In the eternal competition between the three big names in Detroit, that is, General Motors, Ford and Chrysler, last year’s confrontation witnessed the victory of the American Stellantis group, with gains that far outweigh the competitors.
Even with lower absolute registrations (1.8 million vehicles, versus GM’s 2.9 million and Ford’s 2.3 million), Chrysler posted a profit margin of 16.4% versus 8.4% in North America for Ford and 10.1% for GM. By comparison, leader Tesla’s global operating margin was 16.7%.
In 2022, states TheDetroitNews, General Motors had the highest revenue, $128 billion compared to its competitors and Ford stopped at $108 billion. Instead, Chrysler collected 85 but – the most interesting aspect – is that GM reported Ebit (earnings before interest and tax) of 12.9 billion, Ford of 9.1 billion, but Chrysler of 13.9 billion.
The reason lies, in addition to the industrial organization and synergies that Chrysler can exploit within Stellantis, in product and pricing policy. While the Chrysler Group sells many large pickups and SUVs with very high profit margins, General Motors and Ford don’t achieve the same results despite traveling at similar levels of average selling prices. GM gets buyers an average of $43,875 for every car it sells in North America, Ford $46,564 and Chrysler $45,943. Much of the credit for that outcome — says TheDetroitNews — goes to Mark Stewart, who runs Stellantis’ operations in the area. The Alabama native has a strong automotive background (ZF, Trw, Tower) but was hired by Fiat Chrysler when he was at Amazon, Vice President of Operations.
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