Stellantis’ disappointing efficiency comes as the broader international automotive market continues to face quite a few challenges, significantly escalating tariff threats.
Carmaker Stellantis noticed its 2024 internet revenue plummet 70% year-on-year because it offers with flagging gross sales throughout all its most essential markets.
The agency, which owns a variety of manufacturers akin to Chrysler, Opal, Maserati, Jeep, Peugeot and Vauxhall, confirmed yearly revenue at €5.5 billion in an earnings replace on Wednesday.
Its share worth was down 4.9% in every day buying and selling on Wednesday afternoon.
Stellantis’ internet income additionally fell 17% to €156.9bn in 2024, in comparison with the earlier 12 months, with adjusted working revenue dropping 64% to €8.6bn.
International cargo volumes, in the meantime, decreased 12%, primarily due to efforts to cut back stock inventory, in addition to gaps in product choices.
The corporate can be nonetheless searching for a brand new CEO following Carlos Tavares’ sudden departure in December 2024. Stellantis goals to decide on a brand new CEO within the first half of this 12 months and enhance its relationship with sellers, governments and suppliers.
Again in January, Stellantis introduced US investments of over $5bn (€4.8bn). Nonetheless, the corporate may nonetheless be considerably impacted by the deliberate US tariffs in opposition to Mexico and Canada since a big portion of the automobiles it at present sells within the US are made in these two nations.
John Elkann, the chairman of Stellantis, mentioned within the earnings launch: “Whereas 2024 was a 12 months of stark contrasts for the Firm, with outcomes falling in need of our potential, we achieved essential strategic milestones. Notably, we started the rollout of recent multi-energy platforms and merchandise, which continues in 2025, began manufacturing of EV batteries via our JVs, and launched the Leapmotor Worldwide partnership.
“Stellantis’ devoted and gifted individuals are driving ahead with power and willpower, participating with key stakeholders and transferring decision-making nearer to our prospects. We’re firmly centered on gaining market share and enhancing monetary efficiency as 2025 progresses.”
Ongoing struggles for worldwide automotive market
Stellantis’ disappointing outcomes come as the broader international automotive trade continues to face rising challenges. These are partly due to ongoing provide chain points, in addition to quickly altering rules in key markets such because the EU and the US.
Escalating international commerce tensions, particularly tariff threats between the EU and the US in addition to the US and China, have contributed to this case too. Equally, commerce relations between the EU and China have considerably deteriorated after the previous carried out increased tariffs on imported Chinese language electrical automobiles.
The automotive trade noticed weaker demand in 2024 as geopolitical and financial uncertainty additionally deterred customers from making large purchases.
Apart from Stellantis, British automotive large Aston Martin additionally gave an replace on Wednesday.
The agency introduced a 5% discount in its worldwide workforce, as the corporate goes via elevated value slicing efforts led by its new CEO Adrian Hallmark.