Stellantis Revenue Jumps 14 Percent as Production Shortage Looms
» Posted June 25, 2021 • Resources | Share This Post
Things are looking up for some of the world’s largest auto manufacturers, even with a possible production shortage on the horizon.
Take Stellantis, for example. The company formed in the merger of Fiat Chrysler and PSA had a strong three-month stretch to start the year, as revenue jumped by 14%. That is good news after a pandemic-ravaged 2020 in which drivers largely stayed off the road and new car sales slumped.
“In our first quarter since the Merger, Stellantis posted strong Q1 2021 revenues,” Sellantis CFO Richard Palmer said in a statement announcing the financial results. Palmer credited the company’s “diverse brand portfolio driving increased volumes, positive pricing and improved product mix.”
The company reported a 5% increase in U.S. sales for the first quarter, selling nearly 470,000 vehicles stateside over the three-month period. Stellantis saw sales drop by 10% in the same period a year earlier and the coronavirus spread across the country.
Stellantis brands that saw sales rise over the quarter include Chrysler (32%), Alfa Romeo (25%), Ram (16%) and Jeep (8%). Dodge and Fiat sales dropped by more than a quarter (28%) apiece.
Several other auto manufacturers saw sales rise over the quarter, Car and Driver reports. Toyota (22%), Hyundai (28%), Nissan (11%), Subaru (23%), and Kia (14%), were among the brands that saw double-digit growth over the period.
Palmer, the CFO, also noted “the headwinds from the global semiconductor crisis.”
A semiconductor chip shortage has the industry worried about car production in 2021. Some plants have already been slowed or shuttered, and automakers are expected to produce as many as five million fewer vehicles than previously anticipated this year.
Car inventories are shrinking to the lowest level that some dealers say they have ever seen, according to The Detroit News. Global inventory for Steallntis was down nearly 2% over the quarter, compared to December, the company said.
That, in turn, is driving new car prices up.
What California Car Owners Need to Know About Their Rights
While Stellantis and other car manufacturers look to pump out new vehicles to make up for a slow year, they continue to have a hard time ensuring that their cars are safe to drive. The company recently recalled 20,000 Ram pickup trucks that it said are at risk of engine fires, for example.
The good news is that the California lemon law offers some protections for car owners and lessors in the Golden State. It generally requires car manufacturers to do a full range of repairs on cars while they are under warranty and to buy back vehicles that the company cannot or will not fix.
At Bickel Sannipoli, our California lemon law attorneys have represented hundreds of clients across the state in defective vehicle cases. We are tireless advocates, dedicated to ensuring that car manufacturers are held responsible when they do not live up to their responsibilities.
Our California lemon law attorneys are conveniently located in Los Angeles, San Diego and San Francisco. Call us at (888) 800-1983 or contact us online to speak with a California lemon law attorney today.
