2:24 pm, July 25, 2024
Stellantis saw its profits take a major tumble in the first half of the year, amid a slump in sales and a reduced vehicle line-up.
The European congratulate has posted a net profit of €5.6bn (£4.7bn), which represents a 48% nosedive on the same period in 2023.
The outfit, which includes the likes of Citroen, Peugeot and Vauxhall, also saw its operating income collapse from €14.1bn (£11.9bn) to €8.5bn (£7.1bn).
In a damning set of accounts published this morning (Jul 25) bosses admitted the performance ‘fell short of expectations’.
They put the poor results down to a ‘challenging industry context’ as well as the company’s own ‘operational issues’, which included a major decline in the North American market.
Other worrying figures included cash flow, which plummeted an enormous 63% from €13.39bn (£11.28bn) to €4.89bn (£4.12bn) in just one year.
Reacting to the results, Stellantis CEO Carlos Tavares, said: ‘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.
‘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 maximise our long-term potential. I want to thank every employee for their teamwork and commitment during this very consequential chapter of our story.’
Among the new models, included in Tavares’ ‘product launch’ are the Peugeot 3008 and 5008, the new Lancia Ypsilon and the Maserati Grecale Folgore.
Stellantis is also backing the likes of the Ram 1500 and Citroen Basalt to help boost upcoming figures.
A spokesman for the carmaking giant said: ‘Lower financial performance in the first half of 2024 was driven principally by lower volumes and mix, with the challenging volume comparison 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.
‘With a firm focus on successfully launching a wave of significant new products in the near term, the company expects the impact of the product portfolio’s coverage gaps to have peaked, while management actions to improve the performance of North America, Enlarged Europe and Maserati create significant performance improvement opportunities for the second half of 2024 and full-year 2025.’
