After a record year, Stellantis will redistribute 2 billion euros to its employees worldwide

by time news

The automotive group recorded a net profit of 16.8 billion euros despite a drop in sales.

The Stellantis group recorded a second year of record profits in 2022, with a net profit of 16.8 billion euros, offsetting instabilities in the automotive market with price increases. Thanks to these record figures, Stellantis can spoil its shareholders, and pay part of the sum to its employees. This is a 26% increase in net profit over one year, announced Wednesday the automotive group, born in 2021 from the merger of PSA and Fiat-Chrysler.

Only hydrocarbon giant TotalEnergies has done better in the CAC 40 so far for 2022, with a net profit of $20.5 billion. The profit of Stellantis is even higher than that of the world leader in luxury LVMH (14.1 billion euros). The group with fourteen brands recorded a net increase in turnover (+18%) to 179.6 billion euros, price increases largely offsetting a drop in the number of vehicles sold in Europe.

The group will propose the payment of 4.2 billion euros in dividends for the 2022 financial year, i.e. 1.34 euros per share, compared to 1.05 euros for 2021. Two billion euros will also be donated to its 264,000 employees. worldwide. Its 43,000 French employees will notably receive a minimum of 4,300 euros in bonuses in April.

The group also plans to buy back 1.5 billion euros worth of shares by the end of 2023. Stellantis has however recorded a sharp decline in sales in its main market, Europe, to 2.6 million units. (-8%). This decline affected most of its brands, with sales of the Peugeot 308, Fiat Panda and Citroën C5 X not compensating for the logistics problems.

Slight market rebound

But the group was able to maintain its margins, in particular with price increases and new electric and hybrid models sold at a higher price. And it is on the North American market that it progressed with 1.8 million vehicles sold (+2%) and a turnover of 85 billion euros (+23%).

In a market strained by logistical problems and shortages of electronic chips, the manufacturer was able to raise its prices, and the Jeep Grand Wagoneer, Jeep Compass and Chrysler Pacifica sold well. THE “third engineof the group, i.e. the other regions of the world, also saw its turnover increase by 34% over the year, and its operating margin double to 3.8 billion euros. “In addition to our record results and the rigorous implementation of our Dare Forward 2030 Strategic Plan, we have also demonstrated the effectiveness of our electrification strategy in Europe.“, underlined in a press release the general manager of the group, Carlos Tavares.

The group sold 288,000 electric vehicles in 2022, an increase of 41%. It is hot on the heels of Tesla in electric sales in Europe and intends to multiply launches in the coming months. “We now have the technology, products, raw materials and complete battery ecosystem to drive this same transformation in North America, with our first all-electric Ram vehicles in 2023 and Jeep in 2024.“, he continued.

For 2023, the group expects automotive markets to rebound slightly (+5% in Europe and North America). The context should improve in 2023, said the group’s chief financial officer, Richard Palmer, during a press conference. Globally, rising raw material costs and logistics issues (delivery to dealers) resulted in costs of €9 billion.

In 2023, the effect of inflation and rising raw material costs is expected to be “weaker“. And the problems with delivering vehicles to dealers, which polluted the end of 2022, should be resolved in the first half, said Richard Palmer. The group is still aiming for a double-digit operating margin, having reached 13% of turnover in 2022. In the long term, Stellantis is aiming for 300 billion euros in turnover in 2030.


AT SEE ALSO – Last year, Stellantis already announced a record net profit of 13.4 billion

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