Automotive conglomerate Stellantis announced its financial results for the first half of 2024, reporting a net profit of €5.6 billion. This figure represents a 48% decrease compared to the same period in 2023. The company’s revenue also experienced a decline, reaching €85 billion, marking a 14% decrease year-over-year. Due to this decline, Stellantis is ready to axe its money-losing brands.
In case you are wondering, Peugeot, Fiat, Lancia, Chrysler, DS, Maserati, Dodge, and a few more are under the Stellantis’ umbrella. The details of the brand’s financial components are undisclosed but the Maserati brand has reported a €82 million operating loss in the first-half 2024.
Stellantis announced a decline in adjusted operating income (AOI) to €8.5 billion for the first half of 2024, a decrease of €5.7 billion compared to the same period in 2023. Despite this, the company managed to maintain a 10% AOI margin, attributed to reductions in workforce, material, and logistics costs. Stellantis management has confirmed that the company is addressing operational challenges, including inventory management and share price fluctuations in the North American market.
A 3% decrease in total inventory was reported during the first half of 2024, bringing the total to 1,408,000 units. In addition, the company has returned €6.7 billion in capital to shareholders, primarily through an accelerated share buyback program exceeding its initial €3 billion target for the year.
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Factors contributing to this include decreased sales volumes, a shift in product mix, and inventory reduction efforts. Additionally, the company’s model year transition and production adjustments impacted overall performance. These challenges, coupled with a decline in market share within North America, contributed to the overall financial results.
Stellantis Chief Executive Officer, Carlos Tavares stated “The company’s performance in the first half of 2024 fell short of our expectations, reflecting both a challenging industry context, as well as our own operational issues. While corrective actions were needed and are being taken to address these issues, we have also initiated an exciting product blitz, with no fewer than 20 new vehicles launching this year, and with that brings bigger opportunities when we execute well. We have significant work to do, especially in North America, to maximise our long-term potential”.
Stellantis also announced its product launch plan for the year, which includes 20 new models, with 10 already in production. The upcoming Peugeot 3008 and 5008 will be among the first to feature the new Panoramic i-Cockpit and integrated ChatGPT software. The company also launched a new Lancia Ypsilon, which will be a premium hatchback and feature innovative Italian automotive design. The Maserati Grecale Folgore has also been launched, along with the Ram 1500, Citroen Basalt, and Stellantis Pro One Vans.
