Stellantis, the world’s third-largest automaker, saw a 13% drop in net profits in the second half of last year following strikes in the fall. It reported net profit of $8.3 billion in the second half, down from $9.5 billion in the same period. Full-year profit was up 11% to almost $20 billion.
The second half of the year felt the impact of strikes at Detroit’s three automakers that shut down plants for six weeks last fall and resulted in increased pay for workers. Automakers are also paying higher vehicle costs as the industry transitions away from gasoline-fueled vehicles.
This year, the company will pay higher labor costs in North America due to the deal, and it reported that collective bargaining cost it about $460 million last year.
Stellantis CFO Natalie Knight said she expects “a pretty turbulent year” due to geopolitical uncertainty. However, the company should benefit from lower raw materials and logistics costs, and it said Red Sea attacks on shipments haven’t been much of a problem as it moved shipments of gear boxes and high-voltage batteries to airfreight.
