Regulatory uncertainty in Europe where growing competition from the Chinese is being felt. Pressing of the new Ford and GM models in the USA. It's not an easy time for a big four-wheeler, but Carlos Tavares, CEO of Stellantis, still managed to achieve the results and confirm the year-end guidance.
Too little for the markets which for now are punishing the group with a decline of more than 3%, the black shirt of Piazza Affari on a day marked by disappointment at the lack of turnaround by the Fed. Yet analysts show they appreciate the results and promises of the giant car.
Stellantis: results for the quarter higher than expected, driving North America
- Sales of electric cars have grown by 41% compared to a year ago.
- Thanks also to this exploit, the third quarter it closed with 42,1 billion in revenues (+29% compared to 2022), thanks to the increase in volumes, the best prices on the market (zero promotions and discounts) and the advantages of the exchange rate, thanks to the strong dollar.
- The chip crisis, which has slowed down the progress of all manufacturers (including Toyota and Volkswagen) has partly "pardoned" Stellantis which was able to deliver 1.281.000 vehicles, 13% more thanks to the greater availability of semiconductors compared to year before, the most critical moment for the market. The increase allowed Stellantis to return in the first nine months of the year close to the levels of the same period of the previous year, with deliveries of 4,21 million vehicles (down 2 percent).
- The positive notes are almost exclusively due to the trend of the American market. In Europe Stellantis suffers, as well as in China, even before the bankruptcy of the joint venture with Gac announced a few days ago. In particular:
- In North America revenues in the first nine months of the year rose from 47 to 63 billion euros, with deliveries increasing from 1,26 to 1,40 million units. The group withstood the impact of competition from the new EV models from Ford and GM, limiting the drop in market share to just 20 points (10,80%).
- In Europe the group lags behind in terms of market share which drops in the Eurozone to 19,2%, down 90 bps on an annual basis. But, despite selling less (1,90 million cars against 2,13) revenues increase (44 billion against 43).
- Same trend in South America: revenues are up, from 7 to 11 billion euro, the market share is down, confirming a strategy that pays more attention to profits than to turnover.
- La China andAsia they remain a difficult market, especially after the break with Gac. Own-brand deliveries in the nine months amounted to 92 units (from 88), accelerating in the third quarter (up 11 percent) thanks to the launches of the new Citroën C3 and Jeep Meridian.
- The brand Maserati in the nine months, thanks to the launch of the new Grecale and the growth of the MC20 super sports car, it compensated for the drop in volumes of the Levante and Ghibli, delivering 16.800 cars (from 16.600) and bringing revenues from 1,39 to 1,57 billion euros.
Analysts appreciate better-than-expected accounts. Equity (buy rating, target at 19 euros) notes that the cars in stock (926 units) are still at a low level, which will make it possible to maintain high sales prices. Also for bestinver the positive note lies in the prices obtained by the group while the drop in market share at this stage "is not a cause for concern" as the group is prioritizing profitability over volumes" Instead, Banca Akros he noted that the third quarter 2022 data “is only slightly above consensus estimates,” thus explaining the morning's sales.
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Stellantis: Tavares focuses on the electric Jeep
From an industrial point of view, however, an electric road map is emerging, despite the well-known perplexities of Carlos Tavares for the choices dictated by the EU. But, after the response (“enthusiastic” according to the CFO Richard Palmer ) in the USA at the Ev-Day dedicated to the electric models of Dodge and, above all, of Jeep, the road is sealed. The iconic brand inherited from FCA aims to become the global leader of Electric SUVs, thanks to four fully electric models to be launched in Europe and North America by 2025. In January, at the next CES in Las Vegas, by now the world's most important four-wheel innovation show, the Ram 1500 Revolution BEV concept will be presented.
Stellantis: agreements and projects in Italy
There is no shortage of news that also involves the Italian component of the company:
- The group has announced a new agreement with partner in Punch Powertrain joint venture to ramp up the production of next-generation electrified dual clutch transmissions (eDCT) for its hybrid electric and plug-in hybrid vehicles. The eDCT production at Stellantis' Mirafiori complex in Turin will complement the current production at the Metz, France plant.
- The district of mirafiori it will also host the headquarters of the first Stellantis Circular Economy Hub. The plant will begin operating with three activities designed to increase production sustainability: vehicle reconditioning and disassembly and component remanufacturing. The Hub will be inaugurated in 2023.
- Finally, Stellantis announced that it has created a global ecosystem that has over 160 co-financed projects and more than 1.000 partners worldwide. The projects concern, among others, autonomous driving, connectivity, industrial production, electrification technologies and advanced propulsion systems.
