STLA reports high profits during union talks

Despite stockpiling huge numbers of cars, reportedly in anticipation of a strike, Stellantis reported—using its words—“robust profitability and cash flows,” and “strong growth in net revenues.” The margin, 14.4%, was near a record high; industrial free cash flow reached €8.7 billion (€1 = US$1.10, so €8.7 billion = $9.6 billion).

BEV sales rose by 24% while LEV (low-emission vehicles) rose by 28%. Stellantis was #2 in US LEV sales and #3 in Europe-30 BEV sales. The company also dominated commercial vehicles in both the EU and South America, with shares of 31% and 27%, respectively.

In North America, the margin was down somewhat, but still quite high at 17.5%. Market share fell to 10%. Looking to the future, Stellantis claimed eight BEV nameplates would arrive in 2024, including the Dodge Charger Daytona, Wagoneer S, Jeep Recon, and Ram 1500 REV. That leaves three unknown vehicles to be battery powered (they had already announced the ProMaster BEV).

In Europe, the Fiat 500 was the best selling A-segment BEV while the Peugeot e-208 was the best selling B-segment BEV. Overall, market share was 19%, down a bit, which the company blamed on logistics. A new car platform will start up in 2024 with the Citroën Ë-C3, an inexpensive BEV to sell for under €25,000 in early 2024. The company will also launch a “new retailer model” in a few European countries in the next quarter.

Smaller markets are the Middle East and Africa, South America, and Asia-Pacific. In the Middle East and Africa, the margin was nearly 26%; market share rose quite a bit, reaching 15%, giving the company #2 status in the region for the first time. In South America, the margin was a healthy 14%; Fiat was the top seller with a 14% market share, while the company as a whole was at 24%.  Finally, an Asia-Pacific (including China and India), the company had a 15% margin; online sales in China will start up with the Grand Cherokee, Wrangler, DS, and Alfa Romeo. The Citroën C3 and É-C3 will start production in India.

Maserati grew by 42% to 15,000 sales worldwide; Alfa Romeo grew by 60% to 21,000 units in the first half of the year. Jeep’s global 4xe expansion saw LEV sales grow by 53%.

The company tagged Jeep, Chrysler, Ram, and Dodge as ”global SUV and American brands.” Maserati, DS, Alfa, and Lancia were “luxury and premium brands.” The rest were “European brands—core and upper mainstream.”

The ‘circular economy’ division saw a 25% growth in sales, driven by parts remanufacturing and reuse, with the first hub opened in the Mirafiori complex—it covers parts remanufacturing and vehicle dismantling, reconditioning, and recycling. Used vehicle growth grew by 17%.