Stellantis (Part 2): Launching large SUVs & pickups in N.A., small SUVs & LCVs in the EU

Steep profit fall in 2020 due to COVID-19, impact of global chip shortage starting in early 2021

2021/04/08

Summary

Stellantis統合時のFCAとPSAの業績
FCA and PSA’s business results at the time of the Stellantis merger
(for the second half and full year of 2020)

  Stellantis, which was created as a result of the 50:50 merger between Fiat Chrysler Automobiles (FCA) and the PSA Group (PSA) on January 16, 2021, reported FCA and PSA’s business results for 2020, the final year before the merger, on March 3, 2021. FCA’s net revenue for 2020 declined by 19.9% year-over-year (y/y) to EUR 86.676 billion, and adjusted EBIT (Earnings before interest and taxes) fell by 43.9% y/y to EUR 3.742 billion. While adjusted EBIT for the fourth quarter of 2020 increased y/y supported by the economic recovery in North America, the full year 2020 performance was significantly impacted by the COVID-19 pandemic. PSA (excluding Faurecia)’s revenue for 2020 fell by 19.2% y/y to EUR 47.657 billion, and adjusted operating income decreased by 33.9% y/y to EUR 3.37 billion. While PSA’s results improved considerably in the second half of 2020 with automotive operations adjusted operating income surpassing that of the second half of 2019, the full year 2020 results were impacted by the COVID-19 crisis.

  FCA’s global sales volume in 2020 fell by 22.2% y/y to 3,435,000 units. Sales in North America declined by 23.3% y/y to 1,842,000 units, sales in Europe, the Middle East and Africa fell by 21.5% to 999,000 units, and sales in Latin America decreased by 17.7% y/y to 475,000 units. PSA’s global sales volume in 2020 declined by 27.8% y/y to 2,512,000 units. Sales in Europe fell by 29.7% y/y to 2,123,000 units and sales in Latin America decreased by 30.1% y/y to 95,000 units, while sales in the Middle East and Africa grew by 20.1% y/y to 197,000 units.

  When viewing Stellantis’ (FCA + PSA) 2020 sales volumes by region, sales in North America and Europe accounted for 31% and 49% of the total, respectively. Its regional balance has improved compared to each company as FCA’s sales in North America accounted for 54% of its total sales and PSA’s sales in Europe accounted for 85% of its total. However, Stellantis’ sales in Asia and Pacific including China, the largest automotive market in the world, accounted for only 3% of the total. Stellantis presented its outlook for the automobile market growth of 10%, 8% and 5% for Europe, North America and China, respectively, for 2021. To benefits from the growth of these markets, strategies for each market, including China, are indispensable.

  Stellantis has interrupted and reduced production at its assembly plants in North America and Europe starting early January 2021 due to the global semiconductor supply shortage. In March 2021, production was cut at the Warren Plant in the U.S. and the Saltillo Plant in Mexico, both of which manufacture the Ram pickup trucks. Stellantis also reduced output at the Rennes and Sochaux plants in France which assemble Peugeot, Citroen and Opel brand vehicles.

  Regarding new model launch plans, FCA intends to aggressively release high-margin pickup trucks and SUVs from the Ram and Jeep brands in the U.S. In Europe, FCA and PSA will introduce compact cars, compact SUVs and commercial vans. PSA plans to launch sedans and compact SUVs in China.

  As for developments in each region, PSA’s market share of LCVs in Europe expanded while the whole market shrank due to the COVID-19 pandemic. In North America, lower fleet sales were partly offset by retail sales of the Jeep, Ram and Alfa Romeo vehicles. In Latin America, the Fiat Strada, a small pickup truck introduced in Brazil, enjoyed strong sales. PSA plans to launch 14 models for the next five years in China and introduce the Citroen brand in India during the first half of 2021.


  Please refer to Part 1 of this Stellantis report series by MarkLines for the 2021 financial results outlook, FCA and PSA’s merger synergies, electrification strategy, electrified model launch plan, autonomous driving, and mobility services.

 

Related reports:
Stellantis (Part 1): FCA-PSA Business Integration Completed in January 2021 (Mar. 2021)
OEM Operations in the U.S. in 2020 (Dec. 2020)
OEM Measures to Expand Sales of SUVs and Pickups in the U.S. (May 2020)
FCA and PSA’s Merger (Part 2): Expanding CASE-related investment (Feb. 2020)
FCA and PSA’s Merger (Part 1): Formally Agreed on an Equal Merger (Jan. 2020)