Introduction to the Resurrection of the Hemi Engine

DETROIT — Stellantis said Thursday it is resurrecting its popular V-8 Hemi engine for its Ram 1500 full-size pickup trucks beginning this summer. The company discontinued the 5.7-liter engine amid tightening fuel economy regulations and a companywide push toward electric vehicles and more efficient engines last year under ex-Stellantis CEO Carlos Tavares.

The Decision to Cancel the Hemi Engine

Ram CEO Tim Kuniskis, who unretired from the automaker late last year, admitted the decision to cancel the Hemi engine for its popular consumer-focused Ram 1500 was a mistake. "Everyone makes mistakes, but how you handle them defines you. Ram screwed up when we dropped the Hemi — we own it and we fixed it," Kuniskis said in a press release.

Bringing Back the Hemi Engine

The announcement marked the latest reversal in automakers’ plans this year, as EV adoption has been slower than expected and as the Trump administration has sought to unwind many of former President Joe Biden’s initiatives to push the auto industry away from gas-guzzling internal combustion engines. The Hemi announcement, which comes as the automaker delays plans for its electric trucks, is part of Kuniskis’ new product turnaround plan, which includes 25 product announcements over an 18-month period, the company said.

Impact on Sales and Production

Ram’s sales have struggled for years amid price increases and production mishaps, as well as the automaker killing off the Hemi engine — a staple of the automaker and its predecessors since the 1950s. Kuniskis said he expects Hemi to represent 25% to 40% of the Ram 1500 pickup trucks’ sales. Ram has continued to offer Hemi engines in larger pickup trucks.

Engine Specifications and Options

Ram discontinued the Hemi in exchange for a more efficient twin-turbocharged, inline-six-cylinder engine called the Hurricane. That engine will continue to be offered, with the Hemi as a $1,200 option on most models. A 3.6-liter V-6 engine is standard on entry-level models. The 5.7-liter Hemi V-8 delivers 395 horsepower and 410 foot-pounds of torque. The Hurricane that replaced it has 420 horsepower and 469 foot-pounds of torque, while a high-output version of the Hurricane engine is rated at 540 horsepower and 521 foot-pounds of torque.

New Logo and Symbolism

Unlike previous generations of the truck, the new vehicle will not feature "HEMI" on the side. Instead, the company has created a new badge that features a ram’s head coming out of a Hemi engine that it’s calling its "Symbol of Protest." The new logo and name are an effort to regain customers who may have decided not to buy a Ram truck because the company attempted to push more efficient engines and EVs on them.

Conclusion

The resurrection of the Hemi engine is a significant move by Stellantis to regain its customer base and improve sales. By bringing back the popular engine and offering it as an option, the company is giving customers the freedom of choice they desire. The new logo and symbolism are also an effort to reconnect with customers and regain their trust.

FAQs

Q: Why did Stellantis discontinue the Hemi engine in the first place?
A: The company discontinued the 5.7-liter engine amid tightening fuel economy regulations and a companywide push toward electric vehicles and more efficient engines.
Q: How long did it take for Stellantis to bring back the Hemi engine?
A: The company was able to bring back the Hemi engine in six months, down from an initial estimate of 18 months.
Q: What is the new logo and symbolism for the Hemi engine?
A: The company has created a new badge that features a ram’s head coming out of a Hemi engine, which it’s calling its "Symbol of Protest."
Q: Will Stellantis still offer electric or hybrid pickup trucks?
A: Yes, the company is still expected to eventually offer electric or hybrid pickup trucks to assist in meeting emissions and fuel economy requirements for Ram.
Q: What is the expected sales percentage of the Hemi engine for the Ram 1500 pickup trucks?
A: Kuniskis said he expects Hemi to represent 25% to 40% of the Ram 1500 pickup trucks’ sales.

Introduction to Airport Lounge Access Changes

Airplane tickets are getting cheaper, but it’s getting more expensive to bring your family to an airport lounge. Capital One is the latest company to limit access to booming airport lounges to combat overcrowding.

