Stellantis NV said Wednesday its 2024 net profit fell sharply to$ 5.8 billion ( 5.5 billion euro ), a 70 % drop compared to 2023 ‘s , record high.
The findings reflect a , stormy year , for the creator of Chrysler, Dodge, Van and Ram and other companies that included weak sales across several key regions, price cuts including layoffs, fights with unions and dealers, and the sudden departure of CEO Carlos Tavares in December.
Stellantis reported the least total profits since the merger that led to the current company, which is now the third-largest ford worldwide in terms of overall units, in 2021, which was marked by the merger of Fiat Chrysler Automobiles NV and French automaker Groupe PSA.
Even though there are signs of a turnaround, Stellantis executives acknowledged in an investor call that 2025 would not be the year’s double-digit profit margins and that major performance improvements do not occur until the second half of the year.
John Elkann, Stellantis ‘ board seat, told shareholders Wednesday that 2024 was” a year we are not happy of”, a mood that was rapidly echoed by Chief Financial Officer Doug Ostermann, who said it had been” a pretty rough time”.
The transatlantic company’s adjusted operating income decreased by 64 % to$ 9 billion ( 8.6 billion euros ), and its margin decreased by 5.5 % after reaching double digits and being among the best in the sector for the previous three years.
In a warning that had caught some off guard and rapidly led to a management shakeup before Martins ‘ eventual exit, Stellantis had warned investors in September to expect significantly lower profit margins amid its turbulent time. The lower end of that updated profit forecast was matched by the 5.5 % number.
Net revenues for 2024 decreased by 17 %, to$ 164.7 billion ( 156.9 billion euro ). Additionally, the company’s industrial free cash flows significantly decreased by 147 % to a negative$ 6.3 billion ( 6 billion euro ), demonstrating significant cash burn that investors were also informed about last fall.
Stellantis shares were down near to 4 % first Wednesday.
However, the season ended with at least some indications of a rise. Bloated supplier inventory, which included older models, had made it difficult for retailers to order more new products straight from the factory, which had been a major issue for the manufacturer in 2024, particularly in the United States.
But Stellantis said by the end of December it had reduced those inventories year-over-year by 18 % worldwide, and by 20 % in the United States. U. S. seller share stood at 304, 000 cars, below the bank’s reduction target of 330, 000 cars. Additionally, the carmaker has begun releasing important new vehicles on its fresh versatile programs, known as STLA Medium, STLA Huge, and Smart Car.
In its income speech, the carmaker described as 2025 guidance for positive net income growth, a gain to positive cash flow, and adjusted profit margins in the “mid-single figures.”
Elkann and Ostermann constantly acknowledged that the recovery process may be slower and that no significant decline in profits or market share should be anticipated for this year.” The future is brighter from where we were in 2024,” Elkann said to investors.
In the carmaker’s profit-rich U. S. market,  , vehicle sales fell 15 %  , overall in 2024, and 7 % for the fourth quarter. However, the automaker reduced prices and provided significant incentives in the final weeks of the year, which helped increase sales and relieve the dealer lot’s glut of used cars.
Stellantis executives are optimistic that, beyond price reductions, several new vehicle offerings in 2025 can help lift sales. In the U.S., those new offerings will include a replacement SUV for the defunct Jeep Cherokee, filling a significant gap in the Jeep brand’s lineup, a gas version of the Dodge Charger muscle car, as well as refreshed and all-new Ram pickups that executives are hoping will be popular with consumers.
However, President Donald Trump’s proposed sweeping tariffs and other potential changes to support electric vehicles could affect those vehicles ‘ sales and success. In addition to having several factories in both Canada and Mexico, which could be subject to severe new tariffs from Trump as soon as the next week.
After Tavares left at the end of last year, Stellantis is still looking for its next CEO as it navigates the policy uncertainty. It established a special committee to oversee the effort spearheaded by Elkann. The business acknowledged on Wednesday that the search is” well underway” and promised to have a replacement in place sometime in the first half of this year.
The carmaker proposed a dividend to shareholders of 71 cents ( .68 euro ) per share pending their approval.
Stellantis was the last automaker from the Detroit Three to release earnings. General Motors Co. in January , posted , net 2024 income of$ 6 billion, well down from 2023 thanks to costly changes to its China and robotaxi operations. And Ford Motor Co. earlier this month , said , its net income was up substantially last year, to$ 5.9 billion, beating expectations.
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