Higher prices and stabilizing supply chains allowed Stellantis to push first-quarter revenues and shipments ahead of their 2022 numbers.
The automaker reported net revenues of approximately €47.2 billion ($52 billion) for the first quarter, up 14% from its earnings in 2022. Stellantis attributed this gain to higher pricing and more vehicle deliveries, the latter of which climbed 7% year-over-year to reach a total of 1,476,000 units. The company reported fewer difficulties in semiconductor procurement, a factor which allowed it to accelerate production after several years of unstable supply chains. Its electric vehicle segment grew 22%, thanks to the brand’s expanding lineup of products. Currently, the automaker plans to launch nine new electric models in 2023, with an additional 15 planned for next year.
In the U.S., the automaker delivered 509,000 units, an increase of 29,000 over Q1 2022. The Jeep Compass saw twice the number of shipments, softening the blow from Stellantis’s decision to stop building the Grand Cherokee. Revenue climbed 10% in North America, although the brand believes an “unfavorable” mix could be reducing earnings. In April, the company reported that quarterly retail sales had declined 9% in the region.
On the whole, Stellantis is still on track to meet the targets set in the Dare Forward 2030 plan, which include ambitious profitability and electrification targets. While EVs continue to see sub-optimal demand, CEO Carlos Tavares has refrained from making price cuts to push consumer interest, even as Tesla continues lowering costs across its lineup. However, as the industry moves closer to its long-term goals, affordability issues may become unavoidable, stifling demand even as manufacturers fill inventories with new cars.