Stellantis, the Europe-based automaker known for its brands Jeep, Fiat, and Peugeot, announced today that the recent autoworkers strike in North America will have a significant impact on its profits. While the strike resulted in production halts and caused the company to lose approximately 3 billion euros in sales through October, Stellantis expects the strike to cost them around 750 million euros ($795 million) in profits.
Strike Impact Lower Than Competitors
Despite the significant financial blow, Stellantis’ Chief Financial Officer, Natalie Knight, highlighted that the impact of the strike on the company’s bottom line was still lower than its North American competitors. Knight attributed this partially to Stellantis’ global profile and strategic cost-cutting measures. In comparison, General Motors reported an $800 million strike hit, while Ford estimated its impact at $1.3 billion.
Strong Position and Commitment to the Future
Knight also emphasized that despite the strike’s consequences, Stellantis remains in a robust position globally, especially in the U.S., which is a crucial market for the company. She emphasized Stellantis’ profitability and unwavering commitment to its future success. Additionally, she highlighted that mitigating risks and taking decisive action are core principles guiding the company’s approach.
Show Cancellations Due to Strike Impact
In response to the strike’s repercussions, Stellantis has made the difficult decision to cancel its participation in several key events. The company will not be attending the CES technology show in Las Vegas next year, nor will it be present at the LA Auto Show. These cancellations are a direct result of the strike impact on Stellantis’ operations.
Resolution Reached with United Auto Workers Union
The autoworkers strike, which lasted six weeks, finally came to an end after Stellantis reached a tentative agreement with the United Auto Workers Union. The deal covers more than 14,000 workers at Stellantis’ assembly plants in Michigan and Ohio, as well as employees at parts warehouses across the country.
Electric Vehicle Sales Rise and Revenue Distribution
While Stellantis does not provide full earnings for the third quarter, it did report a significant increase in global sales of electric vehicles. Compared to the same period last year, electric vehicle sales rose by an impressive 37%, driven by strong demand for models like the Jeep Avenger and commercial vehicles.
In terms of regional performance, North America remains the revenue leader for Stellantis, contributing 21.5 billion euros, a 2% increase from last year. Europe follows closely behind, with revenues growing by 5% to reach 14 billion euros, buoyed by an 11% rise in sales.
Stellantis continues to navigate the aftermath of the autoworkers strike and is taking proactive steps to minimize the impact on its business while maintaining a focus on long-term growth and profitability.