In the first half of 2024, Stellantis posted mixed financial results. Net sales reached €85 billion, a decrease of 14% compared to the same period in 2023. This decline was mainly due to lower sales volumes and an unfavourable product mix. Net income also fell sharply to 5.6 billion euros, down 48%. This decline was due to several factors, including unfavourable currency effects, high restructuring costs and a lower performance in North America.
Carlos Tavares, CEO of Stellantis, admitted that the results were disappointing, but stressed that the company had taken decisive steps to turn the situation around. "The company's first half results did not meet our expectations, reflecting both a difficult industrial environment and our operational difficulties," said Tavares. He added that corrective measures had been taken, particularly to improve performance in North America, where the company faced significant challenges in terms of market share and inventory management.
Despite these challenges, Stellantis has maintained a current operating margin of 10%, demonstrating its ability to reduce component, personnel and logistics costs. This rigorous cost management has helped to mitigate the impact of the decline in sales. In addition, Stellantis expects the situation to improve in the second half of 2024 thanks to strategic investments and optimised working capital management.
A strategic product offensive and technological advances
Despite its declining financial results, Stellantis remains resolutely focused on the future, with an ambitious product offensive planned for 2024. No fewer than 20 new models will be launched this year, strengthening the company's position in various market segments. Among these new products, the Peugeot 3008 and 5008, based on the multi-energy STLA Medium platform, stand out with their range of up to 680 km and the all-new Panoramic i-Cockpit. For its part, Lancia is making a comeback with the new Ypsilon, a B-segment luxury saloon that symbolises a new era for the Italian brand.
The commercial vehicle segment is not left out, with the launch of the new Pro One range of vans under the Citroën, FIAT Professional, Opel, Peugeot and Vauxhall brands. Stellantis Pro One has established itself as the leader in commercial vehicle sales in Europe, South America, the Middle East and Africa. In addition, the launch of the Citroën Basalt, a new coupé SUV, marks an important milestone for the brand, with debuts planned in India and South America.
Technological innovation also plays a key role in Stellantis' strategy. Between 2024 and 2026, the company plans to use the STLA Large platform for several vehicles, including the Dodge Charger Daytona and Jeep Wagoneer S. This multi-energy platform, optimised for different electric drive modules, promises an impressive range of 800 km. In parallel, Stellantis is working on advanced battery technologies through a five-year collaboration with CEA, a leading research institute.
Stellantis also introduced several new connected features to enhance the user experience. For example, the e-ROUTES app enables real-time route planning for electric vehicles, while the ChatGPT-enhanced virtual assistant will be available as standard on the group's new and existing vehicles. These innovations aim to transform the driving experience by offering convenient and connected solutions, thereby strengthening Stellantis' competitiveness in the global market.
Increased commitment to innovation and sustainability
Despite the current financial challenges, Stellantis continues to focus on innovation and sustainability to strengthen its market position. The company is committed to achieving at least double-digit recurring operating margins and positive industrial free cash flow by 2024, despite macroeconomic uncertainties. This commitment is based on a clear strategy aimed at optimising costs, improving operational efficiency and launching innovative products that meet consumer expectations.
Stellantis has also implemented several initiatives to promote sustainability and reduce the carbon footprint of its activities. The company is exploring innovative technologies for the design of battery modules and cells to offer more ecological and efficient solutions. In addition, Stellantis has announced strategic partnerships with research institutions and technology companies to accelerate the development of new powertrain and connectivity technologies.
Hybrid and electric vehicles play a central role in Stellantis' strategy for a more sustainable future. In Europe, the company saw a 53% year-on-year increase in sales of hybrid vehicles, driven by the popularity of electrified dual-clutch transmissions (e-DCT). These vehicles offer an exceptional driving experience with lower CO2 emissions, while being more affordable than 100% electric or plug-in hybrid models.
Long-term outlook and targets
For the remainder of 2024 and beyond, Stellantis remains optimistic about its growth and development prospects. The company plans to launch several new models based on the STLA Large platform, which offers greater flexibility and performance. In addition, the Leapmotor International joint venture, which aims to introduce high-tech electric vehicles in several markets, is expected to help strengthen Stellantis' position in the low emission vehicle segment.
AI-driven technology platforms such as STLA Brain, STLA SmartCockpit and STLA AutoDrive are key to Stellantis' technological advances. Their integration into new vehicles is planned by the end of 2024, with full deployment in 2025. These technologies will enable Stellantis to offer innovative and connected mobility solutions that meet the needs of today's consumers.
Finally, Stellantis continues to transform the mobility experience with software solutions and connected services. Revenues from these services have more than doubled since the company was founded in 2021, demonstrating the growing importance of digital technologies in the automotive sector. Practical examples include the e-ROUTES app, the ChatGPT-enhanced virtual assistant and the AppMarket Connectivity Central Hub, designed to deliver an enhanced user experience and advanced features.
In conclusion, despite a first half of 2024 marked by financial and operational challenges, Stellantis remains resolutely focused on the future with a clear strategy focused on innovation, sustainability and efficiency. The numerous initiatives and product launches planned for the rest of the year should enable the company to strengthen its market position and achieve its long-term goals.
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