Stellantis 2023 Full Year Earnings Call

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[00:00:27] Go to Bluehost.com slash WonderSuite. presentation material for this call as well as a related press release were posted under the investors section of the Stellanis Group website. Today our call is hosted by Carlos Tavares, the company's chief executive officer and Natalie Knight, the company's chief financial officer. Before we begin I want to point out that any forward-looking statements we might make during today's

[00:01:40] call are subject to the risks that are edited to sound like one clip. I just want you to be

[00:03:01] aware of that. I will put the link to the full presentation in the show notes if

[00:03:05] you're interested in hearing the Western world is to bring to make it simple BVs at the price of ICEs for our middle-class customers. This is where we are We are going to be able to offer for this 23,300 euro EC3 mid trim

[00:04:22] 320 kilometers of WLTP range

[00:05:26] 23,000 euros. That's, that's unexpected at that price. There is a center infotainment string screen, excuse me, which is 10.25 inches. And then there's an instrument panel that's

[00:05:34] on the other side. It's not where it would normally be on a standard car. It, there's

[00:05:38] like a little plastic black plastic piece that's up near the windshield. And that's

[00:05:43] where they call that a heads up display, like it made the most amount of sense. So they wouldn't have to change a lot between the EV variant and the ICE variant. But that's my guess. The battery pack, let's see, it'll

[00:07:00] charge 20% to 80% in 26 minutes, 100 kilowatt charging speeds.

[00:07:06] So not super fast, but you are talking But there's also things in there that would be interesting to us. I feel like Stellantis did not get the memo that they needed to produce a kilowatt friendly earnings call. They didn't get that memo. That's okay. We'll try it again next year. But what I do want to do is I want to talk about a couple of things that he mentioned and just kind of highlight them. The first thing is

[00:08:22] they currently there are 30 battery electric vehicle mentioned that Stellantis is opening up both battery repair centers and recycling centers.

[00:09:40] So that's great.

[00:09:41] I'm happy to hear that.

[00:09:43] They did mention that they're ramping up also

[00:09:45] with some gigafactories to start building the batteries the more specifically to those Chinese automakers expanding into Europe and North America. So I'm going to play one of the clips for you just so you get an idea as to what they're talking about. And I should mention that the first part of the clip that you're going to hear has to do with how Stellantis is going to turn 2023 around or more, more, to be

[00:11:04] more specific, like boost the margins.

[00:12:05] technology that is going to support a lot of additional profitable sales at the core of the market. So, this is to answer your question, yes, it is important to regain market

[00:12:09] share because we do not have a shrinking strategy and this is visible in the commitment of doubling

[00:12:16] the net revenues by 2030 and we want to do it in a wise way which is protecting the profitability

[00:12:22] and protecting the value of our brands and the road. The fact that for the last 10 months we are experiencing more than 1.5 degrees of global warming is bringing a lot of education to the people and to the public opinion about the urgency to do something about the global warming. Even if passenger vehicles and LCVs are only 12% of the emissions, we need to bring our

[00:13:44] contribution to fix that. But it is important to do it fast. This is where we stand on those two questions. So two things I thought were interesting. One, he mentioned the global warming and that Stellantis needs to lower their impact on global warming. The other thing that I thought was really interesting was he said the cooling off in the EV market

[00:15:01] has helped prices of EV components come down

[00:15:06] and materials come down so that it's And at the same time, we need healthy used car market, no result that used to hold up, more leasing, et cetera. And I'm curious to have your thoughts because I think Stellanthus is more involved in the whole value chain and distribution than most other car makers. So you probably have a better handle on those issues and kind of wondering what's your view and what needs to be done to make sure

[00:16:21] that there is a gradual progression of EVs

[00:16:24] that we're not just waiting for cheap cars to come around

[00:16:27] that is more smooth, in the parking of those services you find charging units. So we need a second star which is about a visible and dense

[00:17:40] charging network that comes to are here, the products are coming at least on Stellanities, they are now here big offensive in the citizens and the education of the consumer about the urgency of contributing to fixing the global warming issue is going to grow from the fact that we are already seeing that we are above 1.5 degrees of global warming much sooner than what we had predicted. So, the public opinion is going to push in that direction, whatever happens. You may have some

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[00:21:43] Ryan Reynolds here from Int Mobile,

[00:21:45] the message for everyone paying big wireless way too much. of how they're approaching hybrids and electric vehicles versus keeping their ice business growing so they can keep their doors open. I'm curious as to what you think. Do you think there are similarities between, based on what you've heard, because obviously you haven't listened to the whole earnings call, but based on what you heard, do you think there are similarities between Ford, GM, and Stellantis in terms of their approach

[00:23:04] to this?

[00:23:05] To me, it sounds very familiar. to this at the very beginning, the production flexibility, the platform flexibility that Stellantis has. Can you just elaborate on that in a bit more detail? Is it right that basically every plant, every production line can do with the Stellar architecture is the Bef version and the IC and hybrid version at the same time?

[00:24:20] So there is nothing really dedicated in terms of manufacturing assets. of investors two or three years ago, the message we were getting was, if your platforms are multi-energy, then they are not optimized for pure BEV, which means that the performance of your BEVs are not as good as the competitors. That's the message we were getting three years

[00:25:42] ago. I remember at that point in time, I asked our team to demonstrate to me what was the that AC system a little bit forward, let's say about two to three inches, max. So you take the AC and you push it forward in the engine compartment because the electrical components are smaller than a pure IC engine. And then

[00:27:01] you can compare two mock-ups, one despite the criticism. It happens that in a certain way, a world, in a certain world today, it's the right decision. It is proven to be the right decision. And we could show to you those mock-ups so that you can make your own opinion, but it's crystal clear when you make that study. So we are very fine with that multi-energy decision on the platforms.

[00:28:24] The second thing is when you go in it. On the M&A stuff, we have already commented right now, nothing is ongoing. It is clear that if we are among the most profitable carmakers in the world,

[00:29:42] we are in a better shape to face the Chinese offensive and different is having a frunk. Well, there's a good chance, and I don't know about this for sure, but there's a good chance that the Stella platform vehicles won't have a frunk. Or if they do have a frunk, it's gonna be very small, right? Like I recognize that the benefits of having a platform that can be hybrid

[00:31:00] ICE or electric vehicle to a company that platform for all three types of energy. I think he calls it energy sources, but having the same platform for ice, hybrid, and EVs. My guess is it's going to be harder than he's letting on, but from a business standpoint,

[00:32:20] this makes a whole lot of sense.

[00:32:22] Also, I do want to kind of step back.

[00:32:24] I said maybe the Stella platform vehicles don't have a frunk. EV transition. Just go ahead and email me bode at 918 digital.com. Friday's episode will be our standard EV news day and then after that it'll either be Lucid or Rivian. Both of the year earnings calls are tomorrow. So I

[00:33:41] haven't decided which one we're gonna go with forever 35. And today we're talking about club med, the best all inclusive getaway for families. Today, club med has nearly 70 resorts worldwide from beach side resorts and the Caribbean and Mexico to magical locations in the Maldives and Morocco to ski resorts in the mountains from Canada to the Alps between their all inclusive

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