehicles has doubled since last March.

Rental car companies struggled in 2020 because of the pandemic and as a result Hertz
HTZGQ,
+27.45%,
Enterprise and others bought fewer new cars — and sold more of their existing fleets. In addition, recent production issues for many automakers, and an influx of federal stimulus checks to Americans, caused used car prices to spike.

“If you have an extra car to sell, it’s a great time — there may never be another time greater than this,” Eric Ibara, director of

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Car Salesman Accused of Costing Fiat Chrysler $8.7 Million With Employee Discount Scam

A car salesman in Michigan is being accused of costing Fiat Chrysler Automobiles (FCA) $8.7 million in a wire fraud scam.

The Department of Justice unsealed charges against 34-year-old Apollon Nimo on Friday, charging the Parkway Chrysler Dodge Jeep Ram salesman with wire fraud and conspiracy to commit wire fraud for allegedly orchestrating a seven-year-long scam that involved illegally selling employee discounts to non-qualified car buyers.

Nimo was arrested on Friday and appeared in court before being released on bond. If convicted, he could face up to 20 years in prison.

According to a release from the DOJ, Nimo “improperly trafficked in, used, and sold” the manufacturer’s employee purchase control numbers (EPCNs) through private Facebook groups from 2014 through the present. Nimo’s use of EPCNs not only provided discounts to non-qualified customers, but also aided him in becoming the top Fiat Chrysler seller in 2018 and 2019.

“The complaint further

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