Changes to Capital One Lounge Access

Starting February 1, Venture X and Venture X Business cardholders will no longer be able to automatically take a guest into lounges or bring authorized second card users. They will instead have to pay $125 annually for each additional cardholder to keep their lounge access, $45 per adult guest per visit, and $25 per guest 17 or younger. The $125 fee also includes second cardholder access to a network of Priority Pass lounges.

Rationale Behind the Changes

According to Capital One, the changes are intended to maintain a great airport lounge experience for Venture X and Venture X Business customers while continuing to deliver best-in-class premium travel cards at an accessible price point. The company stated, "As airport lounges continue to grow in popularity across the industry, we’ve seen our customers increasingly encounter wait times to enter them."

Spending Requirements for Complimentary Guests

Primary cardholders will have to spend at least $75,000 per calendar year to bring up to two complimentary free guests to Capital One lounges and one guest to Capital One Landings, smaller lounges built for travelers who tend to spend less time at the airport, like those heading to short flights. This spending requirement matches what American Express announced two years ago, also a measure to minimize crowding and keep the clubs feeling exclusive.

Credit Card Companies and Airport Lounge Networks

Credit card companies have ramped up their airport lounge networks in recent years, opening new locations to handle demand. And airport lounge access has been a central perk attached to rewards cards, which generally come with an annual fee. The Venture X card, which launched in 2021, is $395 a year, less than the $695 a year American Express charges for its Platinum card or the $550 JPMorgan Chase charges for the Chase Sapphire Reserve, both of which come with airport lounges.

Challenges Faced by Lounge Operators

According to Henry Harteveldt, founder of Atmosphere Research Group, "When it comes to lounges, Capital One is a challenger brand; they’re an underdog." Capital One has lounges at Denver International Airport, Dallas-Fort Worth International Airport, Washington Dulles International Airport, and Harry Reid International Airport in Las Vegas. It plans to open one this year at New York’s John F. Kennedy International Airport and one of its Landings at LaGuardia Airport. However, the new restrictions show that Capital One isn’t immune to its popularity leading to big crowds.

Industry-Wide Changes

Airlines have also raised prices to access airport lounges and built larger ones to accommodate the influx. Delta Air Lines, for example, has made sweeping changes to its lounge access policies, like getting rid of unlimited visits in favor of annual caps. And last summer, Delta unveiled its first Delta One lounge, dedicated to customers in its highest class of cabin. It plans to open a new one in Seattle later this month. American Airlines and United Airlines have also expanded their airport lounges and opened new top-tier ones for customers traveling in premium classes on long-haul flights.

Conclusion

In conclusion, the changes to airport lounge access policies by Capital One and other credit card companies and airlines are intended to combat overcrowding and maintain a high-quality experience for customers. While these changes may be inconvenient for some, they are necessary to ensure that airport lounges remain a valuable perk for premium travelers.

FAQs

Q: What are the changes to Capital One lounge access?
A: Starting February 1, Venture X and Venture X Business cardholders will no longer be able to automatically take a guest into lounges or bring authorized second card users. They will have to pay $125 annually for each additional cardholder to keep their lounge access, $45 per adult guest per visit, and $25 per guest 17 or younger.
Q: Why are these changes being made?
A: The changes are intended to maintain a great airport lounge experience for Venture X and Venture X Business customers while continuing to deliver best-in-class premium travel cards at an accessible price point.
Q: What is the spending requirement for complimentary guests?
A: Primary cardholders will have to spend at least $75,000 per calendar year to bring up to two complimentary free guests to Capital One lounges and one guest to Capital One Landings.
Q: Are other credit card companies and airlines making similar changes?
A: Yes, other credit card companies and airlines are also making changes to their lounge access policies to combat overcrowding and maintain a high-quality experience for customers.

Introduction to Walmart’s Drone Deliveries

Walmart is bringing drone deliveries to three more states. On Thursday, the big-box retailer said it plans to launch the speedier delivery option at 100 stores in Atlanta, Charlotte, Houston, Orlando, and Tampa within the coming year. With the expansion, Walmart’s drone deliveries will be available in a total of five states: Arkansas, Florida, Georgia, North Carolina, and Texas.

