Stellantis: the industrial plan will be unveiled at the beginning of 2022
Stellantis
The Stellantis group in the past few hours has formalized the presentation period of its industrial plan. Let's not forget that the company is working on defining the program that will affect the group's next five years, thus setting the guidelines for the electrification program that will characterize the next few years.On the occasion of the presentation of the financial results for the third quarter of 2021, Stellantis has confirmed that the business plan will be unveiled at the beginning of 2022.
credit photo Stellantis
https://www.media.stellantis.com/ To this about the words of Richard Palmer, financial director of Stellantis, who declared:
We are extremely focused on the plan, we are working on it, but we must first complete the organization of the merger: we will formalize the date by end of this year.
Although Stellantis' plan is still unknown, we know that the Alfa Romeo Tonale compact SUV will be one of the first novelties to debut in 2022. The new C-SUV will, in fact, be on the market starting next June. However, it remains to be defined which model the manufacturer plans to bring to market in 2023, probably the CMP-based B-SUV.
As for Lancia, for now we know that in 2024 the new Ypsilon, probably in the form of a small SUV, while 2026 will be the year of the new Lancia Delta, in an unprecedented all-electric version.
Let's not forget, however, that Stellantis will also have to deal with the crisis of chip:
We are seeing some progress on semiconductor supplies, we expect a slight improvement in the fourth quarter. We are working to minimize the impact of the shortage of these components. We believe it will take another 12 months and in any case it will be a gradual improvement and not a leap out of the crisis
Chip shortage cut Stellantis production by 30% in third quarter, caused dip in revenues
© Mandi Wright, Detroit Free Press Stellantis has released its sales and revenue figures for the third quarter of 2021.The semiconductor chip crunch was the key storyline for Stellantis as the automaker reported its vehicle shipments and revenues for the third quarter of 2021.
As expected, the lack of chip supply dinged both numbers, although the automaker pointed to key vehicle launches in its Jeep brand as highlights.
The company, which also counts Ram, Dodge and Chrysler among its brands, reported shipments of 1.1 million vehicles, a 27% drop compared with the third quarter of 2020. Those numbers would have been better, according to a news release Thursday, if not for the limited semiconductor chip supply, which cut planned production in the quarter by 30%, or 600,000 vehicles.
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With fewer vehicles available to ship, revenues were also down. The company reported net revenues of $37.8 billion (32.6 billion euros), a drop of 14% compared with the same period a year ago.
Chief Financial Officer Richard Palmer, in the news release, said the revenues “reflect the success of our recent vehicle launches, including new electrified offerings, combined with significant commercial and industrial actions executed by our teams in response to unfilled semiconductor orders.”
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The shortage, which has affected Ford, General Motors and others across the industry as well, has limited vehicle supply, but it has also pushed up vehicle prices, so the news hasn’t been all bad for automakers. Palmer had noted in May that the company was “learning to function with lower levels of stock and seeing the benefits.”
Video: Intel CEO on global chip shortage: 'We still have some rough road in front of us' (Yahoo! Finance)
North America, however, was one area where the company could benefit from higher inventory levels, Palmer said then. The company has prioritized production of its most profitable vehicles, but the severity of the shortage has even forced the company to cut production at times of key vehicles, such as pickups.
The chip shortage has been a dominant story in the industry this year, but when Palmer made his remarks in May, the company had expected the shortage to ease before the end of 2021.
During a webcast to discuss the quarterly results Thursday, Palmer noted that the production impact for the third quarter was worse than what the company had predicted this summer because of COVID-19 issues affecting suppliers in southeast Asia that continued through September.
Palmer then offered a more optimistic view of the company's semiconductor squeeze for the current quarter.
“Our planning visibility regarding semiconductors continues to be rather limited. However, based on stabilization we’ve seen through the end of Q3 and into October so far, we’re seeing some progress with some key suppliers, and we do expect moderate improvements in supply in Q4 compared to Q3,' he said.
Still, expectations are widespread in the industry that the chip shortage overall will continue well into next year.
More: Ford Motor Co. reports $1.8B net income in Q3, will restore dividend in Q4
More: GM reports 40% drop in third-quarter profits, but expects strong year-end results
The financial numbers released Thursday represent a scaled-down version of quarterly results when compared with the past. Stellantis, which formed from the merger in January of Fiat Chrysler Automobiles and Peugeot maker PSA Group, releases its most complete picture of earnings on a half-year cycle rather than for each quarter.
Despite the uncertainty over chip supply, the company confirmed its full-year guidance for adjusted operating income margin of about 10%. But that “assumes no further deterioration of semiconductor supply,” the company said.
The quarter also featured the launch of the Detroit-made Jeep Grand Cherokee L, as well as the Grand Wagoneer and Wagoneer and the unveiling of a plug-in hybrid electric Grand Cherokee.
Contact Eric D. Lawrence: elawrence@freepress.com. Follow him on Twitter: @_ericdlawrence. Become a subscriber.
This article originally appeared on Detroit Free Press: Chip shortage cut Stellantis production by 30% in third quarter, caused dip in revenues
