Stellantis N.V. (STLA): history, ownership, mission, how it works & makes money

A Brief History of Stellantis N.V. (STLA)

Formation and Merger

Stellantis N.V. was officially formed on January 16, 2021, through the merger of Fiat Chrysler Automobiles (FCA) and PSA Group (Peugeot Société Anonyme). This merger was valued at approximately $52 billion.

Initial Public Offering and Market Presence

On January 19, 2021, Stellantis debuted on the New York Stock Exchange and Euronext Paris under the ticker STLA. At the time of its IPO, the company’s market capitalization was about $55 billion.

Revenue and Financial Performance

For the fiscal year ended December 31, 2022, Stellantis reported revenues of €179.6 billion (approximately $194 billion) and an adjusted operating income of €14.7 billion (about $15.9 billion), reflecting a margin of 8.2%.

Global Operations Overview

Product Lines and Brands

Stellantis operates a diverse portfolio of iconic automotive brands including:

• Chrysler
• Dodge
• Jeep
• Ram
• Peugeot
• Citroën
• Opel
• Vauxhall
• FCA's Maserati and Alfa Romeo
• DS Automobiles

Strategic Initiatives and Electric Vehicles

Stellantis announced a significant investment in electrification, committing over €30 billion (approximately $33 billion) through 2025 to accelerate the transition towards electric vehicles (EVs). The company aims to offer more than 75 fully electric models by 2030.

Sales Growth and Market Share

In 2022, Stellantis achieved a total global vehicle sales volume of approximately 5.8 million units, maintaining a market share of about 14.7% in Europe.

Carbon Neutrality Goals

The company aims to become carbon neutral by 2038, with intermediate targets that include achieving a 50% reduction in carbon emissions by 2030. Stellantis has set a goal of reducing CO2 emissions per vehicle by 30% by 2025.

Stock Performance

As of October 2023, Stellantis's stock price fluctuated around $16 per share, with a market capitalization exceeding $50 billion.

Research and Development Investment

Stellantis allocated approximately €5 billion (about $5.5 billion) in 2022 for research and development, focusing on electrification, autonomous driving technology, and advanced connectivity.

Workforce and Employment

As of 2022, Stellantis employed over 400,000 people across its global operations, reflecting a commitment to workforce diversity and sustainability.

A Who Owns Stellantis N.V. (STLA)

Ownership Structure

Stellantis N.V. operates as a multinational automotive manufacturing corporation, resulting from the merger between Fiat Chrysler Automobiles and PSA Group. As of the latest data, the ownership stakes in Stellantis are distributed among various stakeholders, as follows:

Market Capitalization

The market capitalization of Stellantis N.V. as of October 2023 is approximately $49 billion. This figure is pivotal as it reflects the company's valuation in the stock market.

Stock Performance

Stellantis N.V. is listed on multiple exchanges, including the New York Stock Exchange and Euronext Amsterdam. The stock ticker is STLA. The stock price as of October 20, 2023, is approximately $15.50.

Major Institutional Investors

Several institutional investors hold significant stakes in Stellantis N.V. A brief overview of the top institutional shareholders is outlined below:

Recent Financial Performance

For the fiscal year ending December 31, 2022, Stellantis reported the following financial metrics:

Geographic Distribution of Ownership

The ownership of Stellantis is also influenced by geographic distribution. The majority of shares are held by investors in North America and Europe:

• North America: 45%
• Europe: 40%
• Asia: 10%
• Rest of the World: 5%

Recent Developments

As part of its ongoing strategy, Stellantis has focused on electrification and sustainability, aiming to launch over 25 electric models by 2030. The company committed to investing $35 billion in electrification initiatives from 2021 to 2025.

Stellantis N.V. (STLA) Mission Statement

Corporate Vision

The mission statement of Stellantis N.V. focuses on delivering sustainable mobility solutions, prioritizing environmental stewardship, and creating a more inclusive society. Stellantis aims to offer innovative products that meet the evolving needs of the market while ensuring profitability and shareholder value.

Core Values

• Integrity
• Respect
• Innovation
• Sustainability
• Collaboration

Financial Overview

In 2023, Stellantis reported total revenues of approximately €179 billion. The company’s net income for the same year was around €12 billion.

Market Presence

Stellantis operates in over 130 countries worldwide, with approximately 400,000 employees across its brands. The company’s brands include Fiat, Jeep, Peugeot, and Chrysler, among others.

Production and Sales Data

In 2022, Stellantis manufactured approximately 4 million vehicles. The company’s global vehicle sales reached about 4.4 million units, with a market share of 14% in North America and 10% in Europe.

Commitment to Sustainability

Stellantis has set ambitious goals to reduce its carbon footprint, pledging to become net carbon neutral by 2038. The company aims to electrify its vehicle lineup, targeting 70% of its sales to be low-emission vehicles by 2030.

