The engines undergo final inspection at the Stellantis Dundee Engine Complex on August 18, 2022 in Dundee, Michigan.
Bill Pugliano | beautiful pictures
Car manufacturer Stellantis Chief Financial Officer Richard Palmer told investors on Thursday.
The spike in costs of key raw materials used by automakers such as steel, aluminum and others for EV batteries has been largely offset by record prices of new cars, increasing the profit margin of automakers. But as prices rise slowly, costs have not yet followed.
Palmer said he expects favorable prices for new vehicles to continue next year, but inflation could continue to affect other parts of the automaker’s supply chain.
“What we’re going to see in 2023 is that the impact from raw material inflation is lower than the impact we’ve seen this year. So the entity of the inflation impact, I think will be lower. in 2023,” he said as he discussed the company’s third thing- quarterly revenue and deliveries. “Inflation may be high for other elements of the cost curve, but they’re in a lower entity relative to raw materials this year.”
Palmer did not specify whether the cost of inflation he expected to decrease or increase in 2023. Stellantis, formed by the merger of Fiat Chrysler and France-based Groupe PSA in January 2021Not immediately available for comment.
Costs across the entire automotive supply chain have skyrocketed during the coronavirus pandemic, as companies grapple with logistics, materials and staff.
Ford in September warned investors that the company was expected to suffer 1 billion dollars more cost in the third quarter due to inflation and supply chain problems. Problems leading to parts shortages affect between 40,000 and 45,000 vehicles, mainly trucks and high-margin SUVs that do not reach dealers.
In June, AlixPartners raw material report where the cost of raw materials for both electric vehicles and traditional models with internal combustion engines has more than doubled during the coronavirus pandemic.
