Tag Archives: finalized

Stellantis Employees Are Getting $2 Billion Thanks To 2023 Sales

The merger between Fiat Chrysler Automobiles and PSA Peugeot Citroën was finalized in early 2021, birthing Stellantis. But even earlier than the deal was performed, the auto conglomerate shared its luck with its workers with the “pay for performance” initiative. Stellantis has since distributed €6 billion (about $6.4B at present change charges), with one other wholesome 2023.

After robust gross sales final yr, Stellantis can be rewarding its employees with a fats test in 2024. Employees are getting a whopping €1.9B ($2B) whole. The firm doesn’t say how many individuals will profit from the profit-sharing deal, but it surely does point out that round 95 p.c of its workforce was included within the “pay for performance” plan final yr.

2023 Abarth 500e

But it isn’t all excellent news. As the corporate strikes towards an electrical future, the corporate will trim 1000’s of jobs. In November 2023, Stellantis introduced voluntary buyout packages for six,400 salaried workers within the United States. This adopted an earlier announcement in April about voluntary exit packages supplied to 33,500 US-based workers, together with 31,000 hourly employees and a pair of,500 salaried employees.

An identical scenario is unfolding in Europe, the place job cuts are a continuing concern amid the trade’s shift to EVs. In its three years for the reason that merger, Stellantis has eradicated round 7,000 jobs in Italy alone. This regardless of the corporate’s dedication to maintaining all 14 manufacturers alive, together with Lancia.

2024 Lancia Ypsilon

The new Ypsilon, unveiled this week, alerts the rebirth of the troubled model and marks a big milestone as Lancia’s first electrical automobile and one in every of 18 EVs Stellantis plans to construct this yr. The firm goals to broaden its electrical choices additional, with a goal of getting 48 purely electrical fashions in its portfolio by the top of 2024.

Government Pauses Ban On Shady Dealership Upcharges

Late final 12 months, the Federal Trade Commission (FTC) finalized a rule meant to curtail shady dealership practices and shield customers from last-minute charges. This rule, often called the Combating Auto Retail Scams (CARS) rule, was accredited unanimously by the FTC, and was written to enter impact on July thirtieth of this 12 months. But now it has been paused due to vendor lobbyists.

The National Automobile Dealers Association (NADA) wasn’t happy with the CARS rule’s improvement, apparently, so it and the Texas Automobile Dealers Association filed a petition with the Fifth Circuit Court of Appeals difficult the legislation. The Court agreed to listen to the case difficult the FTC, and consequently, the CARS rule has been postponed.

The primary problem within the authorized battle is whether or not the legislation is definitely throughout the FTC’s jurisdiction to impose. The dealership teams, within the petition to the Fifth Circuit, referred to as it “an abuse of discretion” and search the courtroom to dam its implementation. The FTC maintains that the rule “does not impose substantial costs, if any” on law-abiding dealerships, and as a substitute merely ensures a extra even taking part in discipline for each dealerships and customers by eliminating junk charges and hidden prices.

The petition in opposition to the CARS rule was filed for expedited consideration, which implies that it is probably {that a} resolution will come from the courts throughout the 12 months. If the courts resolve in favor of the FTC, the FTC believes that the CARS rule will likely be delayed by just a few months at most, which implies it is attainable it would nonetheless be enacted earlier than the top of 2024.

Even if the FTC wins this battle, there could also be extra forward, as dealership teams have additionally pursued Congress to make legal guidelines instantly curbing the FTC’s means to manage automobile gross sales. The potential prices of breaking the CARS rule would possibly give perception as to why: violating a commerce regulation rule prices $50,120 per offense.

Shady Dealership Upcharges Are Now Illegal

The Federal Trade Commission (FTC) has finalized its new rule designed to fight nefarious vehicle dealerships utilizing shady techniques when promoting vehicles. Called the Combating Auto Retail Scams (CARS) Rule, it can get rid of junk charges which can be generally added to buy agreements and current prospects with a clearer up-front image of what the ultimate worth will likely be. In concept, anyway.

According to the FTC, the rule will prohibit sellers from misrepresenting pricing on autos, reminiscent of promoting a worth for a particular trim that might not be accessible for buy. Dealers will likely be required to tell prospects of add-ons that are not required, reminiscent of prolonged warranties. Toyota was recently fined $60 million for a plethora of infractions by way of Toyota Motor Credit, together with allegedly telling prospects some elective add-ons have been required.

The rule additionally goes after bogus add-ons, which the FTC describes as charges for gadgets or companies that serve no objective or deliver no added worth to the desk. Extended warranties that mirror a producer’s guarantee, or built-in service visits for oil adjustments on electrical vehicles are listed as examples. Dealers will likely be required to get customers’ consent for any fees paid which can be a part of the acquisition. And the FTC particularly mentions youthful members of the navy, whom the company believes are focused by unscrupulous sellers greater than most.

“When Americans set out to buy a car, they’re routinely hit with unexpected and unnecessary fees that dealers extract just because they can,” stated FTC Chair Lina M. Khan. “The CARS Rule will prohibit exploitative junk fees in the car-buying process, saving people time and money and protecting honest dealers.”

The rule handed by a vote of 3-0 and is ready to enter impact July 30, 2024. As you would possibly anticipate, the National Automobile Dealers Association (NADA) will not be in the slightest degree glad about it.

“This regulation is heavy-handed bureaucratic overreach and redundancy at its worst, that will needlessly lengthen the car sales process by forcing new layers of disclosures and complexity into the transaction,” NADA President and CEO Mike Stanton stated in an announcement. “The FTC made up data to support its claims, then rejected calls to slow down the process and test the effectiveness of its proposal with real consumers. We are exploring all options on how to keep this ill-conceived rule from taking effect.”

Motor1 contacted NADA to ask particularly concerning the made-up information to which Stanton referred. A spokesperson defined it was listed within the ruling, claiming “the FTC clearly states that it assumed – not ‘determined,’ ‘calculated,’ or even ‘estimated;’ assumed – that the regulation would save consumers $30 billion a year by somehow reducing time during the vehicle shopping process.” 

Perusing the 372-page FTC CARS Rule, the one point out of $30 billion comes on this part on web page 303:

The Commission’s preliminary evaluation estimated that the proposed rule would permit customers to spend 3 fewer hours finishing every motorized vehicle transaction and end in (quantifiable) total time financial savings valued at between $30 billion and $35 billion.

It’s price noting that NADA’s 364-page document submitted to the FTC in the course of the remark section claims that legal guidelines exist already relating to the problems in query. NADA additional claims that the rule violates the FTC’s already established procedures, and violates the First Amendment, and even then, automobile consumers are “generally very happy” with the method as it’s now:

Despite many unfounded stereotypes on the contrary, the general public file comprises ample information demonstrating that customers are typically very proud of their experiences buying cars. For instance, the Sales Satisfaction Index (SSI) compiled by famend market analysis agency J.D. Power exhibits that total buyer satisfaction with all sellers (each these the place they purchased and people they interacted with however didn’t purchase from) is excessive, scoring 789 on a 1,000-point scale in 2021.

With 736 mixed pages between the FTC and NADA, clearly, all sides has one thing to say. We suspect there could possibly be extra to return on this earlier than July 20, 2024, arrives.