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Automotive Industry Stellantis Sells Better Again in the USA

Source: dpa/jr | Translated by AI 2 min Reading Time

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For the first time in two years, Stellantis can report an increase in revenue for the third quarter of the current year. Larger engines are selling better again in North America.

Challenger production in Brampton (Canada)(Image: Stellantis)
Challenger production in Brampton (Canada)
(Image: Stellantis)

The Italian-French carmaker can breathe a bit easier thanks to a recovery in the key North American market. However, Stellantis expects high special costs in the second half of the year for strategic decisions and changes to its model plans, as the Opel parent company announced on Thursday in Amsterdam. The multi-brand group's revenue increased by 13 percent in the third quarter compared to the same period last year, reaching 41 billion US dollars. This roughly matched expert estimates.

Sales, including those from non-controlled joint ventures, rose by 14 percent to 1.33 million vehicles. Especially in the recently problematic North American market, sales increased significantly, with a rise of over one-third.

At the beginning of October, the manufacturer announced investments of $13 billion to boost production in the USA and counter the tariffs imposed by President Donald Trump.

In the US, Stellantis had long generated the lion's share of its profits with large pickups and SUVs but had fallen into troubled waters and first had to reduce the high vehicle inventory at its dealerships. The crisis of the group cost former CEO Carlos Tavares his job, among other things. Recently, however, signs of improvement had already emerged. Sales and revenue in Europe have also been on the rise.

The recently appointed CEO Antonio Filosa confirmed the group's financial outlook. In the second half of the year, revenue is expected to increase compared to the first half, and the adjusted operating profit margin is likely to reach a low single-digit percentage.

Filosa also announced the booking of billions of euros in pre-tax charges in the first half of the year, as well as the reintroduction of popular models like the Jeep Cherokee. He also reaffirmed the refocus on hybrid and gasoline vehicles after the previous strong emphasis on electrification.

The expected special costs for revised strategy plans were also incurred in response to regulatory and geopolitical developments, it was stated. They are largely to be excluded from the adjusted operating result. Stellantis did not disclose profit figures for the third quarter, as usual. These are only presented by the group on a semi-annual basis.

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