Stellantis Reports 70% Drop in 2024 Earnings Amid Industry Challenges

Turin, Italy — Stellantis, the multinational auto giant, announced on Wednesday a staggering 70% decline in net profit for 2024. The company, which encompasses well-known brands including Jeep, Dodge, Fiat, Chrysler, and Peugeot, reported a net profit of 5.5 billion euros (approximately $5.77 billion), a significant drop from 2023’s earnings.

Analysts were anticipating a full-year profit of 6.4 billion euros, reflecting a disappointing year for the automaker amidst a backdrop of global challenges. Stellantis attributes its lower earnings to several factors, including decreased demand for vehicles, particularly in North America and the competitive landscape in China.

“While 2024 was a year of stark contrasts for the company, we achieved important strategic milestones,” said Stellantis Chairman John Elkann in a statement released alongside the financial results. He noted that the company began the rollout of new multi-energy platforms and products, and initiated EV battery production through joint ventures.

Elkann also indicated that Stellantis is “firmly focused” on regaining market share and improving its financial performance as it aims to return to positive growth in 2025. He emphasized this goal during discussions about the firm’s future strategies.

Despite the challenges, Elkann’s outlook remains optimistic as Stellantis expects to name a new chief executive within the first half of 2025, following the departure of previous CEO Carlos Tavares late last year. An interim executive committee, led by Elkann, is currently overseeing operations until a permanent appointment is made.

On the stock market, shares of Stellantis fell by 4% following the earnings announcement, underscoring investor apprehension in light of the company’s financial outlook. While many automotive peers are navigating similar issues, Stellantis’ current performance signals significant hurdles ahead.

The automotive industry has faced a wave of challenges in recent months, including a noticeable decline in demand globally and specific performance issues in key markets like North America and China. Stellantis recently issued a profit warning in September, signaling lower-than-expected sales across most regions.

Looking to the future, Elkann reiterated Stellantis’ commitment to innovation and adaptation in a rapidly changing market. “Our robust plans for financial recovery and strategic partnerships in the electric vehicle sector will be vital as we advance toward 2025,” he stated.

As the auto market continues to fluctuate, stakeholders are left to monitor Stellantis’ trajectory closely in hopes of witnessing a turnaround in the coming years.