At Stellantis investor day, cost cuts and China come into focus
What are Stellantis' financial targets for 2030, and how does the company plan to achieve these goals?
Stellantis has set ambitious financial targets for 2030, which include increasing profits and doubling revenue to 300 billion euros by 2030. The plan also includes targets such as achieving adjusted operating profit of more than 12% and industrial free cash flow of more than 20 billion euros.
To achieve these goals, Stellantis has been aggressively cutting operations under CEO Carlos Tavares. The company has reduced spending by 5 billion euros annually, a target it plans to achieve in 2024, a year ahead of schedule. Stellantis has also set a goal to remove 40% of its costs to be able to profitably produce and sell EVs to mass-market consumers. The cost-saving measures have included reshaping the company's supply chain and operations as well as headcount reductions. Since the merger between PSA Groupe and Fiat Chrysler, Stellantis has reduced headcount by 15.5%, or roughly 47,500 employees, through 2023.
Stellantis also plans to invest more than €30 billion through 2025 to execute its software and electrification transformation6. The company's software strategy works hand-in-hand with its vehicle electrification plans, which targets that more than 70% of its vehicle sales in Europe and more than 40% of vehicle sales in the United States will be low emission vehicles (LEV) by 2030. Each of the Company's 14 iconic brands is committed to offering best-in-class fully electrified solutions.
How much has Stellantis reduced its headcount since the merger in 2021, and what impact has this had on the company's operational efficiency?
Stellantis has reduced its headcount by 15.5%, or roughly 47,500 employees, since the merger in 2021 through 2023, according to public filings. The cost-saving measures have included reshaping the company's supply chain and operations, as well as headcount reductions. As a result of these cuts, the adjusted operating income of the company has increased by 31% from 2021 through last year, and its adjusted profit margin is up, rising 0.4 percentage point during that time frame to 12.8%. Stellantis Chief Technology Officer Ned Curic said the company is operating far more efficiently than before, including "proper system engineering" to ensure it's optimizing design and function for its new vehicles.
What new products and software initiatives is Stellantis expected to announce during their investor day?
Stellantis, the parent company of brands like Ram and Jeep, is expected to address several topics during their investor day, including forthcoming products and software initiatives. While specific details about new products and software initiatives have not been disclosed, it is expected that the company will provide updates on their progress in these areas.
The company has been focusing on cost-cutting measures under CEO Carlos Tavares, with the aim of achieving ambitious financial targets by 2030. This has included reshaping the company's supply chain and operations, as well as headcount reductions. The cost-saving measures have helped increase the automaker's adjusted operating income and profit margin.
Stellantis Chief Technology Officer Ned Curic has also mentioned that the company is operating far more efficiently than before, with "proper system engineering" to ensure it's optimizing design and function for its new vehicles. It is possible that the company may provide updates on these engineering advancements during the investor day.
Additionally, the company has set ambitious financial targets for 2030, including doubling revenue to 300 billion euros and achieving an adjusted operating profit of more than 12%. It is likely that the investor day will provide updates on the company's progress towards these goals, as well as any new products or software initiatives that will help them achieve these targets.