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Stellantis triggers its profit by 26% due to the rise in the price of cars

Date: May 28, 2024 Time: 19:58:46

The automobile giant Stellantis shot up its net profit last year to 16,779 million euros, which represents 26% of the previous year. The firm was boosted thanks to the increase in inflation, after ‘saving’ the chip crisis caused by the coronavirus pandemic. Billing rose 18% to 179,600 million euros, and cash flow stood at 19,951 million, the company detailed in the annual results report.

The company attributed the results to a higher net margin of 13% (thanks to higher prices), as well as to the positive effects of currency exchange, the good reception of its new models and the growing synergies generated by the merger that gave rise to To be signed in 2021.

These drawbacks mean that the number of vehicles delivered in 2022 will drop slightly to 6 million units, 2.25% less. Looking ahead to 2023, the firm expects semiconductors to continue to be a problem. In addition, the company had an impact of around 9,000 million euros due to the increase in the costs of raw materials and energy, which was offset by better financial and industrial execution.

Stellantis highlighted the good progress of its electrified models, since it is the second manufacturer in sales of electric vehicles in Europe (first place in the commercial segment) and is the first in sales of plug-in hybrids in the United States. It currently has a total of 23 electric models in the different markets in which it operates, to which it will add another 9 this year.

Dividend of 4,200 million euros

With these results, Stellantis announced a dividend of 4.2 billion euros (1.34 euros per share) and a share reward program of 1.5 billion euros, which will be executed during this year. In addition, it announced a record extraordinary compensation of 2,000 million euros to its workers to make them participants in the benefits.

Looking ahead to 2023, the company expects to maintain a double-digit operating margin and positive industrial cash flow. “In addition to our record financial results (…) we have also demonstrated the effectiveness of our electrification strategy in Europe,” said the CEO, the Portuguese Carlos Tavares, in the statement from the director.

Stellantis, the product of the merger completed in 2021 between the Fiat-Chrysler and PSA (Peugeot-Citroen) groups, brings together a total of fifteen brands among which also appear in Europe such as Opel, Alfa Romeo or Maserati, and the Americans Jeep, Dodge or Ram.

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Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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