Stellantis reported its adjusted operating income from North America surged 23% to $14.8 billion for the second consecutive year since the merger of Fiat Chrysler Automobiles and PSA Group.

The company reported that second-half shipments in the region fell 4.8% to 902,000 but noted net revenues rose 15% to $45.8 billion over that period. The gains occurred amid declining US. Jeep and Ram sales, which fell 12% and 16% respectively.

Pricing power and higher-end content was the key, according to the company.

Ram recorded its highest average transaction prices for the 1500 pickup at $57,000 for standard models and $71,000 for heavy-duty trucks. The automaker reported Ram has a 3.4% pricing power advantage against the benchmark. Stellantis also reported that Jeep’s pricing power in the U.S. as 9.4% better than its benchmark. Overall, Stellantis put its average transaction price in the U.S. was $53,000.

“We are keeping a very high average transaction price, the highest among the Big Three,” DEO Carlos Tavares said during an earnings call. “The pricing power of our models is matching the feel of what we create, and our creative team from design and engineering are doing a stellar job of making sure that the customers are willing to pay for the value that we create.”

Still, Tavares warns of headwinds ahead as the company pivots toward electrification. Still, he assured investors Stellantis is ready to bring to North America the strategy that made it No. 1 in commercial electric vehicles in Europe and No. 2 in overall EVs in Europe.

"We now have the technology, the products, the raw materials, and the full battery ecosystem to lead that same transformative journey in North America, starting with our first fully electric Ram vehicles from 2023 and Jeep from 2024," he said in a statement.

Ram will introduce the battery electric Ram ProMaster van in 2023 and introduce the Ram 1500 REV in 2024. The ProMaster EV will be available for sale in the second half of 2023.

Tavares reported the first model year of the Ram 1500 REV sold out in three days. Pre-orders began earlier this month, and the truck will not arrive until late 2024.

Stellantis also reported that it ranked No. 1 in U.S. plug-in hybrid sales with 64,000, up 26%. The jump was led by the Wrangler 4xe. The company’s all-electric Jeep Avenger also was honored with awards in Europe.

Tavares said the plug-in hybrid variant of the Dodge Hornet will arrive in the U.S. market in the first half of this year.  Shipments for the gas version began in the first quarter.

Tavares also reported that the Belvidere Assembly Plant in Illinois that builds the Jeep Cherokee will be idled on Feb. 28 and no product has been assigned to it yet.

Stellantis blamed the move on the COVID-19 pandemic, global microchip shortage, and costs related to developing and building EVs.

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