Stellantis* today posted a pre-tax operating profit of €3 billion. The company that is partly comprised of Jeep, Dodge Jeep and Ram said the strikes cost it around €750 million. However the strikes – characterized as “work stoppages”- resulted in ~$4 billion in lost sales.** Chrysler, Dodge Fiat, Jeep and Ram nonetheless reported a 7% increase in net revenue from quarter-over-quarter (YoY)at $48.1 billion. Stellantis said increased shipments, more inventory, better supply chain access and pricing were partially offset by foreign exchange rates.
“In the first half of this year, Stellantis emerged as the industry leader for AOI (Automotive Operating Income), AOI margin, and Industrial Free Cash Flows among comparable peers. Today, we are focused on maintaining our momentum by delivering industry-leading profitability and cash flows, addressing critical near-term industry challenges, and continuing our electrification and technology transformation. This growth is propelling the execution of our Dare Forward 2030 strategy,” said Natalie Knight, Stellantis chief financial officer, who has been in the job ~100 days.
Click to enlarge.
AutoInformed notes that Stellantis confirmed it financial guidance “where we intend to deliver diligent adjusted operating income margins both in Q4 and for the full year.” It is currently working at a ~11% margin. The work stoppage costs and future investments to support strategies will eventually appear in the operating results and on the balance sheet.
Knight was refreshingly candid about the opportunity to move from a “defensive or safety first balance sheet toward one that aggressively takes advantage of the opportunities presented by the huge cash flows the business is generating – starting with higher and better profitability.”
Stellantis Q3
- Net revenues of €45.1 billion, up 7% compared to Q3 2022, mainly reflecting improved volume and consistent pricing, partially offset by foreign exchange impacts.
- Consolidated shipments(1) of 1,427,000 units, up 11% versus Q3 2022, with Enlarged Europe, Middle East & Africa, North America and South America reporting year-over-year improvements.
- Total new vehicle inventory of 1,387,000 units at September 30, 2023. Company inventory of 388,000 units, up 158,000 units from December 31, 2022 reflecting a return to more normal levels after a multi-year period of materially constrained supplies.
- Tentative agreement reached with both UAW and Unifor. Work stoppages negatively impacted Net revenues by ~€3 billion, compared to planned production, through October.
- Global BEV sales up 37% versus Q3 2022 mainly from the Jeep® Avenger and growing commercial BEV vehicles sales, led by the Citroën ë-Berlingo.
- Stellantis repurchased €0.5 billion in shares during Q3 2023. During the nine months ended September 30, 2023, €1.2 billion in shares were repurchased. It expects to complete the announced €1.5 billion 2023 Share Buyback Program during Q4 2023.
Stellantis said it continued to strengthen its global electrification ecosystem and support its carbon neutrality ambitions:
- Concluding testing with Aramco on the compatibility of 24 engine families to use advanced drop-in eFuels, which will lower CO2 emissions of a potential 28 million Stellantis vehicles currently on the road;
- Unveiling with Saft the Intelligent Battery Integrated System, which the project team intends to make commercially available on Stellantis vehicles before the end of this decade;
- Announcing plans for a sixth gigafactory globally to support its bold electrification plan of securing approximately 400 GWh of battery capacity; it will be the second facility to be built in the U.S. with Samsung SDI;
- Investing in Controlled Thermal Resources Holdings Inc.’s Hell’s Kitchen project to produce up to 300,000 metric tons of lithium carbonate equivalent each year; and (v) completing its 33.3% purchase of Symbio, a leader in zero-emission hydrogen mobility to help secure Stellantis ‘leadership position in hydrogen-powered vehicles.
* Stellantis N.V. (NYSE: STLA / Euronext Milan: STLAM / Euronext Paris: STLAP)
** AutoInformed on
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
Stellantis Posts Q3 Sales Up 37%. Pre-Tax Profit €3B
Stellantis* today posted a pre-tax operating profit of €3 billion. The company that is partly comprised of Jeep, Dodge Jeep and Ram said the strikes cost it around €750 million. However the strikes – characterized as “work stoppages”- resulted in ~$4 billion in lost sales.** Chrysler, Dodge Fiat, Jeep and Ram nonetheless reported a 7% increase in net revenue from quarter-over-quarter (YoY)at $48.1 billion. Stellantis said increased shipments, more inventory, better supply chain access and pricing were partially offset by foreign exchange rates.
“In the first half of this year, Stellantis emerged as the industry leader for AOI (Automotive Operating Income), AOI margin, and Industrial Free Cash Flows among comparable peers. Today, we are focused on maintaining our momentum by delivering industry-leading profitability and cash flows, addressing critical near-term industry challenges, and continuing our electrification and technology transformation. This growth is propelling the execution of our Dare Forward 2030 strategy,” said Natalie Knight, Stellantis chief financial officer, who has been in the job ~100 days.
Click to enlarge.
AutoInformed notes that Stellantis confirmed it financial guidance “where we intend to deliver diligent adjusted operating income margins both in Q4 and for the full year.” It is currently working at a ~11% margin. The work stoppage costs and future investments to support strategies will eventually appear in the operating results and on the balance sheet.
Knight was refreshingly candid about the opportunity to move from a “defensive or safety first balance sheet toward one that aggressively takes advantage of the opportunities presented by the huge cash flows the business is generating – starting with higher and better profitability.”
Stellantis Q3
Stellantis said it continued to strengthen its global electrification ecosystem and support its carbon neutrality ambitions:
* Stellantis N.V. (NYSE: STLA / Euronext Milan: STLAM / Euronext Paris: STLAP)
** AutoInformed on
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.