The group born from the merger between PSA and FCA published its first results on Wednesday. The turnover increases, the level of operating margin is confirmed, but the group suffers from the shortage of semiconductors.
The first months of Stellantis go financially without a hitch. The group resulting from the merger between Peugeot-Citroën and Fiat-Chrysler unveiled on Wednesday its financial results in the first quarter, positive results as the coronavirus pandemic had further resulted in restrictions in various countries.
Stellantis announced a 14% increase in its proforma revenue in the first quarter, reaching € 36.999 billion. Combined sales volume increased 12% to 1.618 million vehicles. The group has also confirmed its operating margin target for 2021, a margin of between 5.5 and 7.5%.
Stellantis Expects Second Quarter Semiconductor Shortage “Higher Impact”
The group however warned about the shortage of semiconductors which particularly affects the automotive sector. It prevented Stellantis from producing 190,000 vehicles in the first quarter.
Yesterday Tuesday, 8 of the group’s 44 factories were affected, between the suspension of certain assembly lines and days of technical unemployment, said the group’s financial director, Richard Palmer, at a press conference. Visibility is “very limited” and the group manages the situation “day to day”, depending on the stock and profitability of the models, said management at a press conference according to AFP.
The group warns that the shortage of microchips, manufactured mainly in Asia and subject to exceptional global demand, will continue and have a “greater impact” in the second quarter, before improving in the second half.
The shortage, however, does not only have disadvantages. The factories are testing options that want to be more “flexible and standardized”: the new Peugeot 308 has, for example, found analogue meters to replace digital meters, which cannot be found.
“It also allows us to act more efficiently, with a lower stock”, which is good for the “profitability” of the group, said Richard Palmer.
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