Stellantis Q3 Results: Automaker Confirms 2021 Margin Target Despite Declining Sales

Editor’s Note: Stellantis reported sales of $ 37.8 billion. An earlier version of this story used an incorrect number.

MILAN – Stellantis has confirmed its full year target of a 10% operating profit margin despite a 14% drop in third quarter sales due to the microchip supply crisis.

Revenue for the quarter was 32.6 billion euros ($ 37.8 billion), Stellantis said in A declaration Thursday. Vehicle deliveries fell 27 percent to 1.131 million.

Like most automakers, Stellantis was forced to shut down some production lines during the quarter due to the lack of automotive semiconductors. The automaker lost 30 percent of its planned production – or 600,000 vehicles – in the quarter.

“The level of chip shortage was probably slightly above what we expected when we last interviewed the market in August,” Chief Financial Officer Richard Palmer noted.

The annual toll of lost production due to the chip crisis would exceed previous forecast by 1.4 million units, he said.

Palmer said the company saw a “moderate” improvement on the chip supply front in October compared to the previous month and expected this trend to continue through the fourth quarter.

“Visibility into semiconductors continues to be a difficult topic for the industry,” added Palmer.

Palmer said Stellantis expected a moderate improvement in shipments in the last quarter. “We are seeing positive pricing in all regions,” he said, adding that he had seen good progress on post-merger synergies and cost management.

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