Poor sales results in the North American market have been identified as the main cause of Stellantis’ 48% drop in net profits in the first half of 2024. The automotive group, which owns more nationally and internationally known brands than any other major group, reported revenues of 85 billion euros, marking a 14% decrease compared to the same period of the previous year, while the net profits fell to 5.6 billion euros.
Stellantis: Profit decline due to poor sales in North America
In an official statement, the group highlighted an overall reduction in vehicle sales and, in general, of its products, attributing the cause to “a combination of inventory reduction initiatives, temporary production interruptions due to a generational transition of the portfolio, and a lower market share, particularly in North America”.
In short, the North American black hole, in terms of lost earnings, had nothing short of disastrous effects for Stellantis. For this reason, the group has announced its intention to fill the “gaps” in its product portfolio with a series of new vehicle launches planned for the near future. The arrival of models such as Peugeot 3008 and 5008, Lancia Ypsilon, Maserati Grecale Folgore, Ram 1500, and Citroën Basalt is known, along with a renewed range of light commercial vehicles.
Stellantis CEO Carlos Tavares stated during the presentation of the first-half data: “Our company’s performance in the first half of 2024 was below our expectations, reflecting both a challenging market context and our operational issues”. Tavares, thanking every employee for their teamwork and commitment during this crucial chapter for the company, emphasized the importance of maximizing long-term potential, especially in North America.
In light of these disappointing figures, Tavares promised to intervene to address the problems in North America. The automaker’s net profits halved in the first six months of the year: Stellantis had reported net profits of about 11 billion euros in the same period last year. Tavares identified North America as a place where there is “a lot of work to do”, citing inventory management issues as well as the decrease in market share.