PSA and FCA signed record results in the fourth quarter allowing the two newlyweds within Stellantis to “start on the right foot”.
Carlos Tavares’ strategy – reducing the number of cars needed to be profitable – has paid off in this time of pandemic. “We have a company and results that resist all weather. Stellantis is off to a good start, ”said the CEO.
“The merger brings great opportunities that will not leave us cornered in a dinosaur position.”
The new juggernaut can rely on record fourth quarter results for PSA (Peugeot, Citroën, Opel and DS) and FCA (Fiat Chrysler). PSA achieved a current operating margin of 7.1% for its automotive business in 2020 despite a decline in turnover of 18.7%. FCA signs an EBIT margin of 4.3% for the year.
Stellantis has set itself the target of an operating margin of 5.5 to 7.5% for 2021. “The merger brings great opportunities that will not leave us cornered in a dinosaur position,” Tavares insisted to his investors.