Stellantis recorded strong full-year earnings for 2023 on a global scale but struggled to maintain profitability in the U.S. following the United Auto Workers (UAW) strike last October.
The automaker recorded annual worldwide revenues of $203.4 billion, an increase of 6% from the year before. Net profit rose 11% to $20 billion, fueled by stable demand and high prices, which Stellantis executives have steadfastly maintained must be kept at their current level. The brand’s average transaction price of $53,000 is higher than that of General Motors and Ford.
However, while the automaker’s global performance was in proportion to that of other brands, the U.S. market continued to pose challenges for Stellantis throughout 2023. Net profits in North America declined 10% in the last six months of the year compared to the first. On an annual basis, the company reported a net operating income of $10.96 billion for the second half of 2023, down 9.8% from 2022. The drop occurred after a 37% net profit increase in the year’s first half.
While the decline was primarily driven by the UAW strike, which not only suspended production of several profitable models but also resulted in a massive increase in labor costs following the conclusion of negotiations, the car manufacturer’s sales in the U.S. declined by 1%. Most automakers, including Stellantis’ prime competitors in the region Ford and General Motors, reported sales increases in 2023, citing improving supply and stable demand. Last year was the first time that Hyundai sold more cars in North America than Stellantis.
Stellantis has struggled to improve sales in North America since its creation in 2021, although CEO Carlos Tavares said he might allow executives in the country to offer more incentives and discounts to drive demand. “Let’s see one year down the road, [if] we can meet again and say it works,” he commented to reporters.
