{"id":108498,"date":"2021-03-03T10:35:36","date_gmt":"2021-03-03T10:35:36","guid":{"rendered":"https:\/\/fin2me.com\/?p=108498"},"modified":"2021-03-03T10:35:36","modified_gmt":"2021-03-03T10:35:36","slug":"stellantis-aims-to-lift-fiat-chrysler-margins-towards-psa-levels","status":"publish","type":"post","link":"https:\/\/fin2me.com\/markets\/stellantis-aims-to-lift-fiat-chrysler-margins-towards-psa-levels\/","title":{"rendered":"Stellantis aims to lift Fiat Chrysler margins towards PSA levels"},"content":{"rendered":"
MILAN (Reuters) – Carmaker Stellantis, created by the merger of Peugeot-maker PSA and Fiat Chrysler (FCA), aims to lift profit margins this year towards the levels attained by its Chief Executive Carlos Tavares at PSA.<\/p> With 14 brands under one roof, including Fiat, Peugeot, Opel, Jeep, Ram and Maserati, the world\u2019s fourth largest carmaker was formed in January.<\/p>\n The group said on Wednesday it was targeting an adjusted operating profit margin of 5.5%-7.5% this year, assuming no further significant COVID-19 related lockdowns.<\/p>\n That compares with a 5.3% aggregated margin last year: 4.3% at FCA and 7.1% at PSA excluding a controlling stake in parts maker Faurecia, which is set to be spun-off from Stellantis shortly.<\/p>\n Tavares delivered an improvement in margins at PSA by cutting costs, simplifying its model range and delivering synergies on its purchase of Opel\/Vauxhall.<\/p>\n Milan-listed shares in Stellantis rose as much as 3.3% at the open and were up 2.2% at 0800 GMT.<\/p>\n \u201cStellantis gets off to a flying start and is fully focused on achieving the full promised synergies,\u201d Tavares said in a statement, announcing last year\u2019s results for FCA and PSA, which the group described as \u201cstrong\u201d.<\/p>\n Combined adjusted earnings before interest and tax (EBIT) amounted to 7.1 billion euros ($8.6 billion) last year.<\/p>\n A Milan-based trader said that was \u201cwell above\u201d expectations.<\/p>\n Stellantis targets over 5 billion euros a year in savings from the merger, without closing any plants. Tavares has also pledged not to cut jobs.<\/p>\n The automaker proposed to distribute a 1 billion euro dividend to its shareholders.<\/p>\n A capital markets day for the group is planned for late 2021 or early 2022.<\/p>\n ($1 = 0.8277 euros)<\/p>\n