Road hog

3 March 2021 By Christopher Thompson Follow @CGAThompson

The 43 bln euro Franco-Italian carmaker’s shares rose after its maiden results following January’s merger. Savings bolster CEO Carlos Tavares’ ambitious profitability goal. To raise the group’s lowly valuation, he needs to expand in Asia and have a bolder electric vehicle plan.

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Carmaker Stellantis said on March 3 that it is aiming for an adjusted operating profit margin of between 5.5%-7.5% this year as the auto industry is expected to rebound in all regions where the world's fourth-largest carmaker operates.

Stellantis was formed in January through the merger of Italy’s Fiat Chrysler Automobiles and France’s Peugeot. Chief Executive Carlos Tavares reiterated a target of over 5 billion euros a year in savings from the merger, without closing any factories, with 80% achieved by the end of 2024.

The operating margin target for the combined group compares with 4.3% reached by FCA last year and 6.1% by Peugeot and assumes no further significant Covid-19 related lockdowns, the carmaker added.

Milan-listed shares in the automaker rose by 2.5% to 14.24 euros by 0843 GMT on March 3.

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The operating margin target for the combined group compares with 4.3% reached by FCA last year and 6.1% by Peugeot and assumes no further significant Covid-19 related lockdowns, the carmaker added.

Milan-listed shares in the automaker rose by 2.5% to 14.24 euros by 0843 GMT on March 3.

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