Global automaker Stellantis revealed a record-breaking year for net profit, and nearly $15,000 per qualifying employee in profit-shares.
The brand, a result of a 2021 merger between Fiat Chrysler and the French PSA Group, posted $17.9 billion in net profit, a 26% year-over-year increase and the highest in its short history. In its report, Stellantis attributed its growth to “strong net pricing, favorable vehicle mix and positive FX translation effects.” The performance will allow the company to offer a $14,760 profit-share payout to its U.S. employees who are represented by the United Auto Workers union. However, this represents a less than 1% increase from 2021, when employees received $14,670, and will differ between staff members based on hours worked.
CEO Carlos Tavares also suggested that the company’s net profit gains were also driven by the automaker’s electrification strategy. The company sold 288,000 electric vehicles in 2022, an increase of 41%. Virtually all brands reported escalating EV sales throughout the year, as they introduced new products at multiple price points. At present, Stellantis has 23 electric models, with another 9 expected to arrive in 2023. By 2030, the brand hopes to have 75 EVs available for purchase, with a sales target of 5 million units.
Stellantis performance stands out from other automakers whose encountered mixed results in 2022. Although some companies broke net profit or delivery records, these achievements were often cancelled out by missed sales targets and high operating costs. Supply chain disruptions, while less frequent, still complicate automaker efforts to not only supply dealers with high demand models in desirable trims, but also to pursue the industry’s electrification ambitions. Whether 2023 will bring relief or further challenges remains to be seen.
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