Stellantis See Revenue Drop 12% Drop For Q1 Of 2024

Stellantis posted a 12% drop in revenue for Q1 2024, but the firm remains upbeat given its plans for the remainder of this year.

Stellantis reported a 12% drop in revenue in the first quarter (Q1) of this year due to lower volumes, unfavourable product mix, and foreign exchange dynamics. 

CFO Natalie Knight said shipments and revenues were affected by the transition to the group's new product portfolio, based on new platforms. 

Stellantis is reducing inventories to reinforce strong relative pricing ahead of new or mid-cycle product launches in key regions. Key model transitions in Europe include new generations of the Peugeot 3008 and 5008 compact and mid-sized SUVs, including EV versions of both, and Citroen C3 and C3 Aircross small car and SUV, also with low-cost EV options. 

Introduction of new models with full-EV options later this year are poised to bolster Stellantis' efforts later this year, especially in key markets like Europe.

"While Q1 2024 year-over-year shipments and nett revenues comparisons were difficult due to transitions in our next generation product portfolio manufactured on new platforms, we are delivering clear improvements in key commercial dynamics with customer sales outpacing shipments. We are reducing inventories to reinforce our strong relative pricing ahead of our new or mid-cycle product launches this year in key regions,” Natalie adds. 

Nett revenue was €41.7 billion (approx. RM212.93 billion) in the Jan-March period, which falls short of initial analyst expectations of €42.6 billion (approx. RM217.52 billion).  Analysts at Jefferies further noted that the below-consensus revenue was mostly due to the quarterly performance in Europe, where both volume, price, and product mix were worse than expected. 

However, Stellantis is confident that a plan for 25 new model or facelift launches planned throughout 2024, including 18 EVs, will help improve growth and profitability in the second half of the year.

“During Q1 2024, we have introduced four new models out of our full-year launch plan of 25 models, including 18 BEV nameplates, which we believe sets the stage for materially improved growth and profitability in the second half of the year,” Natalie added.

The new and localised (CKD) Peugeot 408 fastback crossover launched recently by the newly established Stellantis Malaysia arm.

More offerings from other brands under Stellantis' portfolio are expected to debut locally later this year.

Locally, the newly formed Stellantis Malaysia recently kick-started its efforts with the launch of the new and locally assembled (CKD) Peugeot 408 fastback crossover. More locally-assembled Peugeot models, which roll off the line from the firm’s plant in Gurun, Kedah, are poised to launch later too.

More immediately, Stellantis Malaysia is also tipped to make a big splash at the upcoming Malaysia Auto Show 2024 later this month. As noted in prior reports, the firm is set to showcase new metal from other brands besides Peugeot, and Leapmotor - its Chinese EV-making joint-venture - is amongst which. KR