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Stellantis boosts revenue 12% despite chip crunch

MILAN — Stellantis said sales rose in the first quarter, supported by strong pricing and a strong vehicle mix, and also by favorable exchange-rate effects, but it sees only a partial recovery in microchip supply issues this year.

Net revenue increased 12 percent to 41.5 billion euros ($44.1 billion) in the January-March period, the automaker said in a statement on Thursday.

“Our full-year guidance for double-digit adjusted operating income margins and positive cash-flow is confirmed, despite supply and inflationary headwinds, as good product momentum and strategic partnerships continue to pave the way,” Chief Financial Officer Richard Palmer said in the statement.

Vehicle shipments, however, fell by 12 percent in the quarter, mainly because of the impact of unfilled semiconductor orders.

“A 12 percent increase in revenue with a 12 percent decrease in volume indicates a very strong performance on price and mix, which augurs well for our margin performance,” Palmer told reporters.

Palmer said he expected that semiconductor supply would gradually improve this year and continue to get better in 2023.

“But honestly I cannot give a date for when they (supply problems) are solved,” he said.

Supply-chain issues continue to plague most manufacturers. Output at Volkswagen Group has also slumped since the start of the year though the Stellantis rival on Wednesday forecast a significant recovery during the second half of the year. 

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