Stellantis, the company created by the merge of Fiat Chrysler and PSA, is off to a fast start in first half of 2021 as revenues climbed 46% to 75.3 billion euro, or more than $87 billion, while it posted operating profit of 8.6 billion euro or $10.1 billion.
CEO Carlos Tavares said the company’s margin in North America was 16.1% thanks to strong sales of light-duty trucks and Jeep-branded vehicles. In addition, the company’s strong start after the merger produced synergies €1.3 billion of net cash in the first six months of 2021.
The company’s performance was hampered by losing 20% of its planned production in the first half, leaving it with negative cash flow, Stellantis executive said.
“I would like to thank warmly all Stellantis employees for their outstanding focus on operational excellence and synergies execution that have led the company to achieve very strong H1 financial results,” Tavares said in a statement.
“While delivering this strong operational performance the company also made significant progress on strategic matters related to electrification acceleration and software, which are fundamental pillars of our strategy.”
Company’s results driven by two places
“We have strong engines pulling us forward, Europe and North America,” said Tavares, who noted the company’s average transaction price of $48,000 in North America topped non-luxury rivals.
The record profitability, with record in the first half Ram Global and U.S. retail sales. The Jeep Wrangler 4xe the best-selling PHEV in the U.S for the second-quarter of 2021, following its launch in March 2021. Jeep is expanding market coverage with the forthcoming premium Grand Wagoneer and Wagoneer, he added.
In Europe, the company’s market share has expanded and the turnaround of FCA’s European operations is under way, he added, helping bolster the profit margin in Europe to 8.8%, he said.
Stellantis still moving ahead
Stellantis posted standalone carbon emission compliance in Europe in the first half, which means it will not have to pay any fines, as market share increased to 23.1%, with light-commercial vehicle leadership at 34.4% share.
Peugeot is the number two brand with 7.1% first half market share. Opel Corsa was the first-half segment leader in Germany and UK; Fiat was the market leader in Italy during the same period with 500e the No. 1 electric city carin 10 countries.
Maserati is in the black in the first half with adjusted operating income of 29 million euros and first-half market share increasing in all key markets.
In South America, the company’s overall market share has grown to 23.6%, he said. The company’s China strategy will be in place by the end of the year, Tavares said, “We are moving quite well.”
Stellantis’ move into electrification is full speed ahead with the launch of 11 battery electric vehicles and 10 plug-in hybrid vehicles during the next 24 months, Tavares said. The fully electrified LCV range in Europe, along with hydrogen fuel cell medium vans, by end of 2021; a third gigafactory in Italy. In addition, Stellantis is working with Archer to create vertical takeoff vehicles and with Engie EPS to develop fast-charging networks.