Stellantis expects gross sales development, confirms margin forecast

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Stellantis CEO Carlos Tavares on Wednesday took a bullish stance on the U.S. market regardless of rising fears of a downturn.

Talking on the automaker’s annual shareholders’ meeting, Tavares stated Stellantis was confirming its forecast for double-digit working earnings margin this 12 months, and added that anticipated gross sales in North America, particularly in its extremely worthwhile U.S. enterprise, ought to rise 3 %.

The corporate, whose manufacturers embrace Peugeot, Fiat, Opel and Maserati, reported an above-target adjusted working revenue margin of 11.8 % final 12 months, with a report 16.3 % in North America, the place it sells extremely worthwhile Jeep and Ram pickup truck fashions.

Tavares additionally stated the corporate anticipated gross sales to be up or steady in all of its main markets in 2022 and reiterated a forecast for a constructive money circulation on the finish of this 12 months.

Mild car gross sales fell 16 % within the U.S. within the first quarter, as a world chip scarcity and the Ukraine disaster squeezed inventories and rising costs pushed much less prosperous patrons out of the market. Stellantis U.S. gross sales fell 14 percent in the course of the quarter.

Analysis agency Cox Automotive final month lower its forecast for U.S. automobile and lightweight truck gross sales in all of 2022 to fifteen.3 million automobiles, down 700,000 from its January outlook which pointed to a 7 % improve versus 2021.

It, nonetheless, added the caveat that hitting the brand new goal would require vital enchancment in provide chain disruptions.

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