Stellantis has reported its financial results for 2024, showing significant revenue and profit declines compared to the previous year, with net revenues down by 17% to €156.9 billion and net profit falling 70% to €5.5 billion. The company is poised to pivot and aims for profitable growth and positive cash generation by 2025.
The financial health of Stellantis was presented by President John Elkann, who emphasized the firm's resolve to tackle the challenges posed by high operational costs, soft demand, and fierce competition from Chinese automakers. "Despite 2024 being a year of stark contrasts for the company, with results below our potential, we achieved significant strategic milestones," Elkann stated.
Specifically, Stellantis noted its adjusted operational income had decreased by 64% to €8.6 billion, sustaining a margin of 5.5%—much lower than the 12.8% margin recorded during its peak year, 2023. The company suffered negative industrial free cash flow of €6 billion.
The total liquidity available remained strong at €49.5 billion, with a net industrial financial position of €15.1 billion. Inventory management was also addressed, with total inventories decreasing by 18% compared to the previous year, surpassing earlier goals.
Elkann outlined the company's plans for future product launches, clarifying the importance of fostering market share growth and improved profitability. "We are firmly committed to gaining market share and improving financial performance throughout 2025," he reiterated, establishing strong expectations for the coming year.
Stellantis has already begun preparations for new vehicle models under its next-generation platforms anticipated to be released throughout 2025. This includes the rollout of hybrid and electric vehicle versions, aiming to reinvigorate their product lineup against the backdrop of shifting automotive demands.
Leadership within Stellantis has also undergone transition. Following the unexpected resignation of Carlos Tavares, the interim executive committee has implemented rapid actions to reinforce operational efficiency. The appointment of a new CEO is expected by mid-2025, meant to guide the company through its recovery phase.
Elkann has expressed optimism about Stellantis' ability to rebound from the challenges faced and highlighted the effective measures taken during the turbulent periods. The firm plans to launch ten new models by 2025, showcasing their commitment to meeting customer needs through innovative offerings.
At the same time, the company proposed a dividend of €0.68 per share to shareholders, significantly lower than the previous year's €1.55, reflecting the current fiscal constraints. This decision has served as both reassurance and warning to investors as the operational strategies evolve.
Echoing the sentiments of some industry critics, Matteo Salvini, Italy's Deputy Prime Minister, remarked on the dramatic nature of Stellantis' financial situation, attributing part of the difficulties faced by the automotive industry to governmental policies. "The data from Stellantis is dramatic; it didn't take a scientist to understand the imposed suicide by Brussels in the name of electric cars would have casualties among workers and engineers, not among politicians," he stated.
With numerous challenges on the horizon, Stellantis remains committed to addressing performance and profitability. Elkann concluded, “We are determined to secure market share and increase our financial performance as we progress through 2025.” His remarks encapsulate the company’s vision for resilience and recovery amid volatility.