Big increase in profits for parent company Fiat and Peugeot

Big increase in profits for parent company Fiat and Peugeot

Photo: ANP

Car maker Stellantis made more profit last year than in the first year of corona 2020. The parent company of brands such as Fiat, Chrysler, Citroën, Peugeot and Opel produced fewer cars than planned due to a shortage of chips, but compensated for this by buying. More cars from the more expensive segment to sell.

The company, created at the beginning of last year as a result of the merger between Fiat-Chrysler and PSA, achieved sales of 152 billion euros. That is 14 percent more compared to the automaker’s earnings in the previous year, when the factory closures had a significant impact after only for the outbreak of the corona epidemic.

Automakers faced chip shortages last year, in part due to the economy’s rapid recovery from the pandemic and high demand for electronics and storage servers during the lockdown. This meant that the group was able to produce about 1.7 million vehicles less than planned, about one fifth of the total production capacity.

Chip shortages will remain a problem this year, according to chief financial officer Richard Palmer. Even more so are concerns about the scarcity of raw materials, such as certain metals. Still, Stellantis is looking ahead with optimism. Price increases and the sale of better models led to a profit of 13.4 billion euros last year, four times the previous year. In 2022, the company expects a profit margin of at least 10 percent.