Stellantis sees profits drop by 70% as results ‘fall short of potential’

Stellantis has posted some sobering financial results for 2024 with a 70% drop in net profit performance and revenues down by 17% year-on-year.

Net revenues dropped to €156.9 billion (£130bn), while net profits fell to €5.5 billion (£4.6bn).

The group, which represents Citroen, Peugeot, Vauxhall, DS, Fiat, Alfa Romeo, Jeep and Maserati in the UK, is going through a big period of transition after a swathe of management changes, the resignation of Carlos Tavares and the closure of its Luton plant in April this year.

Despite the financial results, the company's chairman John Elkann released a defiant statement, saying the business is still delivering on important "strategic milestones".

Firmly focussed on gaining market share

Elkann said: "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 joint-ventures, 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.”

Stellantis' consolidated shipment volumes decreased by 12% due to temporary gaps in product offerings, as well as now-complete "inventory reduction initiatives".

Adjusted operating income of €8.6 billion (£7.14bn) fell 64% with adjusted operating income (AOI) margin of 5.5%.

Total global inventories on December 31, 2024 were 18% or 268,000 units lower year-on-year, including a 20% drop in US dealer stock.

In the 90 days since Tavares quit the company, and while the process to select the next CEO within the first half of 2025 continues, the interim leadership team said it has taken the following actions to improve the company’s performance and profitability.

These actions include:

• Completing inventory management initiatives, including surpassing US dealer stock reduction objectives
• Prioritising critical launches to better meet evolving customer needs, especially in the US
• Making better use of available flexibilities under CO2 regulations to mitigate risks, while continuing to reduce emissions
• Working together with our dealer bodies in the US and Europe to accelerate the return to growth
• Strengthening communication with suppliers to facilitate collaboration and problem-solving
• Elevating engagement with governments and regulators on key industry issues
• Empowering our regions to increase speed of decision-making and rigor of execution

New model roadmap

Stellantis is still planning to launch 10 new models in 2025 across its new STLA platforms.

The first models to hit the roads on the new multi-energy STLA Medium BEV-centric platform were the Peugeot E-3008 and E-5008 and new Vauxhall Grandland. A new flagship DS N° 8 (pictured above) was also launched in December, with an electric range of up to 466 miles.

The STLA Large platform will underpin new Jeep, Alfa Romeo and Maserati models. This incldes the Jeep Cherokee replacement.

Stellantis' Smart Car product strategy includes the Citroën C3/ë-C3 and new C3 Aircross, Vauxhall Frontera and Fiat Grande Panda.