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Automotive corporation Stellantis targets global BEV sales of 5 million by 2030 following its commendable full-year results.
Stellantis recently posted its full-year 2022 earnings results, which showed a 26% rise in net profit to a record 16.8 billion euros, or $17.9 billion. The multinational automotive manufacturing corporation also experienced a 41% annual jump in electric vehicles and global battery sales.
Following its commendable full-year outing, Stellantis announced a massive 4.2 billion euros ($4.47 billion) dividend payout to shareholders. This payout scheme is still subject to shareholder approval and represents 1.34 euros per share. Furthermore, the company’s board approved a share buyback of 1.5 billion euros, executable by the end of 2023.
Stellantis’ shares increased by 1.6% during the early trading session in Europe.
Stellantis Ascribes Full-Year 2022 Earnings Success to Favorable Factors, Including Strong Net Pricing
According to the company, net revenue surged 18% to 179.6 billion euros due to a combination of favorable parameters. These factors include a favorable vehicle mix, strong net pricing, and positive FX translation effects. Stellantis chief executive Carlos Tavares also explained that the results reflected the company’s Europe electrification strategy effectiveness. This strategy saw the sale of 288,000 battery and electric vehicles (BEV) in 2022. In addition, Stellantis currently has 23 BEVs up for sale, which is expected to double by the end of 2024. The Amsterdam-based automotive manufacturer is targeting global BEV sales of 5 million by 2030.
Commenting on Stellantis’ progress and 2030 renewable energy automotive agenda, Tavares explained:
“We now have the technology, the products, the raw materials, and the full battery ecosystem to lead that same transformative journey in North America, starting with our first fully electric Ram vehicles from 2023 and Jeep from 2024. My deep appreciation to each and every employee and our partners for their contributions to a more sustainable future.”
Formed by a merger of Italian-American conglomerate Fiat Chrysler Automobiles (FCA) and the French PSA Group, Stellantis is a leading automobile manufacturer. Considered one of the largest carmakers in the world, the company is behind several popular individual auto brands. These brands include Peugeot, Jeep, Dodge, Fiat, Chrysler, and Alfa Romeo.
Stellantis full-year 2022 figures also underscores the company’s position as the world’s fifth-largest automaker in global vehicle sales last year. The company ranked behind Toyota, Volkswagen, Hyundai, and General Motors.
Uber Collaboration in French EV Market
Last September, Stellantis announced a partnership with Uber (NYSE: UBER) to make a play for France’s electric vehicle market. At the time, the announcement revealed that car rental service provider Free2Move would also be part of that deal.
Under the partnership, Free2Move would facilitate Uber’s agenda to convert 50% of its French vehicle fleet to electric vehicles. Furthermore, Stellantis’ overlapping EV scope also stood to benefit from that development. The company, which sought to produce and sell more electric and hybrid cars, also aimed to keep its profit margins high. Commenting on Stellantis’ capacity to attain all sales targets at the time, Tavares said:
“We are proud to be a legacy automaker. Being a legacy automaker shows our ability to design and produce safe products at scale.”
Nonetheless, Stellantis still faces substantial challenges in transforming its traditional combustion engines to zero-emission.