Much under reported event, keep in mind Stellantis no longer do Quarterly Earnings like FIAT and previous versions of Chrysler.
This is because the French Government believes quarterly reporting takes focus away from the long-term of a company, so France is one of the only nations that allows such 6 month reporting.
So instead, Stellantis does a Sales Conference Call hosted by Sergio’s Chief Financial Officer; Richard Palmer.
I will give a overview of the call:
Palmer opens up with the call discussing net revenue of the Merged Company Of €32..6 billion during Q3 2021 which is down -14% with production down -30% and sales volume down -27%.
Palmer cited the chip shortage particularly in Southeast Asia area including COVID restrictions, but sees moderate improvement in chip availability throughout Q4 which was the theme of Palmer’s commentary throughout the call. November will basically be the “bottom” of the situation of Chip shortage.
Beyond chips, Palmer praise the performance of the Jeep brand during quarter around the world.
Moving to North America Palmer called out pricing as highly positive for the company: He breakdown of North America pricing was:
*Higher MSRPS
*Option loads/Configurations of Options
*Version mix
*Momentum of Grand Cherokee L
*Momentum of Wrangler especially the performance of Wrangler 4xe
*Discontinuation of Grand Caravan and Journey.
* Lower sales of Lower Ticket products like Cherokee, Compass
Palmer during Q&A when ask about the margins vs “Detroit Peers” stated Stellantis in North America is clearly operating at a higher level than Ford/GM.
Palmer confirmed profit guidance which means 2021 will be the most profitable year ever for North America/Chrysler with profit before Interest and taxes of $12-13 billion.
Not done with North America discussion, Palmer talked about importance of the Grand Cherokee to Jeep brand, and Grand Cherokee L is solving a important gaps in Company lineup.
Palmer stated previously the company made Grand Cherokee and Durango together at JNAP, but JNAP ran out of capacity.
As a result Durango was a Victim of the Grand Cherokee’s success, historical the company would prioritize the Grand Cherokee.
Adding the Mack plant allows the company to produce more Grand Cherokee’s, including addressing International opportunities and Palmer stated the Grand Cherokee became the best selling CUV/SUV in the U.S. during Q3.
On the Wagoneer family launch Palmer stated the company is prioritizing the Grand Wagoneer (Chips) and that due to the Grand Cherokee success , Jeep had to go into the segment which before the Wagoneer family the company didn’t have competing models against “GM Triplets “ as well the Navigator.
More to come from the lengthy call including European markets!
