Stellantis signals electric goals

Stellantis, recently formed by a merger of Peugeot-maker PSA and Fiat Chrysler, is looking beyond savings and aiming to be a key player in the race to produce more electric vehicles (EVs).

The world’s fourth largest carmaker, with 14 brands including Jeep and Maserati, aims to deliver more than €5 billion ($8.3b) a year in savings through the coupling.

At the same time, the group has announced plans to have fully-electric or hybrid versions of all of its vehicles available in Europe by 2025.

Carlos Tavares, chief executive, says: “This is not a crisis merger. This is a merger that is going to open new opportunities for a company that is sound, with talented people ... who do not want to be cornered in a legacy or a dinosaur position.”

His comments came during an analyst conference where Stellantis forecast higher profitability for 2021 and PSA and Fiat, which merged in January this year, reported better-than-expected results for 2020.

Combined adjusted earnings before interest and tax (EBIT) amounted to €7.1b at the group last year.

The carmaker is targeting an adjusted operating profit margin of 5.5 per cent to 7.5 per cent this year, reports Reuters.

That compares with a 5.3 per cent aggregated margin last year – 4.3 per cent at Fiat Chrysler and 7.1 per cent at PSA.

Tavares, pictured, says the guidance is based on no more major lockdowns because of the Covid-19 pandemic, but he warns the rising price of raw materials and a global shortage of semiconductors may impact on the group’s performance.

He notes Stellantis is trying to find alternative chip supplies and describes the issue as a “big unknown” for revenues that may not be fully resolved by the second half of 2021.