Stellantis is off to a stellar start.
The newly formed automotive conglomerate reported on Tuesday a $7 billion profit during its first half-year of existence despite losing 700,000 units of production due to the ongoing semiconductor shortage.
Stellantis, which includes the former Fiat Chrysler Automobiles brands, has updated its full-year operating margin from 5.5% to 10% on the back of the strong result.
Share prices climbed over 5% at the bell of the bull market.
North America delivered a 16.1% margin during the first half on the back of highest average transactions prices among mainstream brands, which in May and June reached $46 K and $48 K in the U.S.
Ram pickup prices followed the way at an average of $49 K, Jeep Wrangler had its best retail sales in 1st half and the new Jeep Wrangler 4 xe has been the best-selling plug-in hybrid since it went on sale in March. Even one of the oldest automakers has a banner year.
The Dodge Durango SUV has held 31 K retail sales through the first six months of the year, its best showing since 2005 and a record for the current generation of the model, which went on sale in 2011 first.
Stellantis CEO Carlos Tavares credited its performance on the clear positioning of this brand, which is currently focused on vehicles with a muscular style and includes the Dodge Challenger and Charger.
The Durango has received several upgrades over the years to bring it more in line with this philosophy, including the introduction of the $65,000 Durango SRT Hellcat which is powered by 710 hp (sprint) are the world's most powerful SUV. Dodge originally planned to build 2,000 of them, but demand was so strong that it increased the allocation by 50%.
There is high demand for horsepower, Dodge CEO Tim Kuniskis has said recently during an appearance on The Fox Garage.
It would be crazy to think that five years ago we'd be selling eight hundred and seven hundred horsepower cars right off the showroom floor, but people can't get enough of them.
The Durango Hellcat is expected to be replaced after this year due to increasingly stringent emissions rules, and the entire model line will be discontinued soon by an all-new model. Dodge hasn't yet confirmed what's in store, but during its first-half earnings call revealed that a plug-in hybrid Dodge model will be launched in 2022, which could be a Durango that shares its platform with the upcoming Jeep Grand Cherokee 4 xe.