Jeep, Dodge maker Stellantis posts record annual profit, announces $4.47 billion shareholder payout
Stellantis, the company behind Jeep and Dodge, has posted record profits for the fiscal year 2021. The company's earnings report reveals that the automaker earned a net profit of $7.7 billion last year, up from $3.6 billion in 2020. The surge in profits was driven by robust demand for the company's brands and cost savings from the merger of Fiat Chrysler and France's PSA Group in 2021.
In addition to its impressive financial performance, Stellantis announced that it would pay a cash dividend of $4.47 billion to its shareholders, marking the company's first-ever payout since the merger. This dividend represents approximately $2.27 per share, a significant boost from the estimated $1.35 per share payout the company initially projected.
The payout is part of Stellantis' ongoing commitment to its shareholders, as the automaker seeks to reward them for their continued support amid the ongoing pandemic. The company has also committed to increasing its investments in electrification and sustainability, with a plan to invest €30 billion ($34.8 billion) in electrification and software over the next five years.
The news of Stellantis' record profits and dividend payout comes at a time when the automotive industry is undergoing a significant transformation. With a growing emphasis on electric and autonomous vehicles, Stellantis is positioning itself as a leader in this evolving space, with the goal of developing a comprehensive lineup of electric vehicles across all its brands.
Stellantis CEO Carlos Tavares expressed his confidence in the company's future growth prospects, stating, "We are well positioned to capture the opportunities of the mobility revolution and deliver sustainable value to our stakeholders." He added that the company's strong financial performance was a testament to its employees' dedication and hard work.
The strong financial performance of Stellantis is a significant achievement in the current economic climate, and the company's commitment to investing in the future shows that it is taking a long-term view of the industry's evolution. As the company continues to develop its electric vehicle offerings, it will be interesting to see how it fares against its competitors and whether it can maintain its current momentum.