Carlos Tavares commented on Stellantis’ results for the first half of 2024. The automotive group’s profits plummeted by 48 percent, while revenues fell by 14 percent. The CEO of Stellantis said that “performance in the first half of 2024 was below our expectations, due to a complex industry context and some internal operational issues.”
Carlos Tavares admits that Stellantis’ 2024 results are below forecasts
“While we are implementing the necessary corrective actions, we have also launched an aggressive product strategy, which includes the launch of at least 20 new models throughout the year. This offensive will offer greater opportunities if well executed. We still have a lot of work to do, particularly in North America, to maximize our long-term potential,” Tavares continued.
“We are working hard to meet our full-year margin (adjusted operating income) forecasts and to generate positive cash flows in the second half of the year,” said Chief Financial Officer Natalie Knight during a media meeting. Stellantis’ forecasts include positive industrial free cash flow for the year.
Tavares stated that he is already taking “decisive actions to address operational challenges,” and Knight said that, looking at the second half of the year, the group has decided to “take the bull by the horns.” She stated that among the planned measures will be the reduction of inventory and logistics, especially in North America, which is the most challenging market for the Group. “That’s the market that needs the most work and where we’re most focused looking at the second half of the year,” Knight said.
“There have been operational problems in North America, where I think we could have achieved better results.” The CFO added that the group will reduce production in North America this quarter, as well as prices. “It’s important for us to calibrate how supply and demand meet,” she said. In fact, in the United States, in recent weeks, the Group’s dealers have expressed their concerns about their uncompetitive products, so much so that the Fiat 500e and Dodge Hornet are among the slowest-selling cars.