Posted on Jul 8, 2021 9:50 AM
The difficulties that automakers face in sourcing semiconductors do not prevent them from posting excellent results. Stellantis, the group resulting from the merger at the beginning of the year between PSA and Fiat Chrysler, thus reported Thursday morning of an “update on its results for the first half”, which promise to be better than expected.
The manufacturer, like its competitors, had to deal with “losses in volumes compared to the planned production”, due to the global shortage of chips . Some of its factories have been shut down for long weeks, whether in Europe or the United States, the two markets where Stellantis is the most powerful.
Prices pulled up
But this was offset by “very effective cost control measures,” says the group. Above all, it was able to rely on “favorable prices and a product mix”. This is particularly true in the United States, where the strong recovery in demand after the health crisis eliminated concession discounts and drove prices up. RAM and Jeep, the two brands that already have the highest margin rates, have undoubtedly benefited from this.
As a result, “the current operating margin for the first half of 2021 should exceed the range of 5.5 to 7.5% previously communicated for the entire financial year, ”the statement said. Stellantis also announces “a very promising start to the implementation of synergies” linked to the merger, described as “on track to exceed the objective of the first financial year”.
Stellantis must give details Thursday afternoon on its roadmap to convert to electric mobility. The press release mentions “significant investments in electrification and connected software”, and “batteries at the forefront in terms of energy efficiency and costs. “