Stellantis benefits from improved pricing, product mix in H1 despite chip shortage

Stellantis was able to increase prices and sell more high-end vehicles in the first half, in part because of production constraints from the semiconductor shortage

The automaker on Tuesday reported strong financial results and profits in all its regions after the company's first six months of existence after the merger of PSA Group and Fiat Chrysler Automobiles in January.

The chip shortage resulted in an estimated 700,000 units of lost production in the first half, but like many of its competitors, Stellantis prioritized assembly of the highest-margin models.

North America, a stronghold for FCA, was the most profitable region at Stellantis. Operating margin was 16.1 percent, compared with 3.8 percent in the first half of 2020. Revenue was 32.7 billion euros ($38.9 billion) compared with 22.84 billion on a pro forma basis in 2020, and operating profit was 5.24 billion euros compared with 876 million euros in 2020.

The group delivered 873,000 vehicles in North America, compared with 697,000 in the first half of 2020. Key drivers were record sales for the Ram truck brand, and the Jeep Wrangler 4xe large SUV, which was the best-selling plug-in hybrid vehicle in the U.S. in the second quarter following its launch in March.

Stellantis' Europe region, which includes Russia, had the highest sales volume, with 1.66 million units in the first half compared with 1.12 million in 2020 on a pro forma basis. But despite outselling North America nearly two to one, the Europe region delivered lower revenue of 32.04 billion euros, due to a less-rich model mix. 

Operating margin in Europe was 8.8 percent, compared with 0.9 percent in 2020 on a pro forma basis, on operating profit of 2.83 billion euros, compared with 194 million euros in 2020. 
 

European growth was fueled by higher sales of the Peugeot 2008 small SUV and new vehicles such as the Citroen C4 compact car, the Opel Mokka small SUV and the Fiat New 500 full-electric small car, Stellantis said.

South America was Stellantis’ third-largest region in terms of deliveries. It is the only global region where the automaker is the market leader, with a 23.6 percent share, boosted by models such as the Fiat Strada, which was Brazil’s top-selling vehicle in the first half.

Deliveries in the region increased to 424,000 in the first half, compared with 186,000 in the same period the year before. Revenue grew to 4.94 billion euros from 2.2 billion euros in 2020, and operating profit was 326 million euros, compared with a 63 million euro loss in 2020. Operating margin turned positive at 6.6 percent from a negative 2.9 percent a year before.

In the Middle East and Africa, Stellantis delivered 200,000 units in the first half, compared with 130,000 in the same period in 2020. Revenue increased to 2.55 billion euros from 1.76 billion in 2020, and operating profit rose to 247 million euros from 43 million euros. Operating margin nearly quadrupled to 9.7 percent from 2.4 percent.

Stellantis delivered a positive result in the China, India and Pacific region, even though both PSA Group and Fiat Chrysler have struggled recently in China. Sales grew to 102,000 units in the first half from 75,000 on a pro forma basis in 2020. 

The region had the second-highest operating margin, at 10.9 percent, compared with 5.6 percent in the first half of 2020. Revenue was 1.88 billion euros versus 1.2 billion euros in 2020, and operating profit was 206 million euros versus 67 million euros. 

Maserati, the only luxury brand at Stellantis and the only brand that reports individual results, turned a profit in the first half, with a 3.3 percent operating margin, compared to a negative 23.4 percent margin in the first half of 2020. Revenue was 885 million versus 445 million in 2020, and operating profit was 29 million euros, compared with a 104 million euro loss in 2020.

Deliveries more than doubled to 10,800 units from 5,100 on a pro forma basis in 2020. The Modena, Italy-based brand benefited from improved market mix in China, as well as sales of the mild-hybrid version of the Ghibli midsize sedan.