Stellantis Profits Dropped by 70% Globally in 2024

Stellantis recorded a staggering 70% profit drop last year due to declining sales in several key markets.

Multinational automotive conglomerate Stellantis has charted a staggering 70% drop in its profit last year. This was due to declining sales of its product globally, where its most profitable market, North America, also experienced poor sales throughout 2024.

According to its official statement, Stellantis has posted a net profit of only €5.5 billion (RM25.59 billion) in 2024, which is a significant drop from the €18.62 billion (RM86.62 billion) profit recorded in the previous year. After adjusting for expenses and other costs, the automotive giant ultimately lost over €100 million (RM465 million) in last year alone, which is no good news for any automotive brands to swallow.

In North America alone, vehicle deliveries dropped by 25% from 1.903 million units to only 1.432 million last year, which resulted in a total revenue drop of 27%. In comparison to the European market, the firm only experienced an 8% drop in vehicle delivery, with a total of 2.576 million units shipped last year.

Surprisingly, one regional market that Stellantis performed positively in last year was South America, where sales grew by 4% to 912,000 units.

Part of its sales decline in North America is due to the transition phase that two of its key brands underwent in said market, namely both Ram and Dodge. Not to forget, the firm also cited reduced production in this market due to a planned inventory reduction that also affected its sales performance last year.

Stellantis Chairman John Elkann

Stellantis chairman John Elkann described the firm’s 2024 performance as “a year of stark contrasts for the company, with results falling short of our potential,” albeit he still claimed that the firm had “achieved important strategic milestones.”

The chairman cited the launch of its new multi-energy vehicle platforms, the start of in-house EV battery production, as well as the new joint venture with Chinese automaker Leapmotor to launch affordable EVs in Europe, as among the strategic milestones achieved by the firm last year. As a result, the firm expects to return to "profitable growth" in 2025.

Not to forget, Stellantis currently runs without a CEO at the helm, after its previous boss, Carlos Tavares, was abruptly ousted from the firm last year. With that being said, the firm is confident that a new CEO will be appointed in the first half of 2025, with the search for one being “well under way” as of writing.