William Malcolm

FCA & PSA See Profits Plummet In 2020

Fiat Chrysler Automobiles and PSA, which merged into the Stellantis group earlier this year, saw a sharp drop in profits last year. Both companies most recently published their financial results as separate companies.

Last year, the Italian-American FCA fell its adjusted net profit by 57 percent to 1.9 billion euros (49.7 billion crowns), while the French PSA’s net profit fell by 31.3 percent to 2.2 billion euros.

The merger was completed in mid-January, and the Stellantis Group became the fourth largest carmaker in the world. The newly created carmaker includes 14 European and American brands, such as Opel, Peugeot, Citroën, Jeep, Maserati, and Alfa Romeo.

“These figures prove Stellantis’ financial health,” said Carlos Tavares, head of the company.

Since the merger, Stellantis has promised to be able to save around five billion euros a year. The new company does not want to close any plants, and Tavares has announced that it will not disrupt jobs.

The new automotive group wants to improve profitability, setting an operating profit margin target of 5.5 to 7.5 percent. He expects the car industry to grow this year in all regions where Stellantis operates. Last year, the FCA had a margin of 4.3 percent, the carmaker PSA 6.1 percent. However, in his outlook, Stellantis assumes that no more significant closures will occur due to the pandemic.

The carmaker proposed to pay shareholders one billion euros in dividends.