Car manufacturer: Stellantis increases profits – but burns billions

Milan. The car manufacturer Stellantis recorded a high outflow of funds in the third quarter despite a jump in operating profits. While the operating result (EBIT) adjusted for special effects rose to 256 (previous year: 90) million euros, four billion euros flowed out of the industrial business, as the manufacturer of brands such as Opel and Fiat announced on Wednesday. Sales stagnated at 37.6 billion euros. The figures show the challenges facing the group, which is undergoing a lengthy restructuring process.

The French-Italian group, which emerged from the merger of Fiat Chrysler and Peugeot at the beginning of 2021, has been struggling with falling sales figures and dwindling profitability for two years. CEO Antonio Filosa presented a new business plan through 2030 in May that includes dozens of new models, cost reductions and closer cooperation with Chinese partners.

However, investors still need to be convinced that the group is on the path to a sustainable recovery. In February, Stellantis announced depreciation in connection with electric cars of more than 22 billion euros. The stock fell to its lowest level since the company's inception earlier this month.

Despite the difficulties, the board confirmed its forecasts for 2026 and the goal of achieving positive cash flow again from 2027. A group-wide savings program should help with this. “Our Value Creation Program got off to a quick start,” said Filosa. We are on track to implement at least 40 percent of the planned savings totaling six billion euros by the end of the year. He also announced that on December 10th he would present a new business plan for the luxury brand Maserati, which has also been struggling recently.