Stellantis at Home on Global Stage, CEO Tavares Says

In the two years since it was formed from the combination of Peugeot and Fiat Chrysler, Stellantis has demonstrated resilience as it transitions from its pre-merger position as a “second-tier” automaker to being a leader in technology and mobility with state-of-the-art and forward looking commitment to electric vehicles, CEO Carlos Tavares says.

And the CEO also wants the automaker to be vertically integrated into lending, thus Stellantis is building an all-new finance company in North America, revamping its distribution system for dealers across Europe.

Discussing the company’s financial report for 2022 with analysts, highlighted by a 26% increase in net profit, Tavares says Stellantis is also advancing geographically, building a profitable, quickly growing “third leg” in the Middle East, Africa and South America where it now has strong operations.

“Fiat is the leading brand in South America,” Tavares (pictured, below left) notes, while Jeep is  planting deep roots into the region since first entering South America six years ago.

Carlos Tavares

The expectation is that by the end of the decade, revenue from Stellantis’ “overseas” operations could equal the revenue from its well-established operations in Europe and North America, which also posted strong 2022 results despite challenges such as inflation and supply chain disruptions.

Tavares says the company is seeing inflation  abate in Europe and North America following hikes in interest rates by the central banks.

Stellantis, Tavares says, is on pace to deliver on its Dare Forward 2030 strategic commitments.

Launched in March 2022, Dare Forward 2030 is built upon three fundamental pillars meant to help the company reach its goal of doubling net revenue to €300 billion ($318 billion) by 2030 compared with 2021.

In 2022, Stellantis’ revenues increased 18% to €179 billion ($190 billion) despite a 2% drop in unit sales worldwide. The company’s net profit surged 26% thanks to savings of €7 billion ($7.4 billion) related to the merger, Tavares says.

The 2022 performance raised profit-sharing checks for UAW-represented workers to their highest levels in about 35 years. Based on compensated hours, checks could reach $14,760, higher than profit-sharing for General Motors or Ford hourly employees and $900 more than Stellantis workers received last year.

As it seeks to become the leader in customer satisfaction, the CEO says Stellantis achieved a 30% reduction in vehicle defect rates reported in the first three months of ownership.  The company has some work to do in quality. In last year’s J.D. Power Initial Quality Study, reported in June, the Dodge brand ranked high in quality at No.2 overall, but Ram, Jeep, Chrysler, Maserati and Alfa Romeo were all well below industry average.

Stellantis has set a goal of achieving net zero carbon emissions by 2038 with an intermediate target of cutting carbon emissions in half by 2030, compared with  2021 levels. In 2022, the company reduced its industrial and real estate carbon footprint by 11%.

While Tavares has openly expressed skepticism about the development of demand for battery-electric vehicles, he emphasizes to analysts the company is aggressively pursuing plans for electrification.

The automaker has no choice but to go along and attempt to protect profit margins, he says, because “voters and parliaments” in key markets across the globe have decided electrification is required to curb climate change.

Stellantis’ electrification push accelerated in 2022 with a 41% year-over-year increase in global BEV sales to 288,000.With 23 BEV models now in Stellantis showrooms, the company plans for its BEV portfolio to more than double to 47 by the end of 2024, supporting its longer objective of having more than 75 BEVs globally and global BEV sales of 5 million by 2030.

Tavares says the Jeep brand, the company’s one global nameplate, is launching the first phase of its BEV offensive with the launch of the Jeep Avenger, the first-ever fully electric Jeep SUV.

It also is preparing the Jeep Recon and Wagoneer S for the North American and other major global markets.

Meanwhile, the Ram brand has unveiled the prototype of its highly anticipated all-new, all-electric Ram 1500  REV production version that will be available in the fourth quarter of 2024.

Stellantis’ Fiat New 500 is the top-selling BEV in Italy and the Peugeot e-208 is the leader in France. The Jeep Wrangler 4xe is the top-selling plug-in hybrid electric vehicle in both the U.S. and Canada. The automaker also is preparing to launch its first battery-electric vehicle in the U.S., the Ram ProMaster BEV, this year.

“The execution machine of Stellantis is moving fast forward,” Tavares says. “Stellantis is going to be one of the big winners of this big transformation.”