The standoff lasted 44 days, but an agreement was finally able to be signed between Stellantis and the American and Canadian unions of the #8217;automotive UAW and Unifer. But we can say that the consequences are serious for Stellantis, which its quarter – despite a loss in net turnover directly linked to the conflict which amounts to around 3 billion euros.
According to the latest financial report, the manufacturer is doing a little better than the other two of the Big Three targeted by the strikers. Stellantis announces a net impact of 750 million euros on the current operating margin over the quarter. However, Stellantis' turnover remains up 7% over the quarter and now stands at 45.1 billion euros.
Stellantis saves its last quarter despite the strikes
These results are, however, according to the manufacturer, largely boosted by a favorable context. Notably an “increase in sales volumes and stable prices, partly offset by unfavorable currency effects”as the manufacturer explains to our colleagues from the Lesaffaires site. The increase in sales from one year to the next is in fact 11%.
This strong growth is seen almost everywhere, with the notable exception of Asian markets. Stellantis, however, specifies that last week it took a 20% stake in the Chinese electric car manufacturer Leapmotor – with the aim of forming a new company and taking advantage of the boom in Chinese exports in the sector. It remains to be seen what impact the agreement reached with the trade unions will have on the last quarter of the year… agreements whose total cost for Stellantis remains unknown at this stage.
Several analysts emphasize that Stellantis' results are solid, but no official figures on operating income have yet been communicated. The American employees of the group, which owns many leading brands, such as Peugeot, Citroën which has just launched the electric ë-C3, Fiat, Chrysler and Opel, have thus obtained a salary increase of 25% over a period of four and a half years (against the 40% demand put forward by the UAW at the start of the movement).
Stellantis has also committed to investing $19 billion in its operations in the United States. A similar agreement was signed a few days earlier between the same union organizations, Ford and General Motors. It must be said that the conflict was beginning to weigh heavily on the company's accounts, with production slowed down or even stopped in certain factories and a daily cost of around 19 million ;euros at Stellantis.
The conflict had even taken on a political dimension, with President Joe Biden hailing at the end of October the“power of unions and collective bargaining to create solid jobs for the middle class”.