Stellantis Reports Decline in First Half of 2024 Amid Industry Challenges
- Stellantis has reported a significant 48% drop in its net profit for the first half of the year.
- The company cites reduced sales volumes and diminishing market share in North America as the main reasons for this decline.
- This stark decrease highlights ongoing challenges for automobile manufacturers in the competitive U.S. market.
Stellantis, the multinational automotive manufacturer, has reported a significant decline in its financial performance for the first half of 2024, with adjusted operating income dropping to 8.5 billion euros, a decrease of 5.7 billion euros compared to the previous year. CEO Carlos Tavares attributed this downturn to a combination of a challenging industry environment and internal operational issues. He emphasized that the company’s struggles should not be blamed solely on cost-cutting measures, urging local teams to focus on profitability, market share, and customer satisfaction. The company’s sales in the U.S. fell by approximately 16% during the first half of the year, marking Stellantis as the only major automaker in the U.S. to report a sales decline in 2023. This decline has contributed to a decrease in North American market share, which now stands at 8.2%, down 1.8 percentage points from the previous year. Tavares expressed confidence in the company’s ability to recover, citing plans for 20 new model launches and additional price cuts aimed at boosting sales. In contrast to Stellantis, competitors General Motors and Ford have reported mixed results, with GM raising financial targets after exceeding earnings expectations, while Ford experienced a dip in adjusted profit. Stellantis’ net revenue for the first half of 2024 was reported at 85 billion euros, reflecting a 14% decline from the same period last year, underscoring the challenges the company faces in a competitive market.