Stellantis scores record profit in 2022

For the second year in a row, Stellantis has registered a record benefit. The net profit for 2022 reached € 16,8 billion, 26% more than last year. The operating margin reached 13% of turnover in 2022, a figure almost as high as noticeable money-makers under the car manufacturers in 2022, like Mercedes-Benz and Tesla.

In France, only the energy company Total Energies has so far done better, with a net benefit of € 20,5 billion. The total turnover of Stellantis (14 brands resulting from the merger of PSA and FCA) reached € 179,6 billion, also resulting in a serious increase (+18%).

These figures have been obtained despite a decline in total sales. In Europe, Stellantis sold 2,6 million cars, 8% less than the year before. In the U.S., the group sold 1,8 million vehicles (+2%), resulting in a turnover of € 85 billion (+23%).

More expensive and more electric cars

The decline in sales in Europe has mainly been compensated by higher prices per unit sold, increased cost-cutting, and a strong dollar. Furthermore, Stellantis has sold 288 000 fully electric vehicles, a sales rise of 41%. At the moment, Stellantis has 23 electric models on offer; by the end of 2024, this number has to be increased to 47. By 2030, the aim is to have 75 BEVs on offer and sell 5 million units of them.

“We now have the technology, the products, the raw materials, and the total battery ecosystem to realize the energy transition, also in the States,” commented CEO Carlos Tavares. “In 2023, our first fully electric RAM products will enter the market, followed by those of the Jeep brand in 2024.”

“Our strength is that we have several premium brands in our portfolio. We can share platforms and cut costs. Alfa Romeo represents sportiness, DS is the French kind of luxury, Lancia will reappear to embody Italian elegance, Maserati stands for absolute luxury, etc. We have a very complementary offer with different values, which makes it viable.”

Prudently positive

Regarding the expectations for 2023, the company stays prudently positive. A market sales increase of 5% is expected both in Europe and the US, with fewer delivery and supply problems resulting in a less chaotic market. The expected profit margin stays in the double-digit area. In the long term, Stellantis aims at € 300 billion in turnover.

“We are witnessing a recalibration of the entire market,” Tavares continued. It’s expected that our price strategy will get under pressure a little bit more. That’s why we still want to further reduce production costs. With our wholly filled order books and attractive new models, we have the necessary time to adapt ourselves.”

Redistribution

Stellantis wants to share these excellent results with its shareholders and employees. The shareholders will receive a dividend of € 1,34 per share, resulting in € 4,2 billion in total.

Apart from that, € 2 billion will also be distributed amongst the workforce, 264 000 people in total worldwide. “It’s € 200 million more than last year, and it is a fair recognition of the contribution of all Stellantis employees to make Stellantis win in a very demanding economic context.  When the Company does well, all employees do well; that’s what our pay-for-performance culture is all about.”

“It’s the largest sum we could obtain,” says Frédéric Lemaytch from the CFTC union. “We encountered a lot of headwinds last year, and the final result is that workers will earn a little more than the year before.

Other unions are less favorable: “The Stellantis Group once and again is putting the shareholders before the workers,” says the CFDT union. The bonuses largely undercut expectations and do not reflect the personnel’s engagement or the superb achievement on the market.”

“The record profits registered are due to the engagement and the implication of all workers within the company,” adds Force Ouvrière, the largest union in the group. “Stellantis has to assure adapted and better working conditions for all, thanks to a performant industrial tool and an ambitious R&D.”

The upcoming RAM 1500 REV electric pick-up will lead the electric offensive Stellantis is preparing in the U.S. /Stellantis

 

 

 

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