How Drone Deliveries Work

Customers will request a delivery through the app of Wing, the operator who flies the drones through a deal with Walmart. The drone operator will have an up to a six-mile range from stores. Drone deliveries are one of the buzziest examples of Walmart’s efforts to compete with rivals like Amazon on convenience along with low price.

Walmart’s Efforts to Compete with Amazon

With more than 4,600 Walmart stores across the U.S., the retailer has used its large footprint to get online orders to customers faster. It has an Express Delivery service that drops purchases at customers’ doors in as fast as 30 minutes, along with InHome, a subscription-based service, that puts items directly into people’s fridges. The company began same-day prescription deliveries last fall and has expanded the service across the country.

Customer Feedback and Demand

"The number one piece of feedback that we get from our customers are, ‘When are you expanding?’" said Greg Cathey, senior vice president of Walmart U.S. transformation and innovation, referring to drone delivery. Cathey said shoppers using the drone service typically order urgent items, such as hamburger buns for a cookout, eggs to make brownies or Tylenol or cold medicine needed when sick.

Delivery Time and Items

Drone deliveries take 30 minutes or less, the company said. So far, some of the most frequently delivered items include eggs, ice cream, pet food, and fresh fruit, including bananas, lemons, and eggs, Walmart added. Walmart stores have an assortment of over 150,000 items in a location. Over 50% of those can be delivered by drone, Cathey said.

Challenges and Setbacks

Yet the rollout of speedy deliveries across the U.S. has come with stops and starts. Three years ago, Walmart announced a plan to expand drone deliveries with DroneUp so it would be able to reach 4 million households across six states fulfilled from 37 stores in parts of Arizona, Arkansas, Florida, Texas, Utah, and Virginia. At the time, the company’s leaders said the retailer would be able to deliver over 1 million packages by drone in a year by using those sites. The rollout never stuck.

Current Progress and Comparison to Amazon

Walmart’s drone delivery count so far is modest. The company did not share the specific count, but said it has racked up a total of more than 150,000 drone deliveries since 2021. Chief competitor Amazon’s expansion of drone deliveries has been slow-going, too. The e-commerce giant set a goal to deliver 500 million packages by drone per year by the end of the decade through its service, Prime Air.

Testing and Expansion

Walmart has tested drone deliveries in Northwest Arkansas, near its hometown of Bentonville, and scaled them to reach most of the population in the Dallas-Forth Worth area. Several drone operators, including Zipline, Flytrex, DroneUp, and Wing, have powered Walmart’s deliveries, but the retailer has not provided the financial terms of the deals or the amount of money it has made from sales delivered by drones.

Future Plans and Goals

Kieran Shanahan, chief operating officer of Walmart U.S., said the company wants to offer "flexibility and convenience" with drones, along with speedier deliveries by van. "We see it as part of a broader ecosystem of things," he said. "And who knows what five years, 10 years time will bring as new technologies and capabilities unlock?"

Conclusion

Walmart’s expansion of drone deliveries is a significant step towards competing with Amazon and providing faster and more convenient delivery options to its customers. While there have been setbacks and challenges, the company remains committed to its goal of providing speedy and flexible delivery options.

FAQs

Q: What states will Walmart’s drone deliveries be available in?
A: Walmart’s drone deliveries will be available in a total of five states: Arkansas, Florida, Georgia, North Carolina, and Texas.
Q: How do customers request drone deliveries?
A: Customers will request a delivery through the app of Wing, the operator who flies the drones through a deal with Walmart.
Q: What is the delivery time for drone deliveries?
A: Drone deliveries take 30 minutes or less.
Q: What items are most frequently delivered by drone?
A: Some of the most frequently delivered items include eggs, ice cream, pet food, and fresh fruit.
Q: How many items can be delivered by drone?
A: Over 50% of the 150,000 items in a Walmart store can be delivered by drone.