Jeep-maker Stellantis expects raw material inflation to ease next year

Automaker Stellantis expects ostentation costs connected earthy materials to subside adjacent twelvemonth pursuing important increases during the coronavirus pandemic, CFO Richard Palmer told investors Thursday.

The spiking costs of captious earthy materials utilized by automakers specified arsenic steel, aluminum and others for EV batteries person been mostly offset by record pricing of caller vehicles, cushioning automakers' margins. But arsenic terms increases slow, costs person yet to follow.

Palmer said helium expects the favorable pricing of caller vehicles to proceed into adjacent year, but said ostentation could continue to deed different parts of the automaker's proviso chain.

"What we volition spot successful 2023 is simply a little interaction from earthy worldly ostentation than the 1 we've seen this year. So, the entity of ostentation impact, I deliberation volition beryllium little successful 2023," helium said erstwhile discussing the company's third-quarter gross and deliveries. "Inflation whitethorn beryllium precocious connected different elements of the outgo curve, but they are of a little entity compared to earthy worldly this year."

Palmer did not specify what inflationary costs helium expected to alteration oregon summation successful 2023. Stellantis, which was formed by the merger of Fiat Chrysler and France-based Groupe PSA in January 2021, was not instantly disposable to comment.

Costs crossed the automotive proviso concatenation person skyrocketed during the coronavirus pandemic, arsenic companies person struggled with logistics, materials and employees.

Ford successful September warned investors that the institution expects to incur an other $1 cardinal successful costs during the 3rd 4th owed to ostentation and proviso concatenation issues. The problems resulted successful parts shortages affecting astir 40,000 to 45,000 vehicles, chiefly high-margin trucks and SUVs that haven't been capable to scope dealers.

In June, AlixPartners reported earthy that worldly costs for some electrical vehicles and accepted models with interior combustion engines much than doubled during the coronavirus pandemic.