Car giant Stellantis 鈥� which includes Fiat, Chrysler, Jeep and Peugeot 鈥� on Wednesday reported a 70 per cent fall in 2024 profits against the previous year because of troubles in North America.
The group, which is looking for a new CEO, also reported a 17 per cent fall in sales revenue to 156.9 billion euros ($164.6 billion) which it blamed on 鈥榯emporary gaps in product offerings鈥� and sales promotions to reduce stocks.
It said profit fell from 18.6 billion euros in 2023 to 5.5 billion euros last year, with the number of cars sold falling by 12 per cent.
Shares in the Italian-US-French group 鈥� whose 14 brands include Fiat, Peugeot-Citroen, Opel, Maserati, Chrysler, Ram and Jeep 鈥� fell by more than five per cent in morning trading on the Paris stock exchange.
Stellantis chief executive Carlos Tavares quit in December amid differences over how to confront the group鈥檚 profit slump.
鈥業n the 90 days since the leadership transition began, and while the process to select the next CEO within the first half of 2025 continues, the interim leadership team has taken quick, decisive actions to improve the company鈥檚 performance and profitability,鈥� said a Stellantis statement announcing the results.
It said this included: 鈥楶rioritising critical launches to better meet evolving customer needs, especially in the US.鈥� The group promised 10 new launches in 2025.
Stellantis suffered severe difficulties last year due to delayed model launches because of electrical problems and lower sales in North America, its key market.
Third quarter sales in North America plunged by 36 per cent by the number of vehicles sold and 42 per cent by revenue as the group offered promotional deals as US dealerships struggled to reduce their inventories, with many consumers considering Stellantis vehicles expensive compared to competitors.
The situation improved in the fourth quarter with sales down 28 per cent by volume compared to the same period in 2023.
Sales in North America fell by 25 per cent by volume in 2024 overall, and 27 per cent by revenue.
Sales revenue in Europe, another key market, fell by 11 per cent.
The company posted an operating margin of 5.5 per cent in 2024, down from 12.8 per cent in 2023.
The figure is a key measure of profitability per vehicle, and it fell drastically in the second half of the year as sales volumes fell, it offered rebates and it halted production at some factories, coming in at just 0.3 per cent.
Since its creation in 2021 Stellantis had always managed to post double-digit operating margin as Tavares cut costs and trimmed back rebates.
For 2