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Stellantis Reports Big Profit Even as Chip Shortage Cut Output

The automaker Stellantis mentioned its revenue greater than doubled in 2021 to 13.3 billion euros, a results of price financial savings and better automobile costs that greater than offset disruptions to manufacturing and gross sales attributable to the worldwide scarcity of laptop chips.

The corporate, which was fashioned a 12 months in the past by the merger of Fiat Chrysler and France’s Peugeot, mentioned income for the 12 months was €149 billion ($168 billion). The 2 firms had mixed income of €134 billion in 2020.

In a convention name with analysts, the corporate’s chief govt, Carlos Tavares, mentioned Stellantis was watching the strain between Ukraine and Russia intently. The automaker has a plant in Russia, and Mr. Tavares mentioned it was unclear how the financial sanctions imposed by Western nations on Russia would have an effect on it.

The sanctions are meant to punish President Vladimir Putin of Russia for recognizing two breakaway areas of jap Ukraine and deter him from invading Ukraine.

The Stellantis plant, in Kaluga, about 165 miles southwest of Moscow, makes small supply vans and has the capability to make as much as 125,000 automobiles a 12 months. Stellantis has been planning to export vans from the plant.

“If we can not provide the plant, if that’s the actuality, we now have both to switch that manufacturing to different vegetation or simply restrict ourselves,” Mr. Tavares mentioned.

Stellantis is the fourth-largest automaker on this planet and sells automobiles underneath 14 manufacturers, together with Chrysler, Ram and Jeep in america and Peugeot, Opel and Fiat in Europe.

Subsequent week, Mr. Tavares is scheduled to stipulate a long-term strategic plan for the corporate, which can embrace the event of greater than two dozen electrical fashions over the following a number of years.

The automaker’s 2021 revenue was an enormous enchancment from 2020, when Fiat Chrysler’s and Peugeot’s mixed revenue would have totaled simply €4.8 million. In 2021, Stellantis benefited from €3.2 billion in price financial savings made doable by the merger, the corporate mentioned.

Stellantis bought 6.1 million automobiles and lightweight vehicles final 12 months, up from 5.9 billion in 2020. Its North American operations generated about half of the corporate’s income and €11.3 billion in pretax revenue.

“The present circumstances are very optimistic for margins,” Mr. Tavares mentioned.

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