Stellantis has reported strong financial results for the second year since the merger of Fiat Chrysler Automobiles and PSA Group. Despite Jeep and Ram sales in the U.S. dropping by double digits, North American operations saw an increase in adjusted operating income of 23 percent to $14.8 billion. This was due to pricing power and higher-end content of the brands. Ram recorded its highest average transaction prices for the 1500 pickup at $57,000 and what it calls its heavy-duty trucks at $71,000. Jeep had a 9.4 percent pricing power advantage against the benchmark. In addition, Stellantis is pivoting towards electrification and is ready to bring to North America the strategy that made it No. 1 in commercial electric vehicles in Europe and No. 2 in overall EVs in Europe. As a result of the strong financial results, UAW-represented workers will receive an average of $14,760 in profit-sharing payouts. UAW Vice President Rich Boyer has recognized the profit-sharing amount is deserved, but also noted that there is much work to be done.
The transition to electrification is a complex and difficult process, but Stellantis is well-positioned to lead the way in North America. The company has the technology, the products, the raw materials, and the full battery ecosystem to make the journey a success. For example, Ram is forging into electrification in 2023 with the battery electric Ram ProMaster van and will jump into the EV pickup race next year with the Ram 1500 REV. The ProMaster EV will go on sale in the second half of 2023. In addition, the all-electric Jeep Avenger has been honored with awards in Europe.
Stellantis has the resources and the expertise to make the transition to electrification a success. It is up to the company to make sure that the UAW-represented workers are respected and that their safety is taken into consideration. It is also up to the company to ensure that its products are of the highest quality and that they meet the needs of its customers. With the right strategy and the right resources, Stellantis can make the transition to electrification a success and lead the way in North America.