UAW-represented workers at Chrysler-parent Stellantis are potentially in line for profit-sharing checks before taxes totaling $14,670 this year.
The amount, which Stellantis confirmed early Wednesday after it released its earnings for 2021, is the largest profit-sharing amount that the company or its predecessors have announced in 35 years, the company said in an email. Last year’s check was $8,010.
The total, which puts the company’s workers ahead of those at either Ford or General Motors, represents what workers are eligible for, but the specific check amounts will vary depending on hours worked. It’s calculated from the company’s financial performance in North America and is based on a formula included in the company’s 2019 collective bargaining agreement with the UAW.
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CEO Carlos Tavares noted in a news release that “employees are the heart of Stellantis. It is thanks to their continued focus on execution and excellence that we were able to achieve record results in our first year as Stellantis.”
Checks are to be issued on March 11, according to an email from the company.
About 43,000 Stellantis workers are represented by the UAW. Stellantis has its headquarters in the Netherlands but its U.S. offices in Auburn Hills.
The Stellantis check amounts compare with $7,377 for Ford workers and $10,250 for General Motors workers represented by the UAW.
The company announced a solid financial performance last year despite challenges brought on by the global semiconductor shortage and coronavirus pandemic. The company, which formed last year from the merger of Fiat Chrysler Automobiles and Peugeot maker PSA Group, reports its prior year earnings comparisons using a combination of FCA and PSA Group results.
Stellantis said it had net profit of $15.2 billion (13.4 billion euros), up from $5.5 billion (4.8 billion euros) in 2020, and revenues of $172.4 billion (152 billion euros), an increase from $152 billion (134 billion euros), during the prior year. It reported adjusted operating income of $20 billion (18 billion euros), up from $10.4 billion (9.2 billion euros), and a margin of 11.8%, which is up from 7%, in 2020.
The company, which plans a $3.7 billion (3.3 billion euros) ordinary dividend distribution subject to an OK from shareholders, said it had industrial free cash flows of $6.8 billion (6 billion euros) in 2021.
Stellantis releases its full earnings reports every six months rather than quarterly. For the second half of the year, the company reported net profit of $8.4 billion (7.4 billion euros), up from $6.4 billion (5.6 billion euros), and net revenues of $87 billion (76.8 billion euros), a decrease from $93 billion (82 billion euros) during the same period the prior year. It reported adjusted operating income of $10.7 billion (9.4 billion euros), up from $9.6 billion (8.5 billion euros), and a margin of 12%, which is up from 10%, compared to the last six months of 2020.
The company reported positive earnings across the globe, noting it launched 10 new models and said that the Jeep Wrangler 4xe was the best-selling plug-in hybrid electric vehicle based on retail sales in the United States last year.
For North America, adjusted operating income was $12.9 billion (11.4 billion euros), which was up from $6.8 billion (6 billion euros), and net revenues stood at $79 billion (70 billion euros), up from $68.8 billion (60.6 billion euros) for the year. Vehicle shipments were down 2%, which the company said was mainly because the Dodge Grand Caravan and Journey were discontinued in the second half of 2020 although that was partially offset by Jeep and Ram numbers last year.
The company’s guidance for 2022 predicted a double-digit income margin and positive cash flow, but that “assumes economic and COVID-19 conditions remain substantially unchanged.”
Tavares cheered the results, noting the challenges over the past year.
“Today’s record results prove that Stellantis is well positioned to deliver strong performance, even in the most uncertain market environments. I warmly thank all Stellantis employees across our regions, brands and functions for their contribution to building our new company powered by its diversity. I take this opportunity to also thank the management team for their relentless efforts as we faced and overcame intense headwinds,” Tavares said in a statement. “Together, we are focused on executing our plans as we race to become a sustainable mobility tech company.”
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The other members of the Detroit Three also reported solid earnings for 2021. Ford said it had net income of $18 billion and $10 billion in earnings before interest and taxes in 2021; General Motors reported net income of $10 billion and $14.3 billion in earnings before interest and taxes.
Although Stellantis’ financial performance last year showed strength, Jessica Caldwell, executive director of insights for Edmunds, indicated that the future for the company appears a bit unclear.
“Stellantis benefited from a lift in market share in (the fourth quarter of 2021), but that might be less due to compelling new products on the automaker’s end, and more likely due to consumers simply seeking out other options as inventory remains tight across the board. Stellantis has been a bit quiet about its future product strategy, which only leaves room for questions about the company’s long-term success,” she said.
Caldwell also suggested that the company, which has announced plans for $35 billion (30 billion euros) in electrification and related investments through 2025, needs to do more to get its message out.
“In 2022 it will be critical for the company to share more definitive plans in order to compete with its Detroit rivals, who seem to be rolling out much more aggressive electrification and autonomous technology plans,” Caldwell said.
Contact Eric D. Lawrence: elawrence@freepress.com. Follow him on Twitter: @_ericdlawrence. Become a subscriber.