Stellantis Hits Record High Sales Despite Difficulties in the Auto Industry
High-margin vehicles and popular electric models have bolstered Stellantis’ sales numbers well beyond expectations.
Written by Allison Stone
Reviewed by Kathleen Flear
If you’ve been shopping around for a
new car
, you know that demand is high and supply is low. Across the board, automakers are grappling with inflated prices for raw materials, supply chain and labor disruptions
due to the ongoing COVID pandemic, and semiconductor shortages
. In spite of this, Stellantis—the parent company of Chrysler, Fiat, Jeep, and Dodge—has reported record sales for the first half of the fiscal year. How did they do it? Read on with the car ownership experts at Jerry to find out.
Stellantis makes gains in North America
According to
Auto News
, Stellantis does not report quarterly financial results, but the automaker reported that adjusted earnings before interest and tax from January to June period rose to $12.7 billion. In North America, profit margins rose to a record of 18.1%. In all five regions that the group operates, margins were 10% or more. This is all part of the brand’s aggressive strategy to double revenue annually by 2030 and to convert its entire fleet to EVs.
Net revenue in North America rose 31% to $43.2 billion, which CEO Carlos Tavares attributes to “demonstrates a very high level of efficiency and effectiveness” in manufacturing.
Some of the most successful models included the Jeep Wagoneer, Grand Wagoneer, Compass, Grand Cherokee L, and the Chrysler Pacifica. Tavares noted that the company’s average transaction price was the highest among its peers at $53,654 for the quarter.
The Dodge Charger and Challenger both sold at record transaction prices of $47,000 and $44,000, respectively, while the Jeep Wrangle 4xe ranked as the top-selling plug-in hybrid in the U.S. with 19,000 units sold through June.
Electric vehicles are the key to growth
One factor in Stellantis’ success was the performance of high-margin vehicles, including electric vehicles (EVs).
Executives at Stellantis plan to overtake Tesla in EV sales soon, and they’re not the only ones. Volkswagen CEO Herbert Diess recently predicted that the German automaker would close the gap as soon as 2025.
General Motors CEO Mary Barra also intends to not only catch up to bypass Tesla’s sales within the same time frame.
"We are ahead of Tesla in Europe in electric vehicle sales, and not far from Volkswagen," said Stellantis CFO Richard Palmer.
Sales in Europe are slower overall in North America, but several Stellantis models including the electric Fiat 500 are performing well in Germany and Italy, while the Peugeot e-208 is the No. 1 battery electric vehicle (BEV) in France.
BEV sales for Stellantic rose nearly 50% globally in the first half of 2022, but Tavares remains realistic about the possible constraints to growth.
“I suppose that everybody in the world has supply contracts that are very much indexed on the price of raw materials,” said Tavares. “That's why so many people are trying to control the raw material supply.”
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4.7
