Last week, the Stellantis Group published its results for the first half of 2024, and they weren’t good. The net benefit for H1, € 5.6 billion, decreased by 48% compared to the record-breaking performance last year. Meanwhile, the manufacturer is confronted with delivery problems for its new, long-awaited enlargement of its electric portfolio.
Turnover for H1 has fallen 14% to € 85 billion, and sales and benefits are lower than analysts expected. “Stellantis faces a very heckled period,” commented CEO Carlos Tavares, but he thinks the situation will improve in the second half of the year.
The operating margin of the group remained at 10% of general turnover, 4.4% less than last year but still in a very good average for car companies. Tavares says this is due to “a serious reduction in costs of components, personnel, and logistics”.
Aggressive competition
Sales have decreased in Europe (-6%) and, more noticeably, in the U.S. (-18%). “The group has also been confronted with a very aggressive pricing competition, mostly so from the Chinese manufacturers,” indicated Natalie Knight, Stellantis CFO.
That’s why Stellantis has made a deal with its new Chinese partner, Leapmotor. The first cars will arrive soon in Europe and be sold via the Stellantis networks. The U.S. market will be the first priority in the second half of this year: Stellantis wants to readjust tariffs and rebate schemes and slow down production to get rid of oversized stocks.
Delivery delays
Stellantis also struggles with delivery delays. Consumer organizations like TestAankoop/TestAchats are even considering suing the manufacturer for not delivering on the promised date. The delivery of the very interestingly priced new Citroën ë-C3 EV has already been postponed several times, creating a waiting list of over 30,000 units.
It was due to begin at the end of June, but now it will be in September or later. Stellantis apparently has problems with the final tuning and quality control of the car’s software logistics.
Also, the delivery of the new Peugeot e-3008, another interesting addition to the EV portfolio, is faltering. Initially, deliveries had to start in February, but they were delayed until March at the earliest in France and June in most other European countries.
The boss reacts
Problem child U.S.
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