Sometimes less is more: Stellantis saw North American operations power profit gains for 2022, a year in which top brands Jeep and Ram saw their U.S. sales fall by double digits.
Adjusted operating income from North America surged 23 percent to $14.8 billion for the second year since the merger of Fiat Chrysler Automobiles and PSA Group. While the company reported that second-half shipments in the region fell 4.8 percent to 902,000, net revenues rose 15 percent to $45.8 billion. All this in a year in which Jeep sales in the U.S. dropped by 12 percent and Ram sales by 16 percent.
Pricing power and higher-end content was the key.
Ram recorded its highest average transaction prices for the 1500 pickup at $57,000 and what it calls its heavy-duty trucks at $71,000. Stellantis said Ram has a 3.4 percent pricing power advantage against the benchmark. Stellantis touted Jeep's pricing power in the U.S. as 9.4 percent better than its benchmark.
Overall, Stellantis said its average transaction price in the U.S. was $53,000.
“We are keeping a very high average transaction price, the highest among the Big Three,” Tavares said during an earnings call Wednesday. “The pricing power of our models is matching the feel of what we create, and our creative team from design and engineering are doing a stellar job of making sure that the customers are willing to pay for the value that we create.”