Stellantis ups 2021 profit margin goal

Carmaker Stellantis said on Tuesday (August 3) it would raise its full-year profit target after strong first-half results.

It said record margins in North America and progress on cost savings both helped.

Stellantis was formed in January by the merger of Fiat Chrysler and Peugeot-maker PSA to create the world's fourth largest carmaker.

Its Milan-listed shares rose as much as 5.2% in morning trade.

Last month CEO Carlos Tavares warned the global semiconductor shortage would drag into next year.

And on Tuesday, the group said it did not expect chip supply to improve before the final quarter of this year, with a production loss of around 1.4 million vehicles this year.

It added that a spike in raw material prices also remained a challenge.

Earnings before interest and tax in the first half totalled 10.2 billion dollars, beating forecasts.

Also on Tuesday, BMW raised its profit forecast after strong quarterly results.

It posted a quarterly net profit of $5.7 billion, more than double forecasts.

But it said the global chip shortage and rising raw materials prices would also hurt its performance in the second half of the year.

BMW has been less affected by the chip shortage than some of its peers.

That's been attributed to its strong relations with its suppliers.

BMW is also working on the electrification of its model range.

But on Tuesday it said the EU's charging infrastructure plans are "not ambitious enough."

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