NEWSLETTER
To say that 2024 was a bad year for Stellantis (Stress) The third largest car manufacturer in the world is a euphemism.
Last year, Chrysler's parent company, Dodge, Jeep and Ram Trucks was going through the movements.
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In summary, he dealt with bad sales resulting from expensive and outdated cars, huge cost cuts that saw Americans lose their jobs, problems with UAW and discontent dealers, and the sudden departure of CEO Carlos Tavares just before Christmas.
Stellantis
Stla reports a massive global loss
As a result of the madness of 2024, Stellantis reported on February 26 that his net gain in 2024 fell by 70% to $ 5.8 billion, the lowest total gain that has been reported since its creation in 2021.
Although executives at the level of the North America brand say that the era after the Tavas offers new opportunities, Stellantis executives told analysts during their gain call to not wait too long.
They pointed out that 2025 will be difficult to predict only the gain margins of a single digit of approximately 5.5% this year, and added that significant performance improvements will not be fruitful until they are in the year.
John Elkann, president of the Board of Stellantis, told investors on Wednesday that 2024 was “a year that we are not proud”, a feeling that quickly was echoing the financial director Doug Ostermann, who said it had been “a very difficult year.”
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Difficult times for Stellantis in North America
In North America, where his business focuses mainly on Chrysler, Dodge, Jeep and Ram, Stellantis lost $ 1.8 billion in the period from July to December 2024. In comparison, he raised $ 5.5 billion in operational income adjusted during the same period of the previous year.
The net income in the region fell 27% to $ 66.7 billion, which blamed the lowest volumes after it stopped producing the Dodge Charger and Challenger, the Chrysler 300, and the Jeep Cherokee and Renegade.
The North American profit margin of the car manufacturer also fell from 15.4% in 2023 to 4.2%. In addition, Stellantis reported an 80% drop in North America operating income to $ 2.8 billion, citing “significant impacts of volume/mixing, higher sales incentives and higher guarantee costs.”
Despite Stellantis's lowest objective by 2025, the company aims to increase its presence on this side of the Atlantic. Plan to invest more in the marketing of the United States and adopt a more consistent incentive strategy.
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During the earning call, the financial director of Stellantis, Doug Ostermann, stressed that the car manufacturer reduced production and increased incentives to stop his inflated inventory during the second half of 2024.
He pointed out that, as a result of the initiative, the number of cars not sold in the United States fell from 430,000 to 304,000 in the last months of 2024, a good position to start factories again and have a sound base in 2025.
“I want to recognize that the actions to reduce the inventory and progress that our prices reposition in relation to the results pressed by peers in 2024, particularly in the second half,” Ostermann said. “But this also establishes the region in a very improved position to start 2025”.
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Stla executives are optimistic
Stellantis is confident that his new cars in 2025 can help bring his head to dealers.
Jeep is expected to obtain a replacement for the medium -sized Jeep Cherokee, the 'Muscle' brotherhood 'is expected to receive the Dodge Charger Sixpack of gasoline this summer, and RAM Trucks will welcome RAM 1500 Ramcharger Erev at the end of this year.
In addition, President John Elkann said that the search for his new CEO is underway, noting that the appointment will be announced at the end of this year.
“We have excellent candidates, both internally and externally,” he said. “And the conversations we have are very encouraging so that we have the best possible CEO for the company and keep the way with the announcement of our next CEO in the first half of 2025.
Stellantis NV is negotiated under Stla in the New York Stock Exchange.
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