Stellantis sees profits quadruple despite chip shortage

Stellantis sees profits quadruple despite chip shortage

Stellantis has had a strong 2021 despite the challenges of the global chip shortage. It quadrupled its profits and recorded 14 percent more sales than in 2020.

Stellantis made a sharply higher profit last year than in the first corona year 2020. Price increases and better-selling more expensive models resulted in a profit of €13.4 billion last year, four times that of a year earlier. The parent company of brands such as Peugeot, Citroën, Opel, Fiat and Chrysler produced fewer cars than planned due to chip shortages, but compensated for this by selling more cars from the more expensive segment.

The Stellantis, formed at the beginning of last year from a merger between Fiat Chrysler Automobiles and Groupe PSA, achieved a turnover of €152 billion. That is 14 percent more compared to the combined revenues at FCA and PSA in the previous year, when factory closures had a significant impact just after the outbreak of the corona pandemic.

1.7 million fewer cars

Automakers faced chip shortages last year, partly due to the rapid economic recovery from the pandemic and high demand for electronics and servers for storage during lockdowns. As a result, Stellantis was able to produce about 1.7 million less cars than planned, roughly one-fifth of the total production capacity. The chip shortage will also remain a problem this year, according to financial chief Richard Palmer. Even greater are the concerns about scarcity of raw materials, such as certain metals. Still, Stellantis looks optimistically ahead. For 2022, the company expects a profit margin of at least 10 percent.

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