THE world’s third-biggest car-maker by sales, Stellantis, has announced a positive set of 2023 full-year financial results which included a strong cash position that enabled it to announce a €3 billion ($A5b) shares buyback program and boosted the value of its shares.

The results came despite being hit by UAW strikes in the US in the second half of 2023. 

The strikes dented profit contributions from its Jeep and Chrysler brands. However, a Reuters report said that analysts said the strikes’ impact was muted by high transaction prices on cars sold in the US.

Stellantis posted net revenues for 2023 up 6 per cent year-on-year to €189.5b ($A312.6b). 

Net profit rose 11 per cent to €18.6b ($A30.7b) and cash flows increased 19 per cent to €12.9b ($A21.3b).

The company also said that global BEV sales were up 21 per cent and that 2023 results were in line with its ‘Dare Forward 2030’ objectives.

“As we just passed the three-year mark since Stellantis’ inception, I warmly thank our teams who are executing at the highest levels and contributing greatly to our growth story, even in the strongest of headwinds,” Stellantis CEO Carlos Tavares said.

Carlos Tavares

“Today’s record financial results are proof that we have become a new global leader in our industry and will remain rock solid as we look to a turbulent 2024. Thanks to our flexible technology and product roadmap, we are prepared to address the various scenarios that could arise and to continue delivering on our Dare Forward 2030 targets.”

Stellantis also said that a number of factors could create a ‘supportive revenue backdrop in 2024’, including a reduction in supply and logistical constraints, stabilising and potentially reduced interest rates, and the benefits from the company’s expected expansion of its product offering.

Stellantis issued guidance that included a minimum commitment of double-digit adjusted operating income (AOI) margin in 2024, as well as positive industrial free cash flow, despite macroeconomic uncertainties.

Meanwhile, rumours persist that Stellantis could launch a takeover for Renault, Renault is facing financial headwinds after abandoning the Russian market – its second largest after France. Renault is also reducing the scope of its global cooperation with Nissan.

Italian daily Il Messaggero is saying that the French government, which is Renault’s largest shareholder (and also has a stake in Stellantis) was studying plans for a merger between the two groups.

Speculation in the European press intensified after an electric vehicle market slowdown forced Renault last week to cancel IPO plans for its EV and software unit Ampere. 

Reuters said that its shares have lost 40 per cent of their value over the past five years, exceeding a 13 per cent loss for European rival Volkswagen.

In the same period, Stellantis shares have gained 75 per cent.