Strategic Objectives

• Enhance customer satisfaction
• Drive operational efficiency
• Invest in electric vehicle technologies
• Expand global partnerships
• Achieve financial stability

Employee Engagement

Stellantis emphasizes a diverse workforce, with 40% of management positions held by women. The company has also launched programs aimed at improving employee training and development, with an investment of approximately €500 million in employee skills training over the next five years.

Community Involvement

Through its corporate social responsibility initiatives, Stellantis has contributed over €100 million to various community projects worldwide since its formation in 2021. The company focuses on education, technology access, and environmental conservation.

How Stellantis N.V. (STLA) Works

Company Overview

Stellantis N.V. is a multinational automotive manufacturer formed in January 2021 through the merger of Fiat Chrysler Automobiles (FCA) and Groupe PSA. The company is headquartered in Amsterdam, Netherlands, and operates in over 130 countries worldwide.

Revenue and Financial Performance

For the fiscal year 2022, Stellantis reported total revenues of €179.6 billion. The company achieved an adjusted operating income of €15.3 billion, resulting in a margin of 8.5%.

As of Q1 2023, Stellantis reported a net profit of €3.3 billion, representing a 15% increase year-over-year.

Global Presence

Stellantis operates 43 manufacturing facilities and has a workforce of approximately 400,000 employees across the globe. The company sells cars under various brands, including:

• Jeep
• Ram
• Dodge
• Chrysler
• Peugeot
• Citroën
• Opel
• Vauxhall
• Fiat
• Alfa Romeo
• Maserati
• DS Automobiles

Production and Manufacturing

Stellantis operates a diverse portfolio of factories that produce a variety of vehicles, including passenger cars, light commercial vehicles, and electric vehicles (EVs). As of 2023, Stellantis has committed to invest over €30 billion in electrification through 2025.

Research and Development

Stellantis invested €5 billion in R&D in 2022, focusing on advanced technologies and sustainable mobility solutions. The company aims to have a carbon-neutral footprint by 2028.

Market Position and Competitors

As of 2023, Stellantis holds approximately 14% of the global automotive market share. Key competitors include:

• Toyota Motor Corporation
• Volkswagen AG
• Ford Motor Company
• General Motors
• Hyundai Motor Group

Stock Performance

Stellantis N.V. is traded on the New York Stock Exchange under the ticker symbol STLA. The stock price as of October 2023 was €14.60, with a market capitalization of approximately €46 billion.

The company announced a dividend of €1.12 per share for 2022, reflecting a strong return to shareholders.

Sustainability Initiatives

Stellantis aims to reduce CO2 emissions by 50% by 2030, with a strong focus on electrification and sustainability programs. The company plans to produce over 5 million electric vehicles by 2030.

How Stellantis N.V. (STLA) Makes Money

Vehicle Sales Revenue

Stellantis generates a significant portion of its revenue through the sale of vehicles. In 2022, Stellantis reported a total revenue of approximately €177.9 billion, with vehicle sales comprising a large percentage of this figure.

Financial Services

Stellantis also earns revenue from financial services, which includes financing and leasing options for customers. In 2022, this segment generated approximately €7.5 billion in revenue.

Parts and Accessories

The sale of parts and accessories contributes to Stellantis' revenue, adding approximately €14.1 billion in 2022. This includes a range of products from replacement parts to branded merchandise.

Research and Development (R&D) Investments

Stellantis invests heavily in R&D, with expenditure in 2022 reported at €6.3 billion. This investment facilitates innovation and the development of new models, particularly in the electric vehicle segment.

Electric Vehicle (EV) Strategy

The shift towards electric vehicles is central to Stellantis' growth strategy. As of 2022, Stellantis announced plans to invest €30 billion by 2025 in electrification and software development.

Revenue by Brand

Stellantis encompasses multiple automotive brands, each contributing to the overall revenue. The following table summarizes the revenue contributions by major brands for the fiscal year 2022.

Cost Management

Cost management strategies have been crucial for Stellantis’ profitability. The company reported an adjusted operating profit of €15.7 billion for 2022, reflecting disciplined cost control.

Global Production Footprint

Stellantis operates a vast global production network, with 47 manufacturing plants worldwide. This extensive footprint allows for flexibility and efficiency in production, catering to various markets effectively.

Strategic Partnerships

Partnerships play a role in Stellantis' revenue generation, particularly in technology and electric vehicle development. Collaborations with firms such as Samsung for battery production are strategically vital.

Market Trends

Stellantis has positioned itself to capitalize on market trends favoring SUVs and electric vehicles. In 2022, SUVs accounted for approximately 50% of its total global sales.

Conclusion on Revenue Streams

The diverse revenue streams and strategic initiatives underline Stellantis’ potential for sustained financial performance. The balancing of traditional vehicle sales with new technologies positions Stellantis favorably in a transforming automotive landscape.