Stellantis – the mother or father firm of Jeep, Ram, Peugeot and Fiat, amongst others – reported a big revenue lower in 2024, nevertheless it’s forecasting a restoration this yr.
Earlier this week, Stellantis introduced its web revenue had dropped from €18.6 billion (A$31.1 billion) in 2023 to €5.5 billion (A$9.2 billion) in 2024, a decline of 70 per cent.
It’s the newest in what’s been a tough 12 months for the Netherlands-based conglomerate, whose CEO Carlos Tavares resigned with fast impact in December 2024, having initially introduced his plans to retire in 2026.
Regardless of this, Stellantis – at the moment with out a everlasting CEO – says it’s been making quite a lot of key actions to show its fortunes round.
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“Within the 90 days for the reason that management transition started, and whereas the method to pick the subsequent CEO throughout the first half of 2025 continues, the interim management crew has taken fast, decisive actions to enhance the corporate’s efficiency and profitability,” it mentioned in a media assertion.
It says it expects a “return to worthwhile development and optimistic money era in 2025”.
In accordance with Stellantis, it plans to launch 10 new fashions throughout its steady of over a dozen manufacturers in 2025, virtually all of which will likely be on new STLA household platforms. It says it’s prioritising launches of important fashions in key segments.
Different measures to strengthen the corporate embody rebuilding relationships with US and European sellers, bettering communication with suppliers, and “making higher use of obtainable flexibilities beneath CO2 laws”.
The US has historically been a key marketplace for Jeep, Ram, Dodge and Chrysler even earlier than the manufacturers have been pulled beneath the Stellantis umbrella firstly of 2021, nonetheless friction between the conglomerate and native sellers has been exacerbated by slowing gross sales.
Final yr, Stellantis Nationwide Supplier Council chairman Kevin Farrish – who runs a Jeep, Ram, Dodge and Chrysler dealership in Virginia – despatched an open letter to Mr Tavares, accusing the corporate of ignoring warnings which has led to “catastrophe” for all concerned.
“For over two years now, the US Stellantis Nationwide Supplier Council has been sounding this alarm to your US govt crew, warning them that the course you had set for Stellantis within the US was going to be a catastrophe in the long term,” mentioned Mr Farrish within the letter.
“A catastrophe not only for us, however for everybody concerned – and now, that catastrophe has arrived.
“In 2023, you engineered a document yr of profitability for Stellantis, incomes you the title of the highest-compensated automotive CEO. You personally earned a document quantity of just about US$40 million (A$59.6 million) that yr.
“Sadly, the engineering and structuring of that yr have led us to precisely the place we informed your executives we might be in the present day. The reckless short-term decision-making to safe document income in 2023 has had devastating, but totally predictable, penalties within the US market.
“These penalties embody the fast degradation of our iconic American manufacturers – manufacturers like Jeep, Dodge, Ram, and Chrysler which have over a century of historical past in America.
“The market share of your manufacturers has been slashed practically in half, Stellantis inventory worth is tumbling, vegetation are closing, layoffs are rampant, and key executives fleeing the corporate. Investor lawsuits, provider lawsuits, strikes – the fallout is mounting. Your personal distribution community, your seller physique, has been left in an anaemic and diminished state.”
Whereas Stellantis’ US division pushed again on the seller council chief’s letter, calling it a “private assault”, Mr Tavares resigned solely a handful of months later.
An motion plan for the US, which included elevated incentives on 2024 and older mannequin yr automobiles there to assist clear the glut of inventory, has helped, with Stellantis reporting its US inventories on the finish of 2024 have been 20 per cent decrease year-on-year than 2023.
In Australia, Stellantis is simply straight accountable for distributing Jeep, Fiat, Abarth and Alfa Romeo. It additionally distributes Leapmotor, a Chinese language model with which Stellantis has established a three way partnership.
Ateco handles the distribution of Maserati and Ram, whereas Inchcape distributes Peugeot. It additionally beforehand dealt with Citroen, which departed Australia final yr.
2024 was a tough yr for Stellantis manufacturers in Australia, with all of them posting double-digit declines. Right here’s how they fared:
- Ram: 3852 automobiles, down 43.6 per cent
- Jeep: 2377 automobiles, down 48.7 per cent
- Peugeot: 1896 automobiles, down 24.6 per cent
- Alfa Romeo: 561 automobiles, down 21.6 per cent
- Fiat (together with Abarth): 527 automobiles, down 30.2 per cent
- Maserati: 377 automobiles, down 40.9 per cent
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