Stellantis, a global mobility player with 14 brands including Vauxhall, Peugeot, Fiat, Citroën and Jeep, have posted record full year 2022 results with €16.8 billion net profit and €23.3 billion adjusted operating income (AOI). Impressively, global battery electric vehicle (BEV) sales for the group were up 41 per cent showing the transition to zero emissions motoring is continue to grow rapidly.
Stellantis says that this has demonstrated the fast progress on its Dare Forward 2030 strategy as the company gained momentum on electrification, software development and vertical integration at a pivotal time for the industry.
Carlos Tavares, Stellantis CEO, said: “In addition to our record financial results and the focused execution of the Dare Forward 2030 strategic plan, we also demonstrated the effectiveness of our electrification strategy in Europe.
“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.”
Stellantis is already on pace to deliver on its Dare Forward 2030 strategic plan commitments, while working to preserve freedom of mobility. Launched in March 2022, Dare Forward 2030 is built upon three fundamental pillars that will lead the company to achieve its financial ambition of doubling net revenues to €300 billion by 2030 (as compared to 2021), while sustaining double-digit AOI margins throughout the decade.
A more in-depth outline of Stellantis’ results around these three pillars can be found below:
Stellantis has the ambition to achieve carbon net zero by 2038 with an intermediate target of cutting carbon emissions in half by 2030, compared to 2021 levels. In 2022, the company reduced its industrial and real estate carbon footprint by 11%.
As it pushes to become number one in customer satisfaction, Stellantis achieved around 30% reduction in vehicle defect rates three months after delivery to the end customer. All of the company’s key HR processes have been aligned with its diversity and inclusion commitments and 27% of leadership positions are now held by women, targeting 30% by 2025.
Stellantis’ electrification push accelerated with a 41% increase in global battery electric vehicle sales year-over-year, to 288,000 vehicles in 2022. With 23 BEVs now in the market, the BEV portfolio will more than double to 47 by the end of 2024, supporting the target to have more than 75 BEVs globally and global BEV sales of five million by 2030.
Notably, the Jeep brand revealed the first phase of its BEV offensive with the launch of Jeep Avenger. This is the first-ever fully electric Jeep SUV and now the European Car of the Year 2023. It also premiered the all-electric Jeep Recon and Wagoneer “S”, both intended for the North American and other major global markets.
The Ram brand followed, unveiling earlier this month its highly anticipated all-new, all-electric Ram 1500 REV production version that will be available in Q4 2024.
Stellantis is number one in the EU30 commercial battery electric vehicle sales and number two in the EU30 for overall BEV sales with the Fiat New 500 as the number one selling BEV in Italy and the Peugeot e-208 number one in France. The company is positioned as number one in the US for plug-in hybrid electric vehicle (PHEV) sales, with the Jeep Wrangler 4xe as the No. 1 selling PHEV in both the US and Canada.
Stellantis confirmed locations for five gigafactories three in Europe and two in North America, with automotive battery companies, Samsung SDI and LG Energy Solution. As vertical integration of raw materials continues to be a focus, separate agreements were signed with Vulcan Energy, Controlled Thermal Resources, Alliance Nickel Limited (formerly GME Resources Limited), Element 25 and Terrafame.
Stellantis deepened its strategic partnership with Archer, announcing plans to jointly manufacture Midnight, Archer’s flagship electric vertical take-off and landing (eVTOL) aircraft to help ease urban transportation congestion.
To speed the development of its hydrogen-powered offerings, the company announced plans to acquire a stake in Symbio, a global leader in zero-emission hydrogen mobility. Additionally, Stellantis Ventures made 10 start-up investments with three projects to launch in 2023.
Stellantis’ software advancements gained ground enabled by the deep partnerships with Amazon, Foxconn and Qualcomm. Plus, the hiring of more than 1,500 software engineers and around 700 graduates from the Software and Data Academy. Meanwhile, the development of STLA Brain, STLA SmartCockpit and STLA AutoDrive software platforms is progressing.
Prototype road testing is set to begin in the second half of 2023, with the start of technology production at the end of 2024. With the acquisition of aiMotive, Stellantis enhanced its artificial intelligence and autonomous driving core technology. The acquisition supplements existing work with BMW and Waymo.
The software growth strategy is on track to achieve its 2030 targets of €20 billion in net revenues and around 40% gross margin, as the business grew by 25% in 2022 over 2021. At the end of the year, Stellantis’ monetisable connected car parc (based on a five-year rolling car parc) was around 13 million vehicles, targeting around 34 million by 2030. STLA Brain and standardisation efforts from legacy systems and solutions to significantly reduce ECUs per vehicle by more than 50%.
Stellantis prioritised its seven accretive businesses to complement its core business and achieved year-over-year growth:
- US Finco operations continued to expand with approximately 90% of U.S. dealers enrolled to date.
- Unveiled fulsome Circular Economy strategy, including the first Circular Economy Hub in Italy and strategic partnership with Qinomic to develop proof of concept for electric retrofitting of light commercial vehicles.
- Aramis Group reinforced its Europe online pre-owned car sales leadership with acquisitions in Italy and Austria. The company is also expanding dealer online sales of pre-owned vehicles through Spoticar’s launch in North America in 2023.
- Mobilisights, an independent business unit fully dedicated to growing the company’s data as a service business, launched in January 2023.
Importantly, all regions are growing and delivering record profitability. The ‘third engine’ – the Middle East and Africa, South America and China, India and Asia Pacific – grew net revenues by 34% year-on-year and more than doubled its AOI contribution to €3.8 billion for 2022, making progress to achieve the target of more than 25% of the company’s global Net revenues by 2030.
What Stellantis has demonstrated in its initial two years is just a glimpse of the major impact the company expects to have on mobility ecosystems in the future.