Stellantis, which builds Jeep, Ram, Chrysler, and Dodge cars, believes its products’ advancements and popularity will keep it out of the U.S. electric vehicle pricing war begun by Tesla’s price drops. Teslas are cheaper After promising to lower some new car prices by 20% in January, Tesla attempted different prices. Ford’s F-150 Lightning and Mustang Mach-E are cheaper. It has also made it easier for automakers to price new vehicles before releasing them. Kia executives expect the market to be unstable until the new EV SUV comes out at the end of the year, so they will wait as long as possible to reveal prices for the 2024 EV9. Carlos Tavares, Stellantis’ CEO, told investors that the first half of the year was profitable on a conference call—fair prices for superior goods and services. Tavares expects pricing to stay the same, but Stellantis may adjust them. He prefers to decrease costs and keep the money from excellent goods. Maserati and Alfa Romeo outperform. Even unsuccessful names are improving. Maserati sold 15,000 automobiles worldwide, up 42% from last year, primarily due to the Grecale midsize SUV. Alfa Romeo is seeing “a fantastic turnaround” since sales of its premium small SUV, the Tonale, are up 60%. Tavares says high-end brand margins are good. Stellantis has 14 brands with 100 models each. It loves E.V.s. Tavares says 47 Stellantis electric cars will be sold worldwide by 2024. The U.S. will buy eight of these autos. The Dodge Charger Daytona, Jeep Recon SUV, Ram 1500 Rev pickup truck, and Wagoneer S SUV are examples. The Ram ProMaster commercial vehicle and Fiat 500 battery electric car will debut first. Both will be sold later this year. Making Money According to Tavares, Stellantis sells E.V.s with the same profit margins as internal combustion engines. If they weren’t, the corporation wouldn’t have 14.4% margins. “We have no negative cash flow.” Stellantis will release the first STLA Medium-based small automobiles later this year. This will fill an essential electric vehicle gap. Stellantis’ CEO claims its products will outperform Tesla and Korean rivals. Stellantis’ First-Half Earnings Stellantis’ first-half net income jumped 37% to $12 billion, while sales rose 12% to $109 billion. Due to fewer supply chain issues, Stellantis delivered 1.5 million autos in six months. Success proved this. Stellantis does not release profit reports like most automakers. In Europe, production and shipping were cheaper and more accessible. Tavares claims higher profit margins than Tesla and G.M. The CEO claims that as the automaker accelerates the Dare Forward plan, which projects growth through 2030, it will tackle logistical and other first-quarter issues. Two thousand automobile orders will keep the company busy for four months as it enters the year’s second half. Tavares believes everyone will cooperate so Stellantis can maintain delivering its American personnel the best incentives in North America. Tavares thinks it will be difficult to negotiate new labour arrangements with the UAW and Unifor before the old ones expire in the U.S. and Canada in September.
