[Introduction: Toyota's operating profit in fiscal 2023 (as of March 31, 2024) exceeded 5 trillion yen for the first time, and it is still the most profitable car company in the world. And the Stellantis Group has become the most profitable European car company in 2023. No one expected that it was such a marginalized car company in the domestic market, and Guangfic, one of its two joint venture car companies, had gone bankrupt, and Dongfeng Shenlong was in turmoil, but it was able to hand over such a report card, which shows that there are certain differences in car consumption habits at home and abroad. 】
Written by Zhang Dachuan and edited by He Zi
It turned out to be the most profitable car company in Europe.
Recently, Stellantis Group disclosed data showing that it will rank first among European car companies in 2023 with an operating profit of more than 24 billion euros and a net profit of 18 billion euros, and both data have set a new record for the Stellantis Group. Now only Toyota has surpassed Stellantis.
On May 5, Stellantis Group released its first-quarter financial report, achieving net revenue of 41.5 billion euros, a significant increase of 12% over the same period last year. In stark contrast, during the quarter, Stellantis Group shipments fell 12% compared to the same period last year to 1.374 million units. The Stellantis group said that this was mainly affected by the shortage of semiconductor chips. It has to be said that Stellantis is still in a relatively good stage of development.
Stellantis如何实现盈利?
In the Chinese auto market, Stellantis' presence is relatively low. In particular, the dissolution of Guangfik and the continuous hovering of Dongfeng Shenlong at the trough made Stellantis not show superior strength in our impression. However, Stellantis' global performance is still impressive.
1. Global layout
Although Stellantis is a European car company, its predecessor was the integration of France's PSA Peugeot Citroën, Germany's OPEL, Italy's Fiat Group, and the United States' Chrysler. This means that Stellantis has a strength in the United States that Volkswagen and other European automakers cannot match. According to Stellantis' own data, North America contributed half of its operating profit of 24.3 billion euros. Over the past year, the United States has been affected by high inflation. Higher inflation will inevitably stimulate user spending, so this is a good thing for businesses.
For China's own brands, global layout has become a must-do. If you bet on the Chinese market, the market is becoming more and more volatile, and the difficulty of the overall operation of the enterprise is significantly higher. However, for those car companies that operate globally, it is often possible that the east is not bright and the west is bright, and their ability to resist risks is often higher.
2. Cost control
The head of Stellantis, Tang Weishi, has always been a person who cares about cost control and profitability. During his career, he led the acquisition of General Motors' European operations (Opel in Germany and Vauxhall in the UK) by PSA Peugeot Citroën Group. The European business, which has been unprofitable in the hands of General Motors, quickly turned into a profit after the integration with Peugeot Citroen, and Tang Weishi's ability to control costs can be seen.
It is worth mentioning that Stellantis is also more resolute in terms of layoffs. At the end of April, it was revealed that Stellantis planned to lay off 3,500 hourly workers in the United States; In Italy, Stellantis is also interested in cutting 2,000 jobs, or 4% of its employees in Italy. This has also led to negotiations with a number of Chinese domestic brand car companies in Italy, hoping that Chinese car companies can set up factories in Italy to fill relevant job vacancies.
3. Electric vehicle business
Stellantis is conservative about the EV project. At present, most of the electric vehicle business of car companies is loss-making, and almost everyone is using the fuel vehicle/hybrid car business to subsidize electric vehicles. Even the vast majority of domestic new power car companies are still in the process of losing money. In this case, moderately slowing down the pace of development of electric vehicles has become an option for many multinational car companies. Stellantis is conservative in its approach to electric vehicles, and it hasn't invested too aggressively in smart driving. This situation has relieved Stellantis of a lot of pressure on investment, and its profitability has been correspondingly stronger.
Stellantis的电动车之路能否逆转
Although Stellantis is relatively conservative in its EV launch, Stellantis' EV strategy can be called relatively successful compared to several other relatively aggressive multinational car giants.
At the beginning of 2024, Stellantis officially launched the STLA Large platform for pure electric vehicles. The platform will support the D-segment and E-segment segments, covering sedan, crossover and SUV models. According to Stellantis, in addition to pure electric vehicles, this platform can also support internal combustion engines and hybrid power models. This means that Stellantis is able to maximize the efficiency of the platform and reduce the cost of electric vehicles through economies of scale. From 2024 to 2026, Stellantis will launch eight models across five brands based on the STLA Large platform. And by 2030, Stellantis will launch more than 75 electric vehicles worldwide. Stellantis will also have a relatively complete EV product matrix to deliver on its strategic commitment to make BEVs account for 100% of its sales in Europe and 50% of its sales in the United States by 2030.
In addition, according to Stellantis, the profit margins of its electric vehicles are increasingly approaching the level of gasoline vehicles. In particular, Stellantis' electric vehicle business in the U.S. and Europe is already profitable. At present, GM and Ford, two local American automakers, have not yet achieved profitability in the field of electric vehicle business. It can be seen that Tang Weishi and Stellantis management's control of costs has reached the point of "reaching the peak". Against the backdrop of GM, Volkswagen and even Mercedes-Benz slowing down the progress of electric vehicles, the continued profitability in the electric vehicle market has given Stellantis the ability to catch up.
零跑成为Stellantis的新引擎
In addition to self-development, the most commendable thing about Stellantis is its cooperation with Leaprun, a new domestic car company.
In 2023, Stellantis will take a stake in Leapmotor at the same time, and it has also established a joint venture with Leapmotor in which Stellantis holds a 51% stake. It is reported that Stellantis will be the first to start production of the T03 electric mini car at its plant in Poland. The latter will be a strong rival to the Renault Dacia Spring, which is now a big hit in the European market. The Dacia Spring is an all-electric mini vehicle designed entirely in China, manufactured in China and exported to Europe. With the launch of the T03, the market pattern of pure electric vehicles in Europe is expected to usher in a big change. In addition to the T03, Leap's C10 is also expected to complete its certification in Europe this summer. It is worth noting that Leapmotor is also expected to introduce range extender technology to the European market.
It was also previously reported that Stellantis' Alfa Romeo and Maserati are also expected to introduce Chery's Xingtu Star Era platform. If these collaborations can eventually be implemented, Stellantis will undoubtedly be able to further improve its smart electric vehicle product layout, while gaining new revenue, which will strengthen Stellantis' electric vehicle strategy.
Comments
Although Stellantis' performance in China has been relatively weak, it is still a force to be reckoned with globally. For new car companies, with the support of the securities market, short-term losses are not unacceptable. However, if after several years of time, they still do not find a way to make a profit, they need to rely on financing to survive, and they have no hematopoietic ability, then once such a company encounters market fluctuations, it will face a big crisis. In this regard, Stellantis, a traditional car company giant with strong profitability, is worth learning from many domestic car companies.
(This article is the original of "Heyan Reading Cars", and may not be reproduced without authorization)