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Stellantis (NYSE: STLA) today reported record full year 2023 results with net revenues growing 6% year-over-year to €189.5 billion. Net profit rose 11% to €18.6 billion, helped by a 10% gain in operating income due to the non-recurrence of unusual charges in 2022, mainly related to the Takata airbag recall and CAFE penalty adjustments. Significantly, industrial free cash flow increased 19% y-o-y to €12.9 billion. All told, Stellantis shipped ~6,392,600 vehicles during the year. As a result, it proposed a dividend of €1.55 per common share, that’s plus ~16% compared to 2022, pending shareholder approval at the annual meeting on 16 April 2024.
“As we just passed the three-year mark since Stellantis’ inception, I warmly thank our teams who are executing at the highest levels and contributing greatly to our growth story, even in the strongest of headwinds. Today’s record financial results are proof that we have become a new global leader in our industry and will remain rock solid as we look to a turbulent 2024. Thanks to our flexible technology and product roadmap, we are prepared to address the various scenarios that could arise and to continue delivering on our Dare Forward 2030 targets,” said Carlos Tavares, CEO.
Stellantis will also execute a 2024 open-market share buyback program of €3.0 billion, which includes €0.5 billion of shares repurchased to service share-based compensation and employee share purchases.
Stellantis is betting heavily on the electrification of the auto industry. It noted that overall market growth is vital to the business plan and the electrification push in North America where 18 additional BEVs will be launched in 2024, reaching a total of 48 by end of 2024. In Europe, the all-new Citroën ë-C3 starts at €23,300 and is claimed to be the most competitively priced B-segment EV produced there. The Jeep® Avenger, was awarded European Car of the Year in 2023.
“These vehicles deliver solid profitability but they’re still not yet at the levels of our internal combustion engine vehicles,” Tavares observed. Key here is something the customer doesn’t see – the ability to flexibly produce all types of vehicles – traditional, fuel cell, battery electric – on the same production lines.
“It’s very important that we protect our share, if we don’t increase the share. Because we don’t have a shrinking strategy,” Tavares said on the earnings call that AutoInformed participated in. “We committed to you that we would double the net revenue of the company by 2030 compared to 2021. So it is very important for us to protect our share, and we want to do it in a way that is going to be respectful of the net revenues and respectful of the profitability. So to be very clear, it is important for us and we are now reacting to that,” Tavares said.
In Tavare’s view, EV adoption is mostly driven by the “alignment of four different stars.”
- The first star is the Clean Energy Star. “We need to clean energy. Whatever you do in terms of CO2 emission reduction you need to start with clean energy.”
- Assuming that we have the clean energy, the second star is that we need to have a “visible and highly dense charging network, which means a charging network where you don’t need to look for the charging spot. It needs to be there when you go to the shopping mall; when you go to the supermarket; when you go to the restaurant; when you go to gym – in the parking lots of those services.”
- The third star is the product itself. The product needs to be enjoyable with acceleration and range and all the things that make the product simply appealing. “I think we are there…I can tell with 42 years of automotive experience, the BEV products are better products, if we solve the inconvenience of range or the inconvenience of not finding always the charging that we’d like to find. So that’s the third star.”
- The 4th star is affordability. “I would say that on the first three stars, some progress is being made on clean energy. Some progress, probably not enough, is being made on the density of the charging network. The products are here, and the products are coming. We need to bring affordability… We’ll keep on working on reducing the costs of the EV technology.
“So when those four stars are going to align? Things are going to move and they will move faster and they will move eventually very, very fast. We have a big stimulation coming. It’s the Chinese offensive. It’s a big stimulation for us to go faster in aligning those four stars.
“When I was asked the question this morning, if we are going to take any decision like some of our US competitors in terms of slowing down, what we are doing in electrification and my answer is crystal clear. No, we keep it flat out because we believe that the education of the citizens and the education of the consumer about the urgency of contributing to fixing the global warming issue is going to grow. The fact that we are already seeing that we are above 1.5° of global warming much sooner than what we had predicted. So the public opinion is going to push in that direction. Whatever happens, you may have some bumps on the road, some slowdowns on the road, but anyway it’s going to move – so we keep it flat out in the execution of the move forward plan,” Tavares said.
Stellantis launched the first of four all-new BEV-centric platforms, STLA Medium, on the Peugeot E-C3 with best-in-class range of up to 700 kilometers (435 miles). The second platform, STLA Large, is launching in 2024 with 800 kilometers (500 miles) range and designed to exceed customer expectations, it’s claimed. STLA Large is a highly flexible, BEV-native platform that will serve as the foundation for upcoming global vehicles in the D and E segments, and able to take multiple propulsion systems, including hybrid and internal combustion.
The STLA platform family (Small/Medium/Large/Frame) is claimed to be “future proof,” with modular and inherent flexibility in wheelbase, width, overhang, ride height and suspension design. “The capabilities and performance of STLA based vehicles will adapt and improve over the years with the implementation of the STLA Brain architecture, STLA SmartCockpit and STLA AutoDrive platforms – enabling over-the-air updates to software and enhanced hardware,” said Stellantis.
Stellantis said it has secured raw materials sourcing through 2027, and signed an agreement with CATL for the supply of LFP battery cells and modules, further expanding its battery chemistries portfolio. Stellantis and Ample established a partnership in battery swapping technology to deliver fully charged EV batteries in less than five minutes. Stellantis joined Symbio and the other shareholders in inaugurating SymphonHy, the first gigafactory in France and Europe’s largest integrated site producing hydrogen fuel cells.
Stellantis is also implementing a multifaceted semiconductor strategy to ensure supply security and drive innovation. SiliconAuto, the 50/50 joint venture with Foxconn, which will tailor chips aimed at a new generation of automotive industry vehicle platforms starting in 2026. In 2023, Stellantis Ventures invested in six new startups, and Stellantis signed 49 commercial contracts with new startups.
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Stellantis Posts Record 2023 Results – €18.6B Net
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Stellantis (NYSE: STLA) today reported record full year 2023 results with net revenues growing 6% year-over-year to €189.5 billion. Net profit rose 11% to €18.6 billion, helped by a 10% gain in operating income due to the non-recurrence of unusual charges in 2022, mainly related to the Takata airbag recall and CAFE penalty adjustments. Significantly, industrial free cash flow increased 19% y-o-y to €12.9 billion. All told, Stellantis shipped ~6,392,600 vehicles during the year. As a result, it proposed a dividend of €1.55 per common share, that’s plus ~16% compared to 2022, pending shareholder approval at the annual meeting on 16 April 2024.
“As we just passed the three-year mark since Stellantis’ inception, I warmly thank our teams who are executing at the highest levels and contributing greatly to our growth story, even in the strongest of headwinds. Today’s record financial results are proof that we have become a new global leader in our industry and will remain rock solid as we look to a turbulent 2024. Thanks to our flexible technology and product roadmap, we are prepared to address the various scenarios that could arise and to continue delivering on our Dare Forward 2030 targets,” said Carlos Tavares, CEO.
Stellantis will also execute a 2024 open-market share buyback program of €3.0 billion, which includes €0.5 billion of shares repurchased to service share-based compensation and employee share purchases.
Stellantis is betting heavily on the electrification of the auto industry. It noted that overall market growth is vital to the business plan and the electrification push in North America where 18 additional BEVs will be launched in 2024, reaching a total of 48 by end of 2024. In Europe, the all-new Citroën ë-C3 starts at €23,300 and is claimed to be the most competitively priced B-segment EV produced there. The Jeep® Avenger, was awarded European Car of the Year in 2023.
“These vehicles deliver solid profitability but they’re still not yet at the levels of our internal combustion engine vehicles,” Tavares observed. Key here is something the customer doesn’t see – the ability to flexibly produce all types of vehicles – traditional, fuel cell, battery electric – on the same production lines.
“It’s very important that we protect our share, if we don’t increase the share. Because we don’t have a shrinking strategy,” Tavares said on the earnings call that AutoInformed participated in. “We committed to you that we would double the net revenue of the company by 2030 compared to 2021. So it is very important for us to protect our share, and we want to do it in a way that is going to be respectful of the net revenues and respectful of the profitability. So to be very clear, it is important for us and we are now reacting to that,” Tavares said.
In Tavare’s view, EV adoption is mostly driven by the “alignment of four different stars.”
“So when those four stars are going to align? Things are going to move and they will move faster and they will move eventually very, very fast. We have a big stimulation coming. It’s the Chinese offensive. It’s a big stimulation for us to go faster in aligning those four stars.
“When I was asked the question this morning, if we are going to take any decision like some of our US competitors in terms of slowing down, what we are doing in electrification and my answer is crystal clear. No, we keep it flat out because we believe that the education of the citizens and the education of the consumer about the urgency of contributing to fixing the global warming issue is going to grow. The fact that we are already seeing that we are above 1.5° of global warming much sooner than what we had predicted. So the public opinion is going to push in that direction. Whatever happens, you may have some bumps on the road, some slowdowns on the road, but anyway it’s going to move – so we keep it flat out in the execution of the move forward plan,” Tavares said.
Stellantis launched the first of four all-new BEV-centric platforms, STLA Medium, on the Peugeot E-C3 with best-in-class range of up to 700 kilometers (435 miles). The second platform, STLA Large, is launching in 2024 with 800 kilometers (500 miles) range and designed to exceed customer expectations, it’s claimed. STLA Large is a highly flexible, BEV-native platform that will serve as the foundation for upcoming global vehicles in the D and E segments, and able to take multiple propulsion systems, including hybrid and internal combustion.
The STLA platform family (Small/Medium/Large/Frame) is claimed to be “future proof,” with modular and inherent flexibility in wheelbase, width, overhang, ride height and suspension design. “The capabilities and performance of STLA based vehicles will adapt and improve over the years with the implementation of the STLA Brain architecture, STLA SmartCockpit and STLA AutoDrive platforms – enabling over-the-air updates to software and enhanced hardware,” said Stellantis.
Stellantis said it has secured raw materials sourcing through 2027, and signed an agreement with CATL for the supply of LFP battery cells and modules, further expanding its battery chemistries portfolio. Stellantis and Ample established a partnership in battery swapping technology to deliver fully charged EV batteries in less than five minutes. Stellantis joined Symbio and the other shareholders in inaugurating SymphonHy, the first gigafactory in France and Europe’s largest integrated site producing hydrogen fuel cells.
Stellantis is also implementing a multifaceted semiconductor strategy to ensure supply security and drive innovation. SiliconAuto, the 50/50 joint venture with Foxconn, which will tailor chips aimed at a new generation of automotive industry vehicle platforms starting in 2026. In 2023, Stellantis Ventures invested in six new startups, and Stellantis signed 49 commercial contracts with new startups.
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