Stellantis, the fourth largest vehicle manufacturer after the merger of PSA and FCA last January, earned 5.790 million euros in its first half and is progressing faster than expected with the objectives set by Carlos Tavares, its CEO: linked synergies After the union of the two groups, they now reach 1,300 million euros and the profitability of the operating margin reaches 11.4% until June. The group announced this Tuesday that it expects it to be around 10% by the end of the year, despite the fact that in March it expected to place it in a range of between 5.5% and 7.5%.
Like other manufacturers, Stellantis is taking advantage of the setback that has become the crisis forced by the lack of semiconductors in the global market, which is forcing to reduce productions and that manufacturers focus on assembling more profitable vehicles, which are at the same time the most expensive in its catalog. In any case, the group considers that its industrial chain will not be more affected by the problems to supply chips or closures in its European and US factories due to the pandemic. In the first half of the year, the lack of semiconductors prevented it from assembling half a million vehicles. It has also been impacted by the increase in the costs of raw materials such as steel, aluminum and copper.
The group, which includes brands such as Peugeot, Citröen, Fiat, Chrysler or Jeep, among others, closed the first half of the year with revenues of 72,610 million euros, a figure that in comparable terms with the two merged groups would be 75,310 million euros. The operating profit stood at 8,622 million euros, which places the operating margin at 11.4%. The group’s financial director, Richard Palmer, has described this result as a “record” for the two groups that articulated the merger.
“In addition to delivering a strong operating result, the company also made significant progress on strategic issues related to accelerating electrification and software, which are fundamental pillars of our strategy,” Tavares highlighted of the progress of the merger. Stellantis plans to launch 11 new electric vehicles and 10 hybrids in the next two years and has announced the construction of its third gigafactory to supply batteries in the town of Temori, in Italy. It also plans to specialize its British Ellesmere Port plant in electric-only vehicles from the end of 2022.
The good result achieved between January and June is mainly explained by the good performance of the North American market, where the operating margin climbed to 16.1%, almost double what it did in Europe (8.8%), despite to that in the Old Continent the number of sales doubles (1.6 million vehicles compared to 873,000).