Stellantis: Huge Profit and a Very Electric Future Plan

The Stellantis group posted €13.35 billion in profits in 2021 and will launch 17 electrified models in 2022-2023.

The merger between the Peugeot (PSA) and Fiat-Chrysler (FCA) groups was meant to create an automotive giant. Born in January 2021, it first consolidated its financial structure and revealed even better results than in 2020.

High-End Margins

Stellantis therefore reported a net profit of €13.35 billion for 2021, triple that of the previous year. This result exceeded all expectations and far outperformed its French rival Renault. It occurs amidst a revenue increase of only 14% (€152.2 billion), and notably against relatively stable sales. The manufacturer sold 5.9 million vehicles worldwide last year, a 4% increase.

It achieved an operating margin of 11.8%, a figure close to premium brands. Mercedes posts 12.7% (pre-results), while Audi and BMW hover around 10% (estimates). As a consequence of the financial upswing, Stellantis will distribute a large share of €3.3 billion to shareholders. In France, the group is offering a minimum bonus of €4,000 to the lowest-paid employees (versus €3,000 in 2020).

Cost Reduction as a Profit Driver

This bold strategy heavily relies on cost sharing. Carlos Tavares, CEO since 2014, has worked tirelessly on this. Model development sharing had already begun between PSA and Opel before PSA acquired Opel in 2017.

Shared platforms have followed suit: CMP for small and compact cars (Peugeot 208, Opel Corsa, Citroën C4, DS 3 Crossback), EMP for sedans (Peugeot 308, DS 4, Opel Grandland). Additionally, Tavares is pushing average prices upward by attracting customers with premium trims.

This will accelerate with the FCA union. New Fiat Scudo/Ulysse and Ram ProMaster vans are based on PSA van platforms, and the upcoming compact SUV will share components with Alfa Romeo and Jeep. Electric models will be even more shared. During an “EV Day” in July 2021, Stellantis announced four new STLA platforms dedicated to electric propulsion:

• Small: future e-208, ë-C3, electric models for Opel, Fiat, and Lancia
• Medium: Peugeot e-3008, Alfa Romeo, DS, Jeep Compass, Chrysler Airflow
• Large: Alfa Romeo Giulia/Stelvio, Chrysler, Dodge, Jeep Cherokee, Ram
• Frame: Pickups and heavy utility vehicles

The “easy” sharing of high-volume models doesn’t prevent the group from achieving margins even with Maserati (5.1%). The trident badge is restarting a new lineup with the sporty MC20, which has increased its sales by 41%.

17 New Electrified Models in 2022 and 2023

Stellantis’ new models will follow one after another, including 100% electric and plug-in hybrid versions. The surprise includes two new electric Citroëns, alongside the well-known C5X Hybrid crossover.

Fiat is planning a compact electric SUV shared with Jeep, which just launched its hybrid Grand Cherokee. For utilities, the Italian brand will also offer the Scudo and a new utility vehicle, possibly based on PSA’s light commercial platforms.

The Peugeot e-308 electric sedan and wagon will debut in 2023, along with the Opel Astra. Plug-in hybrid versions will also be available from this year, and an entirely new Peugeot 4008 will share the same powertrain.

Even Maserati will go electric with the duo GranTurismo/GranCabrio and the Grecale SUV in 2023. On the other side of the Atlantic, the Alfa Romeo Tonale plug-in hybrid will have a Dodge Hornet cousin.

A Comprehensive Plan on March 1st

Patience for the following years, as Stellantis prepares a long-term plan. It will be unveiled next week, on March 1st. We expect to learn details about the future of certain brands and technologies. The future of Alfa Romeo, transitioning to 100% electric by 2027, or the partnership with Amazon have already been announced.

We are, for example, awaiting news about Peugeot and the non-listed electric 3008, initially scheduled for 2023. Same for Citroën, which has had no clear roadmap for several years.

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