Stellantis, the maker of Jeep and Peugeot cars, has warned of a “turbulent” year ahead after higher wage costs, increased competition from China and weaker demand for electric vehicles hit profits.

The world’s third-largest carmaker, formed three years ago through the merger of Peugeot and FiatChrysler, reported a 13 per cent fall in net profit in the second half of last year to €7.7 billion, amid sliding net revenues in Europe and North America.

In the United States, a series of strikes resulted in Stellantis’s Detroit plants sitting idle for six weeks last autumn, contributing to a 5 per cent fall in adjusted operating income over the year in North America, the company’s single largest market.

Yet shares in the carmaker rose €1.30, or 5.7