Stellantis-Record results due to car prices, but capacity decreases, Company News

Stellantis-Record results due to car prices, but capacity decreases, Company News

and Gilles Guillaume and Giulio Piovaccari

PARIS/MILAN, July 28 (Reuters) – Stellantis expects a gradual restructuring of semiconductor equipment in 2023, reducing the imbalance that has allowed it to raise the price of its cars and post new record results.

“I think the situation will improve during 2023 on the supply side, so there will be more supply to balance demand, but also less pressure on prices,” Carlos Tavares said during a press conference call.

“We don’t want to be caught in a situation where the price power is decreasing, but where we still have high raw material costs,” he added.

The price of energy is not decreasing, unlike the price of steel which is falling due to the expectation of a global economic recession.

Stellantis has therefore reduced its breakeven rate – the rate of sales that makes money – to 40% in the first half only, against the medium-term goal of 50%, “to be able to make money in any event. , including recession”, continued Carlos Tavares.

At this time, the group’s order book three times more than before the coronavirus pandemic is described as “rich” and shows that customers still accept the prices offered for car purchases, continued Carlos Tavares.

This price strike force enabled the world’s fourth largest car manufacturer, born from the merger between PSA and FCA, to post first-half sales of 88 billion euros (+ 17%) while its volume declined. -7% to 2.934 million).

Around 3:00 pm, Stellantis shares gained 4.9% to 13.58 euros.

“Results exceeded expectations in all divisions, particularly driven by North America and price mix,” Royal Bank of Canada commented in a note.


The group’s current operating margin reached 14.1% in the period, compared to 11.4% the previous year, as the higher selling price and the positive effect of the currency more than offset the significant impact of inflation of almost four billion euros, while the profit net rose 34% to 7.96 billion. euros (+34%).

In North America, the profit reached 18.1%.

Already accustomed to record margins thanks to its highly profitable SUVs and several years of strong savings, Stellantis is also now reaping the rewards of its electrification strategy.

Considered when behind the competition, the manufacturer took second place in the sale of electric cars in Europe in the first half.

Regarding electric models only, CFO Richard Palmer said during the press conference that Stellantis had beaten Tesla and was trailing leader Volkswagen with 136,000 sales in the first half (+50%).

The electric Fiat 500 was even the best-selling electric car in Germany at the time. Stellantis, which confirmed its goal of a double-digit margin in 2022, brings together 14 brands, including Fiat, Peugeot, Citroën, Alfa Romeo, Jeep and Opel. (Gilles Guillaume and Giulio Piovaccari, with Agnieszka Flak in Milan and Nick Carey in London, editing by Sophie Louet)