The parent company of Stellantis in Auburn Hills, Amsterdam-based Stellantis NV, reported first-half revenue of $92.2 billion and earnings of $6.1 billion, a 48 percent decline in net profit, compared to the same period last year.
The lower financial performance, according to the company, was driven by lower sales volumes and mix, due to a combination of inventory reduction initiatives, temporary product production gaps due to a generational portfolio transition, and lower market share particularly in North America.
The company reported adjusted operating income of $9.2 billion, down by $6.2 billion compared to 2023. That represented a 10 percent group-wide margin compared to 14.4 percent a year ago.
“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,” says Carlos Tavares, CEO of Stellantis.
“While corrective actions were needed and are being taken to address these issues, we also have 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 maximize our long-term potential.”
Total sales fell 21 percent in the second quarter, compared to Q2 2023, with all of the company’s brands feeling the pain.
Globally, Stellantis continued its commercial vehicle leadership, taking the top spot for market share in the Middle East and Africa for the first time, and sustaining market share leadership in Europe and South America.
In contrast to the poor overall sales in North America, in the U.S., Stellantis is No. 1 in plug-in hybrid vehicles sales and No. 2 in LEV sales.
Stellantis says it expects its new vehicle launches to boost both revenue and profits. It’s planning no fewer than 20 new product launches in 2024, including 10 that have started production already in the first half of the year.
Eight new vehicles are set to launch on the STLA Large platform between 2024-2026, led by the Dodge Charger Daytona, Jeep Wagoneer S, and Jeep Recon. This new BEV-native multi-energy platform is highly flexible and optimized for various electric drive modules, offering customers the benefits of instant torque from EV propulsion and a range of up to 800 Km/500 miles in BEV models.
Through 2026, the Smart Car platform will serve as the base for 13 models across three regions. The platform combines advanced technology with affordability to make EVs available for everyone. In Europe, the FIAT and Opel brands will follow the Citroën C3 and C3 Aircross launches.
