Carlos Tavares: Stellantis Is Better Than Tesla And GM Despite The Big Challenges In The First Semester

Jeep Rrangler 4xe 2024. (Doc. Stellantis)

JAKARTA - Stellantis, the world's third-largest automaker by sales, recorded impressive revenue and operating profit growth in the first half of this year. Revenue growth and operating profit show that Stellantis has managed to maintain its performance amid challenging current automotive world conditions.

Sanjattis CEO Carlos Tavares said companies must accelerate cost savings to maintain strong profitability amid more challenging price conditions.

It is known that US electric car manufacturer Tesla (TSLA.O) has started price cuts in China since January, putting pressure on all parties in the automotive industry, including automakers and suppliers, to control costs.

Reporting from Reuters on July 26, Stellantis' earnings in the first half rose 12% to USD 151 billion, surpassing analysts' estimates of USD 121 billion.

"If the market is more competitive at price, we need to work harder on reducing costs to ensure that we give back the breathing space the market needs while protecting margins per unit of ours," Tavares said.

Meanwhile, Natalie Knight's new CFO, which just took office this month, said that price competitiveness is still a major factor in driving the outcomes of companies that have brands such as Fiat, Peugeot, Alfa Romeo, Ram, and Jeep.

"We have made a variety of price increases and the group has been very good at defending it, and are also looking for where the additional price fits in the first half," Knight said.

Carlos Tavares also argues that the performance of Stellantis margins is still better than Tesla and GM, which according to him each records a margin of 10.5% and 8.3%. He also emphasized the target for double-digit margins at the end of this year.

Stellantis' achievement was supported by the delivery of more vehicles in the first half of 2023 thanks to the lack of logistical problems faced by this group in Europe.