Stellantis has reported a sharp 70% drop in net profit for 2024 as the global car industry faces multiple challenges. The company, which owns brands such as Chrysler, Opel, Maserati, Jeep, Peugeot, and Vauxhall, saw a significant decline in sales across all major markets. The results highlight the impact of supply chain disruptions, trade tensions, and economic uncertainty.
Major Financial Decline
The carmaker confirmed that net profit fell to €5.5 billion, marking a steep decline compared to previous years. Revenue dropped 17% to €156.9 billion, while operating income declined 64% to €8.6 billion. Global vehicle shipments were down 12%, largely due to inventory reductions and gaps in product offerings. Following the announcement, Stellantis’ share price fell 4.9%.
Industry experts point to weaker demand for vehicles, rising interest rates, and changing consumer preferences as major factors contributing to the decline. The company has faced difficulties in keeping up with evolving market trends, especially in the electric vehicle (EV) sector.
Leadership Changes and Strategic Challenges
The financial downturn comes at a critical time for Stellantis, which is currently without a permanent CEO. Former CEO Carlos Tavares unexpectedly stepped down in December 2024. The company has yet to announce his replacement but expects to do so in the first half of 2025. In the meantime, leadership is focused on stabilizing operations and strengthening relationships with key stakeholders, including dealers, suppliers, and government officials.
Stellantis Chairman John Elkann acknowledged the difficulties but emphasized progress in several strategic areas. These include the launch of new multi-energy platforms, expanding EV battery production, and strengthening partnerships such as the Leapmotor International deal.
Broader Industry Struggles
Stellantis is not the only car manufacturer facing trouble. The entire automotive sector is dealing with major economic and regulatory pressures. Some of the biggest issues include:
- Trade tensions between the EU, US, and China. The EU is increasing tariffs on Chinese EV imports, while the US is considering new tariffs that could impact vehicles made in Mexico and Canada.
- Regulatory changes in major markets. The EU and the US are implementing stricter emission regulations, which are forcing automakers to invest more in EV technology.
- Weaker consumer demand. Economic uncertainty and high inflation have made car buyers hesitant, leading to declining sales for many brands.
Even luxury carmaker Aston Martin is making tough decisions. The company recently announced a 5% workforce reduction as part of a cost-cutting plan led by its new CEO, Adrian Hallmark.
Despite the financial setback, Stellantis remains focused on turning things around in 2025. The company is working on expanding its EV lineup to compete with other major automakers. Additionally, Stellantis aims to improve its market share by introducing more affordable options and increasing production efficiency.
However, several challenges remain. The ongoing tariff disputes could make cars more expensive, impacting demand further. At the same time, consumer preferences are shifting, with more buyers looking for hybrid and fully electric vehicles. Stellantis will need to adapt quickly to these changes to maintain its position in the industry.
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