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Car company: Stellantis earns a lot thanks to higher prices

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Opel mother Stellantis has increased profits in the second fiscal year. After Europe, Stellantis also wants to push the electrification of its model range in the USA.

The Opel parent company Stellantis earned significantly more last year and benefited from higher sales prices and savings. Net profit climbed to 16.8 billion euros, a good quarter compared to the previous year, as the world’s fourth largest car company announced on Wednesday. Sales increased by 18 percent to 179.6 billion euros – although Stellantis sold around two percent fewer vehicles with brands such as Peugeot, Fiat, Chrysler and Opel with 5.7 million deliveries. Higher prices and exchange rate effects as a result of the weaker euro provided the greatest impetus.

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The group, which emerged from the merger of Peugeot manufacturer PSA and Fiat Chrysler in early 2021, has its most important business in North America. There, the operating profit margin increased by 0.1 points to 16.4 percent. In Europe it was 9.9 percent after 9.1 percent in the previous year. Opel and its British sister brand Vauxhall were also able to benefit somewhat from rising prices in the EU. Stellantis did not publish any financial details about Opel’s performance.

Stellantis increased sales of fully electric cars by 41 percent to 288,000 vehicles last year. The range of electric cars will be increased from the current 23 to 47 models by the end of 2024. Stellantis has proven the effectiveness of its electrification strategy in Europe, said CEO Carlos Tavares. “We now have the technology, the products, the raw materials and the complete battery ecosystem to do the same transformation in North America.”

Annual premium of 2000 euros

The approximately 13,000 Stellantis employees in Germany will again receive an annual bonus of 2,000 euros. “This is the fourth payment in a row for our employees and the highest amount for a calendar year. The profit sharing has been agreed with the works council and takes into account the goals set at Opel,” HR manager Ralph Wangemann told the German Press Agency on Wednesday.

The payments recognize the performance of the employees over the past year. There was already an equally high bonus for employees in Germany in 2021, but this took a longer period into account. Globally, Stellantis increased employee payouts for 2022 by 200 million to 2 billion euros. This includes profit sharing and variable bonuses. “If the company is doing well, all employees are doing well,” said CEO Tavares.

Stellantis also announced planned dividend payments of 4.2 billion euros and a share buyback program with a volume of 1.5 billion euros on Wednesday. These payments benefit the shareholders directly or indirectly.

Source: Stern

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