Stellantis has posted a €16.8 billion (A$26.1bn) net profit for 2022, and its board has approved a program to buy back company shares this year at a value of up to €1.5 billion (A$2.33bn).

    Net profit was up by 26 per cent while net revenue was up 18 per cent to €179.6 billion (A$279bn). The company is aiming to hit €300 billion (A$466.2bn) by 2030.

    Stellantis, formed in 2021 from a merger between Fiat Chrysler Automobiles and Groupe PSA and including 14 vehicle brands, posted a 29 per cent increase in adjusted operating income (AOI) to €23.3 billion (A$36.2bn).

    That’s a 13 per cent AOI margin, and Stellantis is aiming to sustain these double-digit margins throughout the rest of the decade.

    The company is paying out €2 billion (A$3.1bn) in bonuses to its employees worldwide as part of its variable pay and profit sharing plans. That’s up €200 million (A$310.8 million) on the previous year.

    It’s also paying out a €6.52 billion (A$10.13bn) ordinary dividend to its shareholders, corresponding to €1.34 (A$2.08) per share to be paid, subject to shareholder approval.

    Other results included:

    • Net cash synergies of €7.1 billion (A$11bn), exceeding its €5.0 billion (A$7.77bn) target two years ahead of schedule
    • Industrial free cash flows of €10.8 billion (A$16.78bn), up 78 per cent and putting it on track for its 2030 goal of €20 billion (A$31bn)
    • Software business growth of 25 per cent, on track to reach a 2030 target of €20 billion (A$31bn)
    • A 30 per cent reduction in vehicle defect rates three months after customer delivery

    The company also notes supply levels have been improving.

    The Middle East and Africa was the most profitable region for Stellantis, with profits nearly doubled from 2021 to an AOI margin of 16.7 per cent.

    Stellantis also grew market share in South America, where it’s the automotive leader with 23.2 per cent market share and Fiat is the leading brand.

    Profits increased in China, India and Asia-Pacific, with a record AOI margin of 14.5 per cent.

    Stellantis says sales of its battery-electric vehicle grew to 288,000 units, up 41 per cent.

    It now has 23 EVs on sale, and will more than double this to 47 by the end of 2024 ahead of a 2030 goal of selling five million annually across 75 model lines by 2030.

    The Fiat 500e was Italy’s best-selling EV in 2022, and the Peugeot e-208 was number one in France. The company also says it was number one in EV commercial vehicle sales in Europe and number two in overall EV sales.

    It’s building five gigafactories – three in Europe, two in North America – and will begin producing battery cells in the second half of 2023.

    The company has also been expanding its range of plug-in hybrids, and the Jeep Wrangler 4xe was the best-selling PHEV in both the US and Canada.

    Development of its STLA Brain, STLA SmartCockpit and STLA AutoDrive systems are progressing, with prototype road testing to begin in the second half of 2023 and production to begin at the end of 2024.

    Stellantis continues to maintain partnerships with Amazon, Foxconn and Qualcomm to develop this technology.

    William Stopford

    William Stopford is an automotive journalist based in Brisbane, Australia. William is a Business/Journalism graduate from the Queensland University of Technology who loves to travel, briefly lived in the US, and has a particular interest in the American car industry.

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