Stellantis reports 27 percent decline in net revenues in Q3
Date
10/31/2024 7:56:11 AM
(MENAFN) Stellantis, the troubled carmaker formed by the 2021 merger of PSA Peugeot and Fiat Chrysler Automobiles, reported a significant 27 percent decline in net revenues for the third quarter, primarily due to challenges in launching new products and efforts to reduce excess inventories. This downturn resulted in a 20 percent drop in global vehicle shipments, which fell from 1.5 million to 1.2 million units compared to the same period last year. The company’s net revenues for the quarter amounted to €33 billion (approximately USD36 billion), a steep decrease from €45 billion reported in the third quarter of 2023.
The revenue declines were widespread, with all regions except South America experiencing double-digit decreases. North America led the declines with a staggering 42 percent drop in revenues, totaling €12.4 billion, while European revenues fell by 12 percent to €12.5 billion. Over the first nine months of 2024, Stellantis saw total shipments decrease by 13 percent, down to 4 million vehicles from 4.6 million in the previous year, as the company moves forward with 20 new product launches globally this year.
In response to these challenges, Stellantis’s newly appointed chief financial officer, Doug Ostermann, noted that the company was ahead of schedule in reducing inventories in North America, aiming to meet targets by the end of November. He reported a slight increase in US market share, which rose from 7 percent in July to 8 percent in September, with an optimistic projection of reaching 10 percent by the end of the month. Ostermann emphasized the importance of normalizing inventory levels as essential for aligning the business and ensuring a strong start to 2025.
The company faces additional pressures, including the potential threat of a strike by the United Auto Workers union in North America and scrutiny from Italian lawmakers regarding significant production cuts in Italy, home to Stellantis brands like Fiat, Maserati, and Alfa Romeo. These developments come amid broader industry challenges and intensified competition from Chinese automakers, prompting Stellantis to issue a profit warning for 2024 as it seeks to revitalize its US operations.
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