Tag: Stellantis

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Cox Automotive Analysis: Stellantis’ Q4 2022 Market Performance

Cox Automotive Analysis: Stellantis’ Q4 2022 Market Performance

Stellantis has steered skillfully through the global computer chip shortage, maintaining the most abundant vehicle inventory in the U.S. auto industry for the past year while other automakers struggled with skimpy supply. Still, Stellantis posted a decline in U.S. sales in the fourth quarter while also cutting incentives. Its average transaction price rose to over $55,000, thanks mostly to a pair of pricey new Jeeps and strong Dodge pricing increases.

Europe and the U.S. are Stellantis’ most important markets. Here are some data points from Cox Automotive on Stellantis’ U.S. Q4 market performance.

Stellantis’ Q4 Sales Pulled Down by Jeep

Stellantis Q4 sales totaled 347,649 vehicles, down 15.5{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502} from Q4 2021. That compares with a high of 542,519 sales in pre-pandemic Q4 2019.

STELLANTIS U.S. SALES PERFORMANCE FOR Q4 2022

Jeep, Stellantis’ highest-volume brand, saw a significant sales decline of 18{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502} to 143,317 vehicles. That was its lowest sales for the quarter in at least six years. Pre-pandemic, Jeep sold over 200,000 in the quarter.

Almost all Jeep models saw declines except for the Compass and Wagoneer, which saw year-over-year sales increases of 9{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502} and 12{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502}, respectively. The biggest drop was the Grand Cherokee at a 32{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502} decline or 50,800 units, followed closely by the Renegade with a decline of 27{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502}. The newer Grand Wagoneer and Wrangler were both down 14{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502} year over year in Q4.

Ram sales dropped by 14.5{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502} to 129,873 units, the lowest sales for the quarter in six years. The volume-leading Ram 1500 pickup truck saw a decline of 22{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502} to 105,255 units. Promaster van sales increased 33{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502} to 18,905.

Dodge sales jumped by 15{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502} to 46,278. All three of the brand’s models gained in the quarter: Charger was up 3{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502} to 17,414 cars; Durango sales climbed 22{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502} to 15,890 SUVs, and Challenger rose 28{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502} to 12,966 units. The Charger and Challenger are in their final year in their current form, and Dodge is selling special editions to commemorate their final run.

The Chrysler brand, with only two models, had the steepest decline of all major Stellantis brands, with a 39{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502} drop to 25,052 units, driven by the 42{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502} drop in Pacifica minivan sales. Sales of the 300 sedan, popular with fleets, were up 15{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502} to 2,300 units.

Alfa Romeo sales fell 25{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502} to 3,031 vehicles. Fiat had quarterly sales of a mere 118 units of the 500X, the only model sold in the U.S., down 56{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502} from a year ago.

With the sales drop, the total Stellantis market share was 9.6{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502}, the first time the automaker’s share dropped below 11{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502} for the quarter in the past several years. Market share slipped for Stellantis’ highest-volume brands. Jeep share was 4{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502}, down more than a full percentage point from a year ago. Ram dipped one percentage point to 3.6{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502} and Chrysler was down 0.5 points to 0.7{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502}.

Incentive Spending Slashed to Lowest Level in Six Years

Stellantis slashed incentive spending by 31{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502} in Q4 2022 compared to the prior year. Its average incentive was $1,658 per vehicle, according to Cox Automotive calculations. That’s the lowest in six years by a wide margin. In the pre-pandemic Q4 2019, Stellantis spent over $5,000 per vehicle on incentives.

STELLANTIS U.S. INCENTIVES FOR Q4 2022

Stellantis significantly cut incentives for all brands. Chrysler incentives were down over 90{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502} to just $144, marking the first time incentives for the brand were under $1,000 for the quarter. Incentives for Jeep and Ram were down 53{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502} and 38{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502}, respectively. Alfa Romeo incentives were down 18{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502}, and the Ram brand saw the lowest decline with a drop of 6{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502}.

Average Transaction Prices Jump to Over $55,000

Stellantis’ average transaction price (ATP) jumped 5{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502} to $55,281, according to Cox Automotive calculations. By comparison, Stellantis’ ATP was $38,458 in Q4 2017.

STELLANTIS U.S. AVERAGE TRANSACTION PRICES FOR Q4 2022

Ram generates the highest ATPs, up 2{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502} to $59,903. The Ram 1500 got a 4{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502} boost to $63,363. Promaster gained 16{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502} to $48,309.

Jeep’s ATP jumped 7{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502} to $53,968 on the strength of the new higher-priced Wagoneer, with its ATP of $74,461, and even pricier Grand Wagoneer at $95,152. Grand Cherokee  had a nearly 12{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502} gain in ATP to $57,262. ATPs for Wrangler and Gladiator also rose.

All three Dodge models had healthy increases, putting the brand’s ATP at $50,369, up 9.5{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502} from a year ago. The Charger had the biggest increase, up 13{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502} to $47,118. The Durango had the highest ATP for Dodge at $53,431, up 4{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502}.

The Chrysler Pacifica had a 6{515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502} increase in its ATP, pushing it to $48,976.

Rebecca Rydzewski is a research manager for economic and industry insights for Cox Automotive.

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Stellantis 2022 earnings strong despite logistics, chip problems

Stellantis 2022 earnings strong despite logistics, chip problems

Stellantis unveiled a share buyback of as a lot as 1.5 billion euros ($1.6 billion) subsequent Mercedes-Benz and BMW in returning hard cash to shareholders immediately after potent 2022 benefits on the back again of higher auto rates and pent-up demand from customers.

Stellantis expects one more year of double-digit returns as vehicle selling price raises slow, chip shortages simplicity and generation picks up, the automaker said Wednesday.

The company’s working return rose to 13 {515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502} past year, beating analysts’ expectations.

“Price increases ended up sizeable in 2022 and they will be lessen in 2023,” Chief Economical Officer Richard Palmer stated on a phone with reporters. “The obstacle for 2023 is to offset inflation with pricing, but also with an enhancement in the industrial performance.”

The team, formed from the merger of Fiat Chrysler and PSA Group, will pay out a dividend of 1.34 euros a share, up from 1.04 euros the prior 12 months. The buyback will run as a result of the end of the calendar year. 

Returns during the 2nd half of 2022 declined as opposed to the initially fifty percent due to the fact of the offer-chain snarls. Running margin was 12 {515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502} in the 2nd 50 percent, down from 14.1 {515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502} in the to start with 6 months. Altered earnings in advance of curiosity and tax ended up 10.95 billion euros in the July to December time period.

Industrial free of charge hard cash flows topped 10.8 billion euros last yr.

Stellantis stated all of its locations were being escalating and providing history profitability, which includes Europe.

The automaker mentioned on Wednesday that it will distribute a file amount of 2 billion euros to its international staff, 200 million euros more than in 2021.

In the U.S., Stellantis will distribute $14,760 just about every to eligible UAW-represented staff as section of a income-sharing program. About 40,500 employees are eligible for the reward, with genuine payouts relying on personal compensated hrs. The payout is up somewhat from the 2021 fiscal calendar year, when about 43,000 employees been given $14,670 every single.

Bumper cash synergies

Stellantis mentioned it had obtained income synergies of 7.1 billion euros last yr, considerably exceeding in progress the 5 billion-euro concentrate on by 2024 it set at the time of the merger.

“This speaks to the quick conversion and execution of the team inside of Stellantis group,” Palmer reported.

Effects had been also served by great growth in worldwide income of electrical automobiles, pricing energy and a positive trade amount outcome connected to a potent U.S. dollar, Palmer claimed, “even with various problems in the marketplace, with semiconductors, logistics, uncooked materials, electricity and inflation.”

Greater industrial charges experienced an in general impact on the group’s results last yr of above 9 billion euros.

Car or truck deliveries fell 2 {515baef3fee8ea94d67a98a2b336e0215adf67d225b0e21a4f5c9b13e8fbd502} past calendar year, primarily because of to semiconductors and logistics constraints, particularly in Europe.

“Difficulties continue on in securing capability for (car) outbound transportation (to shoppers),” Palmer stated. “Semiconductors carry on to be a issue, I do not assume the situation will be totally fixed in 2023,” he included.

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Stellantis evaluating dealers for chargers, EV sales needs

Stellantis evaluating dealers for chargers, EV sales needs

DETROIT — Stellantis is doing the job to ease dealerships into its formidable electric powered auto rollout, but it has no ideas to specify the greenback amounts they’re going to require to make investments as Basic Motors and Ford Motor Co. have done.

The automaker has partnered with Long term Strength, a corporation that advises dealerships on how to set up charging infrastructure and can coach personnel on operational modifications relevant to EVs and product sales procedures.

“Almost 70 p.c of sellers are in a variety of phases of assessing their particular person readiness” with Long run Electrical power, Stellantis explained Tuesday. The two businesses commenced performing alongside one another late very last 12 months.

The evaluations are occurring in advance of Stellantis’ prepared start of more than 25 EVs in the U.S. by 2030, commencing in 2024 with versions which include the Ram 1500 EV pickup and Jeep Recon, a Wrangler-inspired off-highway SUV.

Stellantis is aiming for dealers to have their charging infrastructure put in by the to start with quarter of 2024, reported Phil Langley, the automaker’s head of community advancement for North The united states.

It is not mandatory that outlets function with Future Strength, but they will need to have the vital infrastructure in place to offer EVs. Langley claimed the automaker desires all dealers to sell EVs. Stellantis has not said whether it would give buyouts to these who you should not want to make the expenditure, as GM has accomplished with Buick and Cadillac.

Long term Electrical power will discover electrical power necessities, electrical infrastructure modifications and wanted utility provider upgrades at dealerships. Stellantis claimed Long run Electricity will “identify ideal set up regions for EV charging stations inside of and outdoors of dealerships to handle small business movement problems” and assistance dealerships locate monetary incentive plans to guide with EV investments.

Langley mentioned the evaluations take all-around 30 times to finish. Stellantis, Langley explained, wishes its sellers to have Level 3 fast charging capabilities to assistance its EV lineup.

“We want our sellers to use Long term Energy due to the fact they have an understanding of what our requirements are,” Langley informed Automotive Information. “In the end, we are looking for a dealer to have the charging capabilities they need to service and sell our EV merchandise. They could do that independently, but we preferred to make guaranteed that the dealers experienced that one particular-cease shopping, if you will, that experienced some experience powering it, somewhat than just heading out [and] independently getting a charger and then figuring out where by to put in it and how to install it.”

The dollar amounts Stellantis dealers will require to shell out to market EVs will change by retail store. Some of Stellantis’ chief opponents have been telling their sellers they’ll need to make six- or seven-figure investments. Ford is necessitating dealers to spend as much as $1.2 million and adhere to a new set of criteria in exchange for the capacity to sell limitless EVs right after subsequent yr, prompting some sellers and condition associations to force again.