FRANKFURT, GERMANY (AP) – Automaker Stellantis said yesterday that it made EUR13.4 billion (USD15.2 billion) in its first year after it was formed from the merger of Fiat Chrysler Automobiles and PSA Group.
The earnings nearly tripled profits compared with its pre-merger existence as two separate companies, as the maker of Jeep, Opel and Peugeot vehicles exploited cost efficiencies from combining the businesses.
The result compared to a combined EUR4.79 billion for the separate companies in 2020 before the merger, which took effect on January 17, 2021.
Revenue for the combined business rose 14 per cent, to EUR152 billion.
CEO Carlos Tavares said the results “prove that Stellantis is well positioned to deliver strong performance” and had overcome “intense headwinds” during the year.
Automakers have struggled with shortages of key parts such as semiconductor electronic components and rising costs for raw materials as the global rebound from the worst of the coronavirus pandemic brings more demand.
The company said the benefits of the merger were worth some EUR3.2 billion during the year. The company accelerated its rollout of battery-powered vehicles, with sales of low-emission vehicles reaching 388,000 – an increase of 160 per cent.
Strict environmental regulations in Europe and China are pushing automakers to roll out more electric vehicles with longer range. Stellantis started production of a hydrogen fuel cell commercial van under its Opel brand in December.
Stellantis’ other brands include Chrysler, Citroen, DS, Fiat, Maserati, Ram and Vauxhall.