Stellantis H1 2024 earnings fall 48% on weak sales

Stellantis’ parent company, Auburn Hills-based Stellantis NV, based in Amsterdam, reported revenue of $92.2 billion and profit of $6.1 billion in the first half of the year, down 48% in net income from the same period last year.

According to the company, the weaker financial results were due to lower sales volumes and a lower assortment, which was affected by inventory reduction initiatives, temporary production interruptions due to a generational change and lower market share, particularly in North America.

The company said adjusted operating income was $9.2 billion, down $6.2 billion from 2023. That represents a 10 percent margin across the group, compared with 14.4 percent a year earlier.

“The company’s results in the first half of 2024 were below our expectations, reflecting both the challenging environment in the industry and our own operational challenges,” said Carlos Tavares, CEO of Stellantis.

“While corrective actions were necessary and are being taken to address these issues, we have also initiated an exciting product blitz, with no fewer than 20 new vehicles introduced this year, and that presents greater opportunities if we get the job done right. We have a lot of work to do, particularly in North America, to maximize our long-term potential.”

Overall sales fell 21 percent in the second quarter compared to the second quarter of 2023, with all of the company’s brands impacted.

Globally, Stellantis maintained its leadership position in the commercial vehicle market, gaining the largest market share for the first time in the Middle East and Africa, and maintaining its market share leadership in Europe and South America.

In contrast to weak overall sales in North America, in the U.S. Stellantis is number one in plug-in hybrid vehicle sales and number two in LEV sales.

Stellantis says it expects new vehicle launches to boost both revenue and profits, with no fewer than 20 new product launches planned in 2024, including 10 that began production in the first half of the year.

Eight new vehicles are scheduled to launch on the STLA Large platform between 2024 and 2026, led by the Dodge Charger Daytona, Jeep Wagoneer S and Jeep Recon. This new multi-energy BEV platform is highly flexible and optimized for a variety of electric drive modules, offering customers the benefits of instant EV torque and a range of up to 800 km/500 miles in BEV models.

By 2026, the Smart Car platform will underpin 13 models in three regions. The platform combines advanced technology with affordable pricing to make electric vehicles accessible to everyone. In Europe, FIAT and Opel will follow the Citroën C3 and C3 Aircross.