In 2024, Stellantis reported a net profit of 5.5 billion euros, marking a substantial 70% decrease from the previous year’s 18.6 billion euros. This decline was notably below analyst expectations, which had anticipated profits of around 6.4 billion euros, as compiled by LSEG. Despite this setback, shares for the company have risen by over 7% in Milan this year.
The company has been navigating multiple challenges, including underperformance in North America, a global decrease in new car demand, and particularly tough market conditions in China. An unexpected profit warning was issued in September 2024, forecasting lower sales across most regions for the latter half of the year. Consequently, they adjusted their operating income margin expectations to be between 5.5% and 7%, down from the previously expected double-digit figures.
Stellantis has expressed confidence in returning to profitable growth and positive cash flow by 2025. This optimism is fueled by strategic initiatives such as the introduction of new multi-energy platforms and products, commencing EV battery production through joint ventures, and partnering with Leapmotor International. Notably, these efforts are part of a broader strategy to recover from setbacks and capitalize on emerging market trends.
Stellantis is also in the process of naming a new chief executive following Carlos Tavares’s departure. John Elkann, currently leading an interim executive committee, has stated the importance of both expanding market presence and enhancing financial outcomes in the coming years. Despite the setbacks of 2024, Elkann emphasized the achievement of key strategic milestones and the potential for significant growth in the future.
While Stellantis faced notable financial challenges in 2024, its forward-looking strategies and leadership initiatives suggest a path towards recovery and growth in 2025. The company remains determined to overcome current hurdles and secure its position within the competitive automotive industry.
