Stellantis sees plunging performance amid weaker sales across board
Carmaker Stellantis saw its 2024 net profit plummet 70% year-on-year as it deals with flagging sales across all its most important markets.
The firm, which owns a range of brands such as Chrysler, Opal, Maserati, Jeep, Peugeot and Vauxhall, confirmed yearly profit at €5.5 billion in an earnings update on Wednesday.
Its share price was down 4.9% in daily trading on Wednesday afternoon.
Stellantis’ net revenue also fell 17% to €156.9bn in 2024, compared to the previous year, with adjusted operating income dropping 64% to €8.6bn.
Global shipment volumes, meanwhile, decreased 12%, mainly because of efforts to reduce inventory stock, as well as gaps in product offerings.
The company is also still looking for a new CEO following Carlos Tavares’ sudden departure in December 2024. Stellantis aims to choose a new CEO in the first half of this year and improve its relationship with dealers, governments and suppliers.
Back in January, Stellantis announced US investments of over $5bn (€4.8bn). However, the company could still be significantly impacted by the planned US tariffs against Mexico and Canada since a large portion of the vehicles it currently sells in the US are made in these two countries.
John Elkann, the chairman of Stellantis, said in the earnings release: “While 2024 was a year of stark contrasts for the Company, with results falling short of our potential, we achieved important strategic milestones. Notably, we began the rollout of new multi-energy platforms and products, which continues in 2025, started production of EV batteries through our JVs, and launched the Leapmotor International partnership.
“Stellantis’ dedicated and talented people are driving forward with energy and determination, engaging with key stakeholders and moving decision-making closer to our customers. We are firmly focused on gaining market share and improving financial performance as 2025 progresses.”
Ongoing struggles for worldwide car market
Stellantis’ disappointing results come as the wider global car industry continues to face increasing challenges. These are partly because of ongoing supply chain issues, as well as rapidly changing regulations in key markets such as the EU and the US.
Escalating global trade tensions, specifically tariff threats between the EU and the US as well as the US and China, have contributed to this situation too. Similarly, trade relations between the EU and China have significantly deteriorated after the former implemented higher tariffs on imported Chinese electric vehicles.
The car industry saw weaker demand in 2024 as geopolitical and economic uncertainty also deterred consumers from making big purchases.
Aside from Stellantis, British car giant Aston Martin also gave an update on Wednesday.
The firm announced a 5% reduction in its worldwide workforce, as the company goes through increased cost cutting efforts led by its new CEO Adrian Hallmark.