Stellantis revenue up 12% despite chip crunch

STORY: Stellantis overcame the global chip shortage to record a 12% revenue rise for the first three months of the year.

The carmaker said Thursday (May 5) the numbers were driven by strong pricing and the type of vehicles sold.

Net revenues hit around $44.1 billion between January and March - above analyst forecasts.

The impact of a global semiconductor shortage was still being felt, though.

Shipments fell 12% in the quarter to 1.37 million vehicles.

Stellantis, home to brands like Peugeot and Jeep, said its so-called ‘Enlarged Europe’ region took the biggest hit in volumes.

Shipments there fell by almost a quarter compared to last year.

Stellantis confirmed its 2022 forecasts for a double-digit adjusted operating income margin, despite supply and inflationary headwinds.

Chief Financial Officer Richard Palmer said he expected semiconductor supply to gradually improve this year and continue into 2023.

Germany’s BMW shared a similar story Thursday, as the auto giant posted higher revenues despite also seeing a fall in car sales.

The chip shortage has pushed carmakers to focus on producing higher-margin vehicles.

The smaller supply has raised prices, as wealthy car buyers can still afford to pay more.