Stellantis Sales Slump Blamed on Poor North American Performance

A poor sales performance in the North American market is blamed for Stellantis reporting a staggering 48% year-on-year slump in net profits for the first half of 2024 forcing the company to ditch some underperforming brands.

The automaker group boasting more household-recognized brand badges than any other sees revenues of just €85 billion ($92.1 billion), 14% less than the same period a year earlier and net profits down to just €5.6 billion ($6.07 billion).

At an investor and media briefing, CEO Carlos Tavares admits that some of its 14 brands that fail to deliver adequate sales will be ditched or sold off. He says: "If they don't make money, we'll shut them down. We cannot afford to have brands that do not make money."

In a company statement, the group points to an overall drop in vehicle sales and mix brought on by “a combination of inventory reduction initiatives, temporary product production gaps due to a generational portfolio transition and lower market share, particularly in North America.”

It says it is addressing the “gaps” in its product portfolio with a host of new vehicle launches planned in the near future. These include the Peugeot 3008 and 5008, Lancia Ypsilon, Maserati Grecale Folgore, Ram 1500 and Citroën Basalt plus a revitalized range of light-commercial vehicles.

Tavares adds: “The Company’s performance in the first half of 2024 fell short of our expectations, reflecting both a challenging industry context as well as our own operational issues. While corrective actions were needed and are being taken to address these issues, we also have initiated an exciting product blitz, with no fewer than 20 new vehicles launching this year, and with that brings bigger opportunities when we execute well.

"We have significant work to do, especially in North America, to maximize our long-term potential. I want to thank every employee for their teamwork and commitment during this very consequential chapter of our story.”