Stellantis reported double-digit growth in revenue, operating income, and net profits for the first half of 2023, while profitably boosting worldwide sales of battery-electric and low-emission vehicles by 24%.
Net revenue of $109 billion was up 12% compared to the first half of 2022, primarily due to higher shipments. Adjusted operating income increased 11% to $15.65 billion while the company’s net profit increased 37% to $12.1 billion.
Record results ease EV transition
Stellantis CEO Carlos Tavares said the record results enabled continued strategic investments to drive a sustainable road to the company’s transformation of a carbon neutral company.
“Our outstanding performance in the first half of this year supports our long-term sustainability and our ability to achieve the bold ambitions of our Dare Forward 2030 plan.
“It takes a united effort and open mindset across all our employees to embark on our no-compromise transformation journey while protecting the Company from external challenges. I want to express my gratitude to each, and every employee and I am proud to say that the teams are delivering across multiple dimensions. We are well-positioned for the remainder of 2023 and beyond,” Tavares said.
Tavares also told analysts the company is aware of the challenges posed by the ongoing negotiations with the United Auto Workers. However, he noted Stellantis is used to dealing with strong unions and said the company’s goal is to protect its profitability, while enhancing the overall cost competitiveness of the company’s operations in the United States.
Stellantis is now “successfully” executing its Dare Forward 2030 commitments and will be bringing on a full array of new battery electric vehicles in North America and in Europe where the threat from low-cost Chinese are putting pressure at the affordable end of the market with new entries, priced at or below 25,000 euros, Tavares said during a conference call with investors.
Stellantis building strong position in EVs
Stellantis now ranks third in Europe in overall BEV sales and second in the U.S. market for sales of low-emission vehicles, according to Tavares, who has repeatedly expressed reservations about the transition to battery-electric vehicles and its high cost.
The automaker currently has 25 BEVs available now and another 23 launching through 2024, including the battery electric Ram pickup truck.
Marking the start of a new era of electrified products was the unveiling of STLA Medium, the first BEV-by-design global platform for vehicles in the C- and D- segments, which delivers best-in-class range, energy efficiency, embedded power and charging power.
In addition to inaugurating the ACC gigafactory in France, the company recently announced plans to build a second StarPlus Energy gigafactory in the U.S. together with Samsung SDI.
Stellantis Ventures made 11 key investments since its founding in March 2022, including in breakthrough lithium-sulfur EV battery technology from Lyten Inc. that does not use nickel, cobalt, or manganese.
More batteries
Tavares noted Stellantis will have six battery plants in operation by the end of the decade and has taken steps to ensure it has the material the plants need to build batteries through 2027. It is working on plans to fill out the supply chain for batteries through 2027.
The company is currently executing a multifaceted strategy to ensure supply security and drive innovation for critical components necessary for the transition to a sustainable mobility tech company.
Stellantis recently increased its strategic shareholding in Archer Aviation and construction is now well underway on the world’s first high-volume eVTOL aircraft manufacturing facility in Georgia.
Stellantis Financial Services and Leasys organizations are simplifying and enhancing its multi-brand capacity on the financing side.
It has boosted its activity in the U.S. with receivables at approximately $4 billion as of June 30, 2023, and $10 billion target by end of 2024.
Stellantis is the commercial vehicle leader in Europe and South America with 30.9% and 26.8% market share, respectively. The all-new Ram ProMaster BEV, the first BEV van in North America from Stellantis, arrives later this year, complementing the industry-leading hydrogen fuel cell portfolio for the European market.
Stellantis launched Free2move Charge, a 360-degree ecosystem to seamlessly deliver charging and energy management for EV customers in North America and Europe.
Free2move expanded its flexible mobility services and now has approximately 50% of the car sharing market in Europe, with more than 6 million customers in 19 cities across nine countries, and 16 million rides in 2022.