Price increases push Stellantis to record profit

Demand for new Jeeps and higher pricing across its range helped automaker Stellantis to post a record profit for the first half of the year, as it shrugged off the global supply shortages that have constrained production across the industry.

Net profit at the maker of the Alfa Romeo, Peugeot and Fiat brands rose by a third to €8bn, driven by record North American margins of 18 per cent, while revenues climbed 17 per cent to €88bn.

Parts shortages, particularly for semiconductor chips, have driven prices higher across the industry and allowed carmakers to focus on producing their most profitable models, as well as the electric vehicles needed to hit emissions targets.

Stellantis’s global sales of battery electric vehicles rose 50 per cent to 136,000 in the six months, while the company said it was second in battery car sales in Europe.

Car shipments in Europe fell by 300,000 to 1.3mn, and revenues in the region fell, but profits increased to €3.2bn.

Every region in the company’s portfolio recorded profit margins of at least 10 per cent, with even Latin America hitting 14 per cent margins despite a fall in sales.