The maker of Jeep SUVs and Ram pickup trucks on Thursday said its revenues increased 12% year-over-year in the first three months of 2022 even as shipments dropped by the same percentage from lost production resulting from parts shortages.
Stellantis NV's combined shipments fell to 1.42 million vehicles in the first quarter, mostly due to a global scarcity of semiconductors that's hit the industry for more than a year and that doesn't appear to be clearing up this year, according to the automaker's leaders. The resulting decrease in inventory even as demand remains strong, especially for a slate of new, larger Jeeps, helped boost revenues at the transatlantic automaker to $44 billion (41.5 billion euro) for the quarter.
The industry, however, is facing increasing challenges. The pandemic, inflation and war in Europe have resulted in increasing costs for raw materials like steel. That looks like an up to 50% increase right now, Chief Financial Officer Richard Palmer said. Customers have seen their bills go up, and the Federal Reserve this week made its largest hike in interest rates in more than two decades.
