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Stellantis NV said the prolonged strikes that curbed output at its North American facilities cost the Jeep maker around €3 billion ($3.2 billion) in revenue.
Pre-tax operating profit during the walkout period was negatively impacted by under €750 million, Stellantis said Tuesday. It still reported better-than-expected third-quarter revenue, bolstered by stable pricing, improving logistics and robust demand for models such as the electric Jeep Avenger.
The “solid” earnings beat was aided by healthy volumes in North America, where pricing is stronger than in Europe, Bernstein analyst Daniel Roeska said in a note. Stellantis also confirmed its full-year guidance.
In the past few days, the carmaker reached tentative labor agreements with unions in Canada and in the US, the group’s biggest profit pool. The latter deal with the United Auto Workers will bring the top wage to over $42 an hour by April 2028.
Stellantis already canceled plans for US events including the CES show in January and will continue to cut costs to make up for the strike impact, said Chief Financial Officer Natalie Knight.
“One of our trademarks is cost discipline,” she said on a call with reporters. “We’re looking at everything — you will continue to hear more about that mitigation as we go forward.”
Stellantis shares traded in Milan rose 1.4% as of 9:31 a.m. local time. The stock has gained around 30% this year.
The manufacturer has been expanding its lineup of electric vehicles as the industry battles to retain mass-market buyers, who have seen their spending power diminished by inflation. Its Citroën brand started taking reservations this month for the new electric ë-C3 starting at €23,300, making it the least-expensive EV produced in Europe. EV sales climbed 37% in the third quarter.
Third-quarter revenue rose to €45.1 billion, surpassing analyst predictions. The company raised its industry growth outlooks for markets including North America and Europe. It lowered the outlook in South America.
Stellantis this month struck a €1.5 billion deal to snap up a stake in Chinese EV manufacturer Zhejiang Leapmotor Technologies Ltd. to help it address declining sales in the world’s biggest auto market and further lower EV costs. The manufacturer will also have a controlling stake in a joint venture to build and sell Leapmotor cars outside of China.
Stellantis said it bought back €500 million in shares during the third quarter and expects to complete its €1.5 billion share buyback program in the current quarter.
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