Stellantis’s profits for the first six months of this year almost halved compared with the same period in 2023, with the company blaming lower sales volumes and a reduced product mix for its weakened performance.
It made a profit of €5.6 billion (£4.7bn), 48% down on the €10.9bn (£9.2bn) it made in the six months to the end of June 2023.
The car-making giant’s operating income fell by 40%, from €14.1bn (£11.9bn) to €8.5bn (£7.1bn), which it attributed to a dip in North America.
Free cash flow fell from €8.7bn (£7.3bn) to just €392 million (£330m).
Stellantis also said it was impacted by several model-generation changeovers, such as for the Peugeot 3008 and 5008. Unspecified “management actions” have been enacted with a focus on Maserati’s sales, as well as the wider company’s performance in North America and Europe.
The company said the launch of 20 new products, including the Lancia Ypsilon, Ram 1500 pick-up and a renewed van line-up, would boost its performance during the second half of 2024.
Chinese joint-venture partner Leapmotor will also launch its T03 city car and C10 SUV later this year. Its roll-out will begin in Europe, followed by South America, the Middle East, Africa and India and Pacific Asia.
“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,” said Stellantis chief Carlos Tavares.
He added: “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.”
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