Stellantis announced earlier this morning, that the automaker made €13.4 billion ($15.2 billion) in its first year after the merger of Fiat Chrysler Automobiles (FCA) and Groupe PSA (PSA). What is interesting about the earnings report is that the automaker almost tripled its profits compared to pre-merger identities (€4.8 billion or $5.5 billion). Stellantis says that the merger helped the cost efficiencies of its 14 brands, being together and working off of each other.
The automaker announced an exceptional financial performance, despite facing challenges of the global semiconductor shortage and continuing regulations in part to the COVID-19 pandemic. Although Stellantis is selling fewer vehicles globally, the vehicles are going for more money and bringing in more profit. The situation has also eliminated most of the heavy rebates on the hoods of slow-selling vehicles, as the demand for vehicles has surpassed available inventory.
The company posted revenues of €152 billion ($172.4 billion), an increase of €134 billion ($152 billion), during the prior year. The automaker also reported an adjusted operating income of €18 billion ($20 billion), up from €9.2 billion ($10.4 billion), with a margin of 11.8%.
“Employees are the heart of Stellantis. It is thanks to their continued focus on execution and excellence that we were able to achieve record results in our first year as Stellantis,” said Carlos Tavares, Stellantis CEO. “Every Stellantis employee took on an extraordinary task in 2021 of combining two automakers while facing serious external challenges. Our goal is that all employees benefit from the company’s profitable growth. We are pleased to reward and thank our team members for their tireless commitment.”
For its North American United Auto Workers (UAW) workforce, the union employees will receive a profit-sharing check of $14,670 (before taxes) due to the results in 2021. It marks the largest profit-sharing amount that the Chrysler Group has had in the past 35 years. That is an increase of $6,660 over last year.
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