Automaker Stellantis makes better-than-expected profits, warning of pressure on vehicle pricing in the future

CTOnews.com, February 23 (Xinhua)-- Fiat, Ram and Peugeot maker Stellantis exceeded earnings expectations due to strong car prices and higher-than-expected combined earnings, but warned of pricing pressure caused by industry-wide supply chain problems, Reuters reported.

Global carmakers have been affected by supply problems caused by the COVID-19 epidemic, the most serious of which is a shortage of semiconductor chips, affecting their production. The shortage has led carmakers to raise prices amid strong demand.

According to CTOnews.com, Stellantis Group brands include Abbas, Alfa Romeo, Chrysler, Citroen, Dodge, DS, Fiat, Jeep, Lancia, Maserati, Opel, Peugeot, Ram, Vauxhall, Free2move and Leasys.

Stellantis said that although car deliveries fell by 2 per cent, its full-year operating profit rose 29 per cent in 2022. Carlos Tavares, the company's chief executive, said: "pricing power will be under pressure as supply and demand rebalance."

In addition, Tavares added that the semiconductor crisis was mainly caused by difficulties for major tier one suppliers to manage their own supply chains, but most suppliers are now under control.