Mopar Insiders Forum

Register a free account today to become a member! Once signed in, you'll be able to participate on this site by adding your own topics and posts, as well as connect with other members through your own private inbox!

Sergio is smiling: North America record 16%+ margin in Stellantis 1st Half

AlexB

Well-known member
Joined
Jun 7, 2018
Messages
2,054
Reaction score
1,363
Like I have stated multiple of times( We Might Be Seeing Jeep® Grand Wagoneers Heading To Dealers Next Week!)

Outside of the stronger profile of the combination of finances, there's no impact to the North American business which been undergoing a transformation started by legendary Sergio in about 2015. Under Sergio, the North American business with 2015/2016 slashed sales to fleets (especially rental sales), overhaul dealer wholesale payment formula ,and cut unprofitable products (200 and Dart) in what turned out to be long-term declining vehicle categories.

On top those actions ,Sergio and his team at FCA went after ''Money left On The Table '' opportunities regarding Grand Cherokee, Wrangler and RAM. ''Money left On The Table '' opportunities included price, options & equipment, features , trim levels & packages ( including special editions), configurations (RAM Crew Cabs, Grand Cherokee L with 3-rows, birth of Gladiator), mix of configurations, overall mix, dealer allocations , and stimulating demand for these products as well huge investments in Capacity to build these products (Grand Cherokee, Wrangler, Gladiator RAM and family of Wagoneer ).

These actions all together have created strong Average Transaction Prices, among the highest mass marketed, which driven EBIT Profit margin (Earnings Before Interest and Taxes) higher than 10% (Sergio's target) and resulted in highest profitability for an OEM in North America. The addition of the Wagoneer family will further enhance the profitability of the North America unit.
The actions have taken place with the U.S. buyer moving away permanently from the traditional small & midsize passenger car categories which enhance the results of the actions strengthening the North American business for long-term health as the products categories focused on by the 2025/2016 direction can better handle new technologies while preserving profitability & value prospection of the models and brand DNA. Product categories like the traditional midsize passenger car category faces total extinction with ''the storm'' of new technology such as infotainment, driver aids, and Electric adds cost which in-turn changes the value prospection in such a point where there's no marketability to the category .

So to recap Sergio & his team achieve best in region profitability ,they also set the company up in North America to weather the ''storms'' of economy/social/tech.
The wacky ''fantasy'' that PSA products in the A/C/D traditional segments in Europe would be modified & federalize by a cost-cutting CEO (Carlos Tavares) is peak lunacy (and base on what that same crowd
recently stated on ''that other website'' there's some that don't understand the difference between EBIT or after tax profit vs revenue which is downright funny).

Carlos Tavares is focusing on reducing build cost/cost of goods/material cost which if successful without harming the commercial appeal of the products will only lead to bigger EBIT Margins likely in the Mid-teens in North America. As focusing on margins continues, Stellantis won't invest in poor segments, and will invest in all things Electric technology.”
In bold
Well oh Well
North America: Record profitability, with record H1 Ram Global and U.S. retail sales. Jeep Wrangler 4xe the best-selling PHEV in the U.S for Q2 2021, following its launch in March 2021. Jeep is expanding market coverage with the forthcoming premium Grand Wagoneer and Wagoneer.
854F515C-1540-46BB-A91C-87FDFA329E3B.png

80520B67-3FAD-4A9C-9360-DDD5AE00D7B4.pngD23B6D94-5507-4950-BA0F-7F6082DD6662.png6FE042C1-D358-48A5-ADD7-9AC8A84D61CD.png
Sergio is right again😎(y).
 

TripleT

Well-known member
Joined
Jun 27, 2018
Messages
2,587
Reaction score
2,807
The man took a ruined company. A company that was hours away from being divided up in parts to 3 different companies. 2 of it original brands killed and assets auctioned. The New York private equity people do what they do, after the former owner picked it bones in a failed attempt to buy Mitsubishi automotive.

Product was stale and interiors the laugh of the industry. Mitsubishi platforms hobbled together with incompatible Catia versions, suspect quality.......

And turned in a historically short time to the envy of the Industry.

Yet you will still find those who think he ruined it..... By saving it apparently.
 

AlexB

Well-known member
Joined
Jun 7, 2018
Messages
2,054
Reaction score
1,363
Got to laugh at Auto news put this as their 5th story behind freaking Subaru….. they never put GM Earnings as 5th story behind Mazda( for example)in fact they would make 5 different pieces base on the same earnings if GM number where as good.
 

cygnus

Well-known member
Joined
Oct 31, 2018
Messages
534
Reaction score
336
The man took a ruined company. A company that was hours away from being divided up in parts to 3 different companies. 2 of it original brands killed and assets auctioned. The New York private equity people do what they do, after the former owner picked it bones in a failed attempt to buy Mitsubishi automotive.

Product was stale and interiors the laugh of the industry. Mitsubishi platforms hobbled together with incompatible Catia versions, suspect quality.......

And turned in a historically short time to the envy of the Industry.

Yet you will still find those who think he ruined it..... By saving it apparently.

Exactly.
 

Bili

Official Pilot
Staff member
Joined
May 4, 2018
Messages
1,797
Reaction score
1,476
Like I have stated multiple of times( We Might Be Seeing Jeep® Grand Wagoneers Heading To Dealers Next Week!)

In bold
Well oh Well

View attachment 4975

View attachment 4976View attachment 4978View attachment 4979
Sergio is right again😎(y).
PSA.. ehm Stellantis is differently calculating margin than FCA.
 

AlexB

Well-known member
Joined
Jun 7, 2018
Messages
2,054
Reaction score
1,363
Ford North America Q1:$23 billion of revenue with EBIT Margin of 12.8%
EBIT of $2,949 billion
Ford North America Q2 : $15 billion of revenue with EBIT Margin of 1.3%
EBIT of $194 million

Q1 Ford:https://media.ford.com/content/dam/fordmedia/North America/US/2021/04/28/2021-ford-1q.pdf
Q2 Ford :https://media.ford.com/content/dam/fordmedia/North America/US/2021/07/28/2q-2021-ford-financials.pdf

Stellantis North America 6 months 2021 (Q1+Q2 2021 ): Revenue of $38.450 U$D Billion with (to repeat) operating margin of 16.1% .
Operating profit of $6,212 U$D Billion

Just insane good for Mopar.
 

AlexB

Well-known member
Joined
Jun 7, 2018
Messages
2,054
Reaction score
1,363
PSA.. ehm Stellantis is differently calculating margin than FCA.
Operating profit and EBIT are identical
Before factors of interest and Taxes except when there’s is an “ interest gain/interest generated revenue ”.

Now former PSA in Europe business included a large Company owned Dealership business.
Dealerships do make money on interest-style/interest related products so to accommodate PSA business they use Operating profit.
The U.S. is full of laws which bans OEM’s from behaving in such activities so for North America there’s no change.
 
Last edited:

Bili

Official Pilot
Staff member
Joined
May 4, 2018
Messages
1,797
Reaction score
1,476
Got to laugh at Auto news put this as their 5th story behind freaking Subaru….. they never put GM Earnings as 5th story behind Mazda( for example)in fact they would make 5 different pieces base on the same earnings if GM number where as good.
They are biased. I'll refrain from more serious accusations.
 

bill burke

Well-known member
Joined
Dec 9, 2020
Messages
774
Reaction score
662
Good news is good news. This good news.
Added note: Had an opportunity to shop the Grand Cherokee L yesterday at my local dealer. More good news, this product is so impressive, an absolute stunner up close. If this points to a better direction for Stellantis it is clearly, Good News indeed. The interior of the Summit is on par with or better than luxury imports that I have experienced in Mercedes and Audi top models. Really.
 

Deckard Cain

Well-known member
Joined
Oct 8, 2018
Messages
702
Reaction score
539
I'm just a tiny bit jealous that FCA failed so badly in Europe before merging with Stellantis. You can really tell what area excited Marchionne more. Fiat was just a stepping stone.
Very impressive numbers, and they assured that the american branch of FCA is fully independent.

Looking at the presentation, I can't help but feeling happy about the resurrection of Opel though.
Screenshot 2021-08-04 at 16-17-03 Stellantis_H1_21_Results_Presentation pdf.png
Can't help but feel surprised that a stop-gap model like the Corsa, made under pressure to discard the old GM model, is selling so well in Germany and the UK. I believe this bodes extremely well for the Astra - IMO it will sell more than the 308.
Screenshot 2021-08-04 at 16-20-23 Stellantis_H1_21_Results_Presentation pdf.png
I'll be hopeful for Fiat in the future. If Citroen gets a D-segment model I believe Fiat might eventually get one as well. Meanwhile, the 500e is selling like hotcakes and a new B-segment model for 2023? About freaking time.
 

Bili

Official Pilot
Staff member
Joined
May 4, 2018
Messages
1,797
Reaction score
1,476
Added note: Had an opportunity to shop the Grand Cherokee L yesterday at my local dealer. More good news, this product is so impressive, an absolute stunner up close. If this points to a better direction for Stellantis it is clearly, Good News indeed. The interior of the Summit is on par with or better than luxury imports that I have experienced in Mercedes and Audi top models. Really.

Interior on Summit is inspired by Giulia&Stelvio Lusso. @TripleT has Stelvio Lusso. He can talk about it.
 

AlexB

Well-known member
Joined
Jun 7, 2018
Messages
2,054
Reaction score
1,363
Ford North America Q1:$23 billion of revenue with EBIT Margin of 12.8%
EBIT of $2,949 billion
Ford North America Q2 : $15 billion of revenue with EBIT Margin of 1.3%
EBIT of $194 million

Q1 Ford:https://media.ford.com/content/dam/fordmedia/North America/US/2021/04/28/2021-ford-1q.pdf
Q2 Ford :https://media.ford.com/content/dam/fordmedia/North America/US/2021/07/28/2q-2021-ford-financials.pdf

Stellantis North America 6 months 2021 (Q1+Q2 2021 ): Revenue of $38.450 U$D Billion with (to repeat) operating margin of 16.1% .
Operating profit of $6,212 U$D Billion

Just insane good for Mopar.
Here’s Mary!

First Half 2021 GM North America (Q1+Q2 2021)
Revenue of $53.9 billion U$D
EBIT Margin :11.2%
EBIT profit :$6,028 billion U$D
GM U.S. Marketshare: 15.6 (15.2 all of North America)


 
Last edited:

Bili

Official Pilot
Staff member
Joined
May 4, 2018
Messages
1,797
Reaction score
1,476
Here’s Mary!

First Half 2021 GM North America (Q1+Q2 2021)
Revenue of $53.9 billion U$D
EBIT Margin :11.2%
EBIT profit :$6,028 billion U$D
GM U.S. Marketshare: 15.6 (15.2 all of North America)



I would like to post screenshot from the other site. It's crazy. We are living in a parallel universe in comparison to them. :D
 

patfromigh

Well-known member
Joined
Oct 15, 2019
Messages
1,160
Reaction score
1,167
Location
Frostbite Falls, MN
One of the best selling cars in the 1930s is the 1937 Plymouth. If a person examines the engineering closely they will see it is an Airflow in everything but the name and styling. Chrysler the corporation went from strength to strength and passed Ford. They were a solid number 2 behind GM until the 1949 Ford was introduced. Plymouth was the number 3 brand behind Chevy and Ford until the fateful 1957 models. So much for management being too cautious after the Airflow debacle.

Let the other website go their own way. They have a pet narrative and I doubt it will ever change.
 

Deckard Cain

Well-known member
Joined
Oct 8, 2018
Messages
702
Reaction score
539
Those 15% U.S./North America figures are an all time new low for GM marketshare.
I was thinking the same. I'm not sure where GM is headed. They're getting smaller in the US, and also internationally.
 

Users who are viewing this thread

Top