Stellantis beats revenue expectations but warns chip shortage could slow it down
Stellantis beat analyst forecasts for revenue in its first quarter as a new entity but warned that the global semiconductor shortage would slow down production in the second quarter.
The car giant, which was formed by the mega-merger of Peugeot-owner PSA and Fiat Chrysler, said revenue came in a €37bn for the quarter, ahead of analyst expectations of €34.9bn.
However, it said that it had lost 11 per cent of planned production – 190,000 vehicles – in the first quarter, and warned that this would worsen in the coming three months.
Eight of the firm’s 44 assembly plants are currently being impacted by the shortfall, the firm said, but it refused to give guidance on the full year impact.
Finance chief Richard Palmer said the issue would continue to weigh on the industry for the whole of this year and possible into 2022.
“We do expect it to improve in the second half, but clearly I think it would be naive to expect it to just disappear,” he said.
However, he added that the problem was not affecting Stellantis’ integration plan, which is expected to deliver €5bn in savings a year.
“The integration plan is going ahead extremely positively,” Palmer said. “The synergy plan is very much on target.”
Shares in the firm are up 2.8 per cent in the day’s trading so far.
The carmaker is still in talks with the UK government over the amount of support it requires to keep its Vauxhall factory at Ellesmere Port in Cheshire open.
Production of the firm’s current Astra model is set to come to a close soon, with the future of the plant up in the air.
The government wants the car giant to build electric vehicles at the plant, but Stellantis has warned it cannot do so without financial support.
According to the Telegraph, there is still a £40m gap between what ministers are offering and what the firm wants to keep the plant running.