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Motorsport

Stellantis Employees Are Getting $2 Billion Thanks To 2023 Sales

The merger between Fiat Chrysler Automobiles and PSA Peugeot Citroën was finalized in early 2021, birthing Stellantis. But even earlier than the deal was performed, the auto conglomerate shared its luck with its workers with the “pay for performance” initiative. Stellantis has since distributed €6 billion (about $6.4B at present change charges), with one other wholesome 2023.

After robust gross sales final yr, Stellantis can be rewarding its employees with a fats test in 2024. Employees are getting a whopping €1.9B ($2B) whole. The firm doesn’t say how many individuals will profit from the profit-sharing deal, but it surely does point out that round 95 p.c of its workforce was included within the “pay for performance” plan final yr.

2023 Abarth 500e

But it isn’t all excellent news. As the corporate strikes towards an electrical future, the corporate will trim 1000’s of jobs. In November 2023, Stellantis introduced voluntary buyout packages for six,400 salaried workers within the United States. This adopted an earlier announcement in April about voluntary exit packages supplied to 33,500 US-based workers, together with 31,000 hourly employees and a pair of,500 salaried employees.

An identical scenario is unfolding in Europe, the place job cuts are a continuing concern amid the trade’s shift to EVs. In its three years for the reason that merger, Stellantis has eradicated round 7,000 jobs in Italy alone. This regardless of the corporate’s dedication to maintaining all 14 manufacturers alive, together with Lancia.

2024 Lancia Ypsilon

The new Ypsilon, unveiled this week, alerts the rebirth of the troubled model and marks a big milestone as Lancia’s first electrical automobile and one in every of 18 EVs Stellantis plans to construct this yr. The firm goals to broaden its electrical choices additional, with a goal of getting 48 purely electrical fashions in its portfolio by the top of 2024.

Featured

CarDekho Group Announces a Merger with Revv to Strengthen the Shared Mobility Ecosystem


With the Revv merger, CarDekho is building a one-stop solution for all automotive needs, creating a seamless customer experience

Revv CarDekho

India’s top auto-tech solution provider, CarDekho Group, has made a significant move towards creating a comprehensive automotive experience by merging the shared mobility platform Revv into the Group.

Known for its broad services, including CarDekho, BikeDekho, Gaadi.com, Zigwheels, PowerDrift, InsuranceDekho, and Rupyy, the Group will now include Revv’s shared mobility services as part of its House of Brands. This strategic partnership reinforces the CarDekho group’s dedication to smoothly integrating technology within the ecosystem to cater to the diverse mobility needs of consumers. CarDekho will be the majority shareholder in Revv following this merger.

Revv, a well-established player in the shared mobility industry, offers a diverse fleet of vehicles. Its focus on flexibility, affordability, and a wide network across India aligns perfectly with CarDekho Group’s mission to make shared mobility an integral part of the mobility landscape. The integration of tech solutions across the entire automotive journey enhances trust, transparency, and the overall customer experience, ensuring a hassle-free and affordable self-drive experience.

Revv CarDekho

Amit Jain, Co-founder and CEO of CarDekho Group, stated, “As we build a robust ecosystem of mobility solutions, our focus is on delivering a seamless customer experience across cities in India, empowering the mobility need of the new generation. Through strategic integration of technology, we are not just evolving our services but also ensuring more seamless operations. The merger with Revv allows us to offer shared mobility services addressing the evolving needs of Gen-Z customers.”

The merger of Revv aligns with CarDekho Group’s overarching strategy of placing technology at the heart of its operations, aiming to create a complete automobile ecosystem for a seamless customer experience.

“We at Revv are thrilled to be associated with CarDekho Group. This strategic alliance opens up exciting possibilities for us to elevate and enrich the mobility experience for customers across the country. With our expertise in shared mobility and CarDekho’s technology prowess and understanding of the Indian automobile customer, we aim to set new benchmarks in flexible, affordable, and technology-enabled mobility solutions,” said, Revv Founders.

Motorsport

Stellantis Versus Volkswagen In Europe

Stellantis, formed by the merger of Fiat Chrysler Automobiles (FCA) and Peugeot Société Anonyme (PSA), was created to address the challenges faced by the global automotive industry. The group’s portfolio of brands put it in a strong position in Europe, North America, South America, and had the potential for growth in Asian markets.

As of January 2021, Stellantis was the fourth-largest automaker globally, with 6.2 million units sold in 2020. While its sales volume increased to nearly 6.5 million units in 2021, it dropped to 5.84 million units in the following year. With 14 brands under its umbrella, Stellantis had a direct competitor in the form of the Volkswagen Group.

The European Challenge

The competition between Stellantis and Volkswagen went beyond just volume; it also involved profitability. Both companies faced the challenge of transitioning from the internal combustion engine sector to the electric car sector without sacrificing profits. Though there were areas for improvement – Volkswagen with its software and Stellantis with more models – both companies managed to maintain their dominant positions in their respective markets.

However, a significant gap emerged in their most crucial market, Europe. According to data on new car registrations in 28 European countries, Stellantis was losing ground not only to newcomers like Tesla and Chinese brands but also to Volkswagen.

The Gap Widens

The gap between Stellantis and Volkswagen averaged 4.7 points between January 2021 and June 2022. However, since then, the gap has widened to 8.6 points and continues to grow. In July 2023, Volkswagen Group recorded its highest monthly market share in two years, surpassing Stellantis by 11.9 points. This is the largest gap between the two groups since Stellantis was founded and could potentially widen further in the coming months.

Stellantis Needs More Products

Both Stellantis and Volkswagen are striving to catch up in the electric car market. The demand for battery-powered cars is strongest in Germany, while most European consumers still prefer petrol-powered cars. Between January and July 2023, Volkswagen Group registered 244,000 new electric cars in Europe, leading the growth in this sector. Volkswagen’s market share in the Battery Electric Vehicle (BEV) segment increased from 21% in 2022 to 22.5% in 2023, a 58% volume increase.

On the other hand, Stellantis saw a modest 11% increase in BEV registrations, reaching a 13.2% share. Stellantis offers four SUVs out of its 24 electric models, while Volkswagen offers eight electric SUVs out of its 14 different electric models. In terms of petrol-powered cars, Volkswagen has a significant advantage with 54 models available, including 25 SUVs, compared to Stellantis’ 46 models, including 21 SUVs.

Will the gap between Stellantis and Volkswagen continue to grow? Or will Stellantis catch up by expanding its lineup of SUVs and fully electric vehicles?

Source: Felipe Munoz – JATO Dynamics