Wednesday, November 30, 2022
Home Business Plan Stellantis Reports Big Profit Even as Chip Shortage Cut Output

Stellantis Reports Big Profit Even as Chip Shortage Cut Output

The automaker Stellantis said its profit more than doubled in 2021 to 13.3 billion euros, a result of cost savings and higher car prices that more than offset disruptions to production and sales caused by the global shortage of computer chips.

The company, which was formed a year ago by the merger of Fiat Chrysler and France’s Peugeot, said revenue for the year was €149 billion ($168 billion). The two companies had combined revenue of €134 billion in 2020.

In a conference call with analysts, the company’s chief executive, Carlos Tavares, said Stellantis was watching the tension between Ukraine and Russia closely. The automaker has a plant in Russia, and Mr. Tavares said it was unclear how the economic sanctions imposed by Western nations on Russia would affect it.

The sanctions are intended to punish President Vladimir Putin of Russia for recognizing two breakaway regions of eastern Ukraine and deter him from invading Ukraine.

The Stellantis plant, in Kaluga, about 165 miles southwest of Moscow, makes small delivery vans and has the capacity to make up to 125,000 vehicles a year. Stellantis has been planning to export vans from the plant.

“If we cannot supply the plant, if that is the reality, we have either to transfer that production to other plants or just limit ourselves,” Mr. Tavares said.

Stellantis is the fourth-largest automaker in the world and sells cars under 14 brands, including Chrysler, Ram and Jeep in the United States and Peugeot, Opel and Fiat in Europe.

Next week, Mr. Tavares is scheduled to outline a long-term strategic plan for the company, which will include the development of more than two dozen electric models over the next several years.

The automaker’s 2021 profit was a big improvement from 2020, when Fiat Chrysler’s and Peugeot’s combined profit would have totaled just €4.8 million. In 2021, Stellantis benefited from €3.2 billion in cost savings made possible by the merger, the company said.

Stellantis sold 6.1 million cars and light trucks last year, up from 5.9 billion in 2020. Its North American operations generated about half of the company’s revenue and €11.3 billion in pretax profit.

“The current conditions are very positive for margins,” Mr. Tavares said.

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