In the first year of merger, Stellantis profits $15 billion

On Wednesday, Stellantis posted their 2021 financial results, denoting the company’s first ‘full’ year of business since Fiat Chrysler Automobiles and PSA Group merged in January 2021. Profits nearly tripled, showing $15 billion US of net profit. Although the merger wrapped up on Jan 17, financials are reported as if the merger was completed at the beginning of the month.

All told, net revenues increased by 14% on the year, tallying up to $172 billion USD. The merger, originally focused on creating synergies to reduce costs, resulted in a $3.6 billion-dollar benefit for the company. Stellantis maintains available liquidity of just over $70 billion, and shareholders can expect to see their share of a $3.7 billion-dollar dividend payout.

Carlos Tavares remarked in the news release, “Today’s record results prove that Stellantis is well-positioned to deliver strong performance, even in the most uncertain market environments. I warmly thank all Stellantis employees across our regions, brands, and functions for their contribution to building our new company powered by its diversity. I take this opportunity to also thank the management team for their relentless efforts as we faced and overcame intense headwinds. Together, we are focused on executing our plans as we race to become a sustainable mobility tech company.”

The company’s earnings put them in the middle spot of earnings among the Big Three. Ford’s 2021 full-year earnings were reported at $17.9 billion net income and General Motors rang in at $10.0 billion over the year. Of course, that includes global earnings, of which Stellantis has a larger presence on the other continents.

In the press release, Stellantis indicated commercial vehicle growth in Europe and South America. Worldwide, the company “achieved its highest-ever worldwide pickup sales with approximately 1 million vehicles sold”.

Nearly one dozen new models were released internationally through the past year among their Citroën, Fiat, DS, Jeep, Maserati, Opel, and Peugeot brands. Looking forward, Stellantis has committed more than $35 billion in investments for electrification through 2025.

Profit shared among employees

Due to remarkable sales for the year and the “synergies” from the merger, Stellantis was able to increase their profit sharing for direct, permanent workers. More than $2.1 billion US will be distributed to employees, an increase of more than $870 million compared to the payouts from the companies before the merger. 

As an example, Stellantis employees represented by the United Auto Workers union will receive $14,670 each. It’s the highest profit-sharing amount ever paid out since the 35-year-old practice of payout began. 

“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.”

Did you enjoy this article from Jason Unrau? Read other articles on CBT News here. Please share your thoughts, comments, or questions regarding this topic by submitting a letter to the editor here, or connect with us at newsroom@cbtnews.com.