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Stellantis Records Profit in First Year After Merger, Beats Set Target

Stellantis has announced an 11.8% profit, over its target of around 10%, generating about $3.6 billion (EUR 3.2 billion) in benefits. The results sum up the automaker's first year after Fiat Chrysler Automobiles and the French PSA Group finalized their transatlantic merger in January 2021.
Ram truck in assembly plant 8 photos
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Stellantis' first year anniversaryStellantis' first year anniversaryStellantis' first year anniversaryStellantis' first year anniversaryStellantis' first year anniversaryStellantis' first year anniversaryStellantis' first year anniversary
The Dutch-based group posted a higher than expected profit for 2021, beating its margin target. The automaker attributed its success to focusing on its most profitable models to ride out the industry-wide chip crisis.

After marking one year, the conglomerate with industrial operations in about 30 countries and more than 130 markets announced it has plans to invest more than EUR 30 billion between 2020 and 2025.

On Wednesday, Carlos Tavares, Chief Executive at Stellantis, said that the results prove the automaker is well-positioned to deliver strong performance even in the most uncertain market environments. Reuters reported the Dutch-based automaker will present a detailed business plan next week.

The FCA and PSA Group merger in January 2021, forming Stellantis, pushed the conglomerate to the world's fourth-largest automotive manufacturer and the world's third-largest in revenue spots.

Stellantis, like most automakers, also experienced a global shortage in microchips as it stepped up to produce more electric cars, costing the group 20% of its planned production last year. As a result, its European market suffered, even though it recorded rising revenues. In North America, where the automaker sells Jeep and Ram trucks, margins rose to a record 16.3%.

Overall group revenues rose 14% totaling $172 billion (EUR 152 billion) from the previous year. Adjusted operating incomes were up 95% to $20 billion (EUR 18 billion). The group is optimistic about 2022 and is expecting double-digits.

Stellantis generated an industrial free cash flow of more than EUR 6 billion in 2021, and proposed to pay out EUR 3.3 billion, equal to EUR 1.05 in ordinary dividends, CNBC reported.

The automaker has also formed alliances with Amazon and Foxconn to fast-track developments of both software and microchips for future production models.
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About the author: Humphrey Bwayo
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Humphrey is a car enthusiast whose love and passion for automobiles extended into collecting, writing, driving, and working on cars. He got his passion for cars from his Dad, who spent thousands of hours working on his old junky 1970 E20 Toyota Corolla. Years later, he would end up doing the same with a series of lemons he’s owned throughout his adult life.
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