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Stellantis reports ‘outstanding’ 11.4% operating margin in H1 2021

Carlos Tavares

Stellantis has reported an “outstanding” 9.5ppt year-on-year improvement in operating income margin, to 11.4%, in the first half of 2021.

The car manufacturing giant – the result of a merger between the PSA Group and FCA Group officially completed at the start of this year – revealed the result in pro forma financial results published this morning (August 3).

Its improved margins came as revenues rose 270.2% to £72.61 billion (H1 2020: £19.61bn) and net profits rose from £797m to £5.8bn.

The improved performance prompted an upgraded full-year outlook featuring a forecasted adjusted operating income margin of 10%, Although a statement said the projection “assumes no further deterioration of semiconductor supply and no further significant lockdowns in Europe and US”.

In a statement issued alongside the H1 trading statement, Stellantis chief executive Carlos Tavares said: “I would like to thank warmly all Stellantis employees for their outstanding focus on operational excellence and synergies execution that have led the company to achieve very strong H1 financial results.

“While delivering this strong operational performance the company also made significant progress on strategic matters related to electrification acceleration and software, which are fundamental pillars of our strategy.”

Last month AM reported on Stellantis’ impending retail network restructure and shift to agency retail model franchise contracts.

Stellantis confirmed that retail franchisees of its Alfa Romeo and DS car brands and all light commercial vehicle (LCV) operations will be subject to agency model sales contracts from 2023.

The news came just over a month after the OEM revealed it would issue all of its UK and European franchised car retail partners with two-year termination notices as part of a reorganisation of its distribution networks ahead of the introduction of new Block Exemption rules.

Franchisees told AM that all franchised points would be categorised A, B and C, with A secure, Be under discussion and C set for termination.

But a Stellantis spokesperson told AM that “all involved stakeholders will benefit from these changes”.

Today’s H1 statement revealed that Stellantis was moving fast to accelerate its electric vehicle (EV) product plan and also its development of vertical take-off flying mobility solutions.

It plans to launch 11 EVs and 10 plug-in hybrid vehicles (PHEV) over the next 24 months and complete the roll-out of its fully-electrified LCV range in Europe, along with hydrogen fuel cell medium vans, by end of 2021.

Stellantis also plans to spend £25bn to establish a new generation of electrified vehicles and batteries in the next five years.

Ellesmere Port is set to be transformed into the Stellantis’ first purely BEV factory from late 2022.

A par6tnership with Archer, meanwhile, will create vertical take-off vehicles, meanwhile, while a second strategic partnership, with Engie EPS, will aim to develop fast-charging networks.

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