Auto giant Stellantis reported a significant decline in first-half net profit, attributed to reduced volumes, temporary production gaps, and lower market share in North America. The company, which owns well-known brands such as Jeep, Dodge, Fiat, Chrysler, and Peugeot, saw its net profit for the first half of 2024 fall to $6.07 billion, a 48% drop from the same period in 2023.
Stellantis’ adjusted operating income for the first six months of 2024 was a decrease of $6.2 billion year-over-year, primarily due to declining performance in North America. This disappointing financial report caused Milan-listed shares of Stellantis to fall by approximately 8.5% on Thursday.
CEO Carlos Tavares acknowledged the company’s underperformance, stating, “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.” He added that while corrective actions are being implemented, Stellantis is also launching an ambitious product blitz, with 20 new vehicles slated for release this year, offering significant opportunities if executed well. Tavares emphasized the need for substantial improvements, particularly in North America, to maximize long-term potential.
Stellantis’ results were released shortly after the second-quarter earnings reports from U.S. automakers General Motors and Ford. GM raised several key financial targets after surpassing Wall Street’s earnings expectations, while Ford reported a decline in adjusted profit, leading to investor disappointment.
For the first half of 2024, Stellantis posted net revenues of nearly $92 billion, down 14% compared to the same period last year. Despite these challenges, Stellantis has already begun production on 10 of the 20 new product launches planned for 2024, highlighting its efforts to reinvigorate its market presence amidst operational difficulties.
