UAW Members to Receive $14,760 Each as Stellantis Profits Surge 26%

Stellantis, the parent company of the Ram, Jeep, Dodge, Chrysler, and Fiat brands, reported a successful year in 2022 with a 26% increase in net profits to 16.8 billion euros ($17.9 billion) and an 18% increase in global revenue to 179.6 billion euros ($190.9 billion). North American adjusted operating income rose 23% to 13.9 billion euros ($14.8 billion) and revenue increased 23% to 85.5 billion euros ($90.9 billion). Deliveries rose 2% to 1.86 million vehicles. In the U.S., Stellantis distributed $14,760 each to eligible UAW-represented workers as part of a profit-sharing plan. The payout was slightly higher than the previous year’s amount of $14,670.

The company also unveiled a share buyback of up to 1.5 billion euros ($1.6 billion) and announced a dividend of 1.34 euros per share, up from 1.04 euros the previous year. Stellantis expects another year of double-digit returns as vehicle price increases slow, chip shortages ease, and production picks up. Operating return rose to 13% last year, exceeding analysts’ expectations.

Stellantis achieved cash synergies of 7.1 billion euros last year, which was far more than the 5 billion-euro target set at the time of the merger. The company will also distribute a record amount of 2 billion euros to its global employees, 200 million euros more than in 2021.

However, vehicle deliveries fell 2% last year due to semiconductors and logistics constraints, especially in Europe. Price cuts at automakers including Tesla and Ford on EVs do not bode well for the months ahead. Automakers are still struggling to source enough parts, with logistics problems adding to the fray to delay deliveries. Truck driver and train shortages during the second half left thousands of cars stuck around at Stellantis’s Sochaux plant in eastern France, with Volkswagen also reporting that disruptions left it with a glut of unsold vehicles.

Stellantis’ strong financial performance in 2022 is a testament to the hard work and dedication of its UAW workforce. The company’s UAW members are the backbone of the business and deserve to be respected with a safe working environment and job security. While the profit-sharing bonus is well-deserved, there is still much work to be done to ensure the company’s continued success. Stellantis is optimistic that with their continued hard work, combined with the easing of chip shortages, increased production, and a positive exchange rate effect, they will have another successful year in 2023.