April 26, 2024

Stellantis revenue up 12%

MILAN (AP) — Carmaker Stellantis on May 5 reported higher first-quarter revenues despite lower deliveries, with no significant impact from the closure of its Russian plant due to sanctions.

Stellantis, the world’s fourth-largest car company formed last year from the merger of PSA Peugeot and Fiat Chrysler Automobiles, said first-quarter revenue rose 12% to $44 billion, despite a 12% decline in shipments.

Chief Financial Officer Richard Palmer credited pricing policies, vehicle mix and favorable foreign exchange rates for the results. The company does not provide full quarterly earnings for the first and third quarters.

Palmer said the impact of the Russia plant closure last month was minimal both in terms of commercial sales and supply chain exposure. Stellantis produces vehicles under the Opel and Peugeot brands at the plant, which is co-owned by Japanese carmaker Mitsubishi.

“It is relatively low exposure for us,” Palmer said, noting that that the volumes in the plant are low and the vehicles produced there are also made elsewhere in Europe. “It is not something that represents a huge risk for us, frankly, or any sort of risk.”

Strong North American revenues, up 30% to $22 billion, helped offset lower revenues in Europe that were impacted by interruptions in supply chain deliveries of semiconductors. European shipments dropped by nearly one-quarter, and revenues were down 9% to $15 billion.

South America, the Middle East and Asia also suffered lower shipments due to the semiconductor delivery interruptions, but posted higher revenues due to mostly to pricing policies.