Stellantis, the world's fourth largest automotive group, has just published this Thursday, July 28 a net profit of 8 billion euros for the first half, up 34% over one year. In a market...

Despite the semiconductor crisis, Stellantis makes record profit

The logos of the car companies Abarth, Lancia, Fiat, Alfa Romeo and Jeep and a new sign bearing the name of Stellantis, the company born from the merger between Fiat and Peugeot, at the entrance to the Fiat car factory in Turin, in Italy, January 19, 2021. AFP - MARCO BERTORELLO

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Stellantis, the world's fourth largest automotive group, has just published this Thursday, July 28 a net profit of 8 billion euros for the first half, up 34% over one year.

In an automotive market severely disrupted by shortages of electronic chips, the group born of the merger between the French PSA and the Italian-American Fiat-Chrysler nevertheless saw its sales drop by 7% worldwide, which does not did not prevent us from achieving an exceptional level of profitability.

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Stellantis, the group with fourteen brands, born from the merger of PSA and Fiat-Chrysler, recorded a turnover up 17%, to 88 billion euros, with an operating margin of 14.1%, never before achieved by these manufacturers.

Stellantis has however seen its sales drop by 7%, with 2.9 million vehicles sold worldwide, in an automotive market that has been greatly slowed down by shortages of electronic chips.

Sales were particularly affected by the collapse of the European market, where those of the new Peugeot 308, the Fiat Scudo and the DS4 “

are more than contrasted by the impact of shortages of semiconductors

”, specified Stellantis.

For economist Flavien Neuvy, director of the Cetelem observatory interviewed by our journalist

Patricia Lecompte

, there are several factors that explain Stellantis' good results: "

First, a more strategic long-term element, it should be remembered that Carlos Tavarès, when he took the reins of Stellantis, set out the objective of gradually moving upmarket in sales, of selling more expensive vehicles that bring in more.
That is the first element.
And today, this strategy is paying off.
And then, despite the shortage of components that also impacted Stellantis, the company sold a lot of rather high-end vehicles that are more profitable and more expensive.

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Everywhere, the group has favored the production of the most profitable models, including 100% electric vehicles such as the new Fiat 500 or the Peugeot e-208.

These saw their sales jump by 50%, with 136,000 units sold.

It should also be remembered that Stellantis is very well positioned in North America, in the United States with its Jeep brand, which is also doing very well and bringing in a lot.

Flavien Neuvy, economist and director of the Cetelem observatory

Patricia Lecompte

This is the second element that explains the good health of the group.

“

Sales of electric cars also increased by 50% at Stellantis in the first half.
The group has taken the turn of the electric, but it is obliged to do so like all automotive groups, since we recall that in Europe, the sale of thermal cars will be prohibited from 2035. And there too, that contributes to improve turnover since it must be remembered that electric cars are much more expensive than thermal cars.
So inevitably, it inflates the turnover of the company

, ”sums up the economist.

Stellantis had already recorded huge profits in its first year of existence in 2021, with 13.4 billion euros in net profit.

The group intends to double its turnover (152 billion euros in 2021) by 2030 by taking advantage of the electrification of the market and productivity gains.

(And with

AFP

)

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To read also: Herbert Diess leaves the head of the automobile giant Volkswagen

Despite the semiconductor crisis, Stellantis makes record profit

Despite the semiconductor crisis, Stellantis makes record profit

Models that roll

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