Despite growing concerns about a possible economic downturn in the United States, Stellantis CEO Carlos Tavares maintained a bullish outlook on the market on Wednesday.
As part of the automaker’s annual shareholders meeting, Tavares stated that the company had confirmed its forecast for double-digit operating income margins this year, and that expected sales in North America, particularly its highly profitable U.S. business, should increase by 3 percent this year.
The company, whose brands include Peugeot, Fiat, Opel, and Maserati, reported an adjusted operating profit margin of 11.8 percent last year, exceeding expectations for the first time. It achieved a record 16.3 percent in North America, where it sells highly profitable Jeep and Ram pickup truck models, among other things.
Tavares also stated that the company anticipates sales to be up or stable in all of its major markets in 2022, and that the company expects to have a positive cash flow at the end of this year.
Light vehicle sales in the United States fell by 16 percent in the first quarter of this year, as a global chip shortage and the Ukraine crisis reduced inventories and rising prices drove less affluent buyers out of the market, according to industry data. During the third quarter, sales at Stellantis in the United States decreased by 14 percent.
Cox Automotive, a market research firm, reduced its forecast for total car and light truck sales in the United States in 2022 to 15.3 million vehicles, a reduction of 700,000 from its January forecast, which predicted a 7% increase over the previous year.
Although the company stated that it expected to meet the new target, it also stated that it expected a significant reduction in supply chain disruptions.