Stellantis Profit Soars as North American Demand Offsets Europe
Automaker Stellantis reported Tuesday a 26 percent jump in net profit last year, with strong demand for its Jeeps and Chrysler minivans in North America making up for a slump in European sales.
Profits for the group forged from the merger of PSA of France and the US-Italian firm Fiat-Chrysler hit 16.8 billion euros ($17.9 billion), as higher sale prices helped counter higher material costs and supply constraints.
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The company sold 1.8 million vehicles in North America, with the Jeep Grand Wagoneer and Compass models its most popular along with the workhorse Pacifica minivan.
But European unit sales fell eight percent to 2.6 million, with declines seen for its mainstay Peugeot, Citroen and Opel brands -- reflecting the overall drop in European new vehicle registrations to a three-decade low last year, largely due to component shortages since the Covid pandemic disruptions.
Finance director Richard Palmer told a press conference that prospects for auto markets would improve this year, with the company aiming for annual revenues of 300 billion euros by 2030, after the 180 billion euros booked last year.
Like its rivals, Stellantis is racing to build up its electric offerings, which saw a 41 percent jump in unit sales to 288,000 vehicles.
Currently the group has 23 battery-powered models and expects to have nearly 50 by the end of 2024, and forecasts the sale of five million electric vehicles a year by 2030.