Pricing buoys Stellantis, VW keeps outlook

STORY: Carmaker Stellantis beat profit forecasts in the first half of the year.

It credited strong pricing power and sales of high margin vehicles.

That's despite headwinds from inflation and chip shortages.

Stellantis said Thursday (July 28) it saw operating income rise 44% from January to June.

The maker of Fiat, Peugeot, Dodge and other brands earned $12.7 billion before interest and tax - about $3 billion above analyst expectations.

It comes as Stellantis drives full throttle into electrification.

The firm says it's ahead of Tesla in Europe.

Earlier this year it set out plans to double its annual revenues by 2030 and push towards low-emission models.

Elsewhere, German rival Volkswagen was confident its own output would rise in the second half.

The auto giant said Thursday it expected to reach the upper end of its operating margin goal for the year as supply chain bottlenecks eased.

It also confirmed plans to list its high-end Porsche brand this year.

VW saw deliveries drop by a fifth in the first half, but still expect them to rise by up to 10% this year.

Its operating profit was down to about $4.8 billion, but still beat analyst expectations.

Customer taste for luxury vehicles helped drive the numbers.

VW shares were up around 2% in early trades.