Stellantis 1st half earnings and conference call

[AlexB]

Conference call is at 8:00 AM EDT (Michigan time) : https://channel.royalcast.com/landingpage/stellantis-en/20230726_1/

Events and Presentations

Information on investor events for Stellantis, including calendar of upcoming events, financial results and analyst presentations

www.stellantis.com

Now
Europe:


South America and Middle East
Rest (Maserati and Asian operations ):



Inventory and Cash Flow walk:

https://www.stellantis.com/content/dam/stellantis-corporate/investors/events-and-presentations/presentations/Stellantis-H1-2023-Results-Presentation.pdf

Batteries -related:

 

[AlexB]

North America (former "Chrysler business") is here:Mopar 1st half of 2023 makes $8.9 billion pre-tax profit

 

[cygnus]

This is why I'm not buying another vehicle from this company. 17% profit margins - yeah, no thanks.

 

[pumadog]

Seems like there has been some European conference call already. Some reports mention it.

 

[AlexB]

Going through the replay of the Stellantis call: Carlos opens by thanking the employees of Stellantis and stated the company fully in focus on dealing with the headwinds, and execute the Dare Forward business plan.

 

[AlexB]

Global LEV sales (PHEV) up 28%
Global BEV sales up 24% (only Europe really).

 

[AlexB]

Carlos stated in the United States Stellantis needs to get more mid trim levels into the dealer stocks, and that action should improve marketshare in the United States.

 

[AlexB]

Carlos praised the Middle East,Africia Unit, and stated they hope to overtake Toyota in the region as Stellantis is number 2.

 

[AlexB]

Carlos stated South America combine with Middle East & Africa will overtake Europe in financial importance for Stellantis.

 

[AlexB]

Carlos talking Citroen C3,
Ram 1500 and Wrangler refreshing are coming, and will give Stellantis pricing power.

 

[AlexB]

Analyst ask a question about price between the United States and Europe.
Carlos said the company runs a different pricing playbook for each Europe and United States.
In United States, the company is about maximizing pricing, likes being the priciest in segments which is a reflection of the Company's effort it puts into the product.
Therefore, Stellantis should be rewarded with the high ATP outta of respect.
@cygnus

 

[AlexB]

To questions about EV benchmark and EV Margins

:
Carlos stated Stellantis benchmarks for EV's are Tesla & Hyundai-Kia (especially for STLA Medium).

Carlos stated EV's pricing are NOT at "Middle Class levels", and Tesla's pricing is not Middle Class.
Carlos stated we will see everybody margins for EV's once pricing at "Middle Class levels".

Carlos stated Stellantis EV's are profitable, have profitability built-in, but they are NOT as profitable as a gasoline ICE Stellantis vehicle. However, Stellantis "don't do Red-Ink EV's like our Detroit peers do" hence the margins.
Carlos stated the company's goals is for Stellantis EV's to be every bit as profitable as Stellantis ICE vehicle, but you must figure out "Middle Class levels", and therefore consistent focus on Company's cost as well the Technology cost.

 

[AlexB]

Carlos stated sourcing parts from lower cost areas of Europe is part of the company strategy to fend of Chinese made EV's in European market.

 

[JasonB]

Carlos stated sourcing parts from lower cost areas of Europe is part of the company strategy to fend of Chinese made EV's in European market.

Thank you for all this.

 

[pumadog]

@AlexB thanks for the summary!

 

[Deckard Cain]

This is why I'm not buying another vehicle from this company. 17% profit margins - yeah, no thanks.

But I thought you loved to be ripped off just to come to this forum to bash the europeans because our region has lower profit margins!

 

[Deckard Cain]

Carlos stated South America combine with Middle East & Africa will overtake Europe in financial importance for Stellantis.

Two regions being bigger than one is nothing to be surprised at.
I am curious to the lack of questions about how they think the high interest rates will impact vehicles with high ATPs in the US.

 

[Deckard Cain]

To questions about EV benchmark and EV Margins

:
Carlos stated Stellantis benchmarks for EV's are Tesla & Hyundai-Kia (especially for STLA Medium).

Carlos stated EV's pricing are NOT at "Middle Class levels", and Tesla's pricing is not Middle Class.
Carlos stated we will see everybody margins for EV's once pricing at "Middle Class levels".

Carlos stated Stellantis EV's are profitable, have profitability built-in, but they are NOT as profitable as a gasoline ICE Stellantis vehicle. However, Stellantis "don't do Red-Ink EV's like our Detroit peers do" hence the margins.
Carlos stated the company's goals is for Stellantis EV's to be every bit as profitable as Stellantis ICE vehicle, but you must figure out "Middle Class levels", and therefore consistent focus on Company's cost as well the Technology cost.

Benchmarking against Tesla and Hyundai/KIA is good, since they do make the best EVs.
But Tesla does have pricing at middle class levels for the main countries in Western Europe.

 

[TripleT]

Benchmarking against Tesla and Hyundai/KIA is good, since they do make the best EVs.
But Tesla does have pricing at middle class levels for the main countries in Western Europe.

well the at least are the best to Steal

 

[AlexB]

But I thought you loved to be ripped off just to come to this forum to bash the europeans because our region has lower profit margins!

It was strong two quarters for Europe, which still had delivery issues (of finished vehicles), and if anything Carlos has proven to make profits in Europe.
Also Stellantis has yet to full rollout the CMP vehicles to the FCA brands (only the Avenger is out), in past conference calls they mention the CMP models as a big cost savings for Europe unit.