At Stellantis, one record result chases another. Two years after its creation, in 2021, the group formed following the merger of PSA with Fiat Chrysler pulverized the performance, already deemed exceptional, achieved in 2021, announcing, Wednesday, February 22, a net profit of 16.8 billion euros in 2022, an increase of 26%. It’s not as good as Total (20.5 billion euros), but it’s better than LVMH (14.1 billion). Turnover increased by 18% (179.6 billion euros) and the operating margin reached 13%, while the objective was to reach the 12% threshold in… 2030.
These performances, which are part of a context of positive results for the automotive industry, will allow Stellantis to reward its shareholders, who will receive 4.2 billion euros in dividends. To its staff will be distributed 2 billion euros, an additional envelope of 200 million.
In France, the 44,000 employees will obtain a bonus of at least 3,882 euros net, i.e. “2.4 months salary for the first levels of remuneration”. A gesture of redistribution unprecedented for ten years, but which may not appease the recurring controversy over the remuneration of the general manager, Carlos Tavares, who had pocketed 19 million euros for the 2021 financial year.
Ruthless cost-hunting
To post such results, the group benefited from the positive effects of the rise in the dollar, but above all it continued the ruthless cost-hunting, which it has made a specialty of, to lower its break-even point. He also endeavored to bring into play the synergies between the two founding entities of Stellantis, which represented 7.1 billion euros, while the perspective drawn was to reach 5 billion in two years.
These efforts, considered painful by the unions, have contributed to absorbing the increase of 9 billion euros in industrial costs caused in particular by the inflationary drift of raw materials. The manufacturer also found itself struggling with the shortage of semiconductors and logistical difficulties which some, within the group, believe could have been managed more efficiently.
The other great strength of Stellantis is its ability to increase average prices. The 41% increase in its worldwide sales of electric cars (288,000 units in 2022), which allows it to occupy second place in Europe on this market behind Volkswagen, and the first for utility vehicles, has strongly contributed. To the twenty-three existing electric models, nine will be added in 2023. However, not everyone is progressing at the same pace within the Stellantis entity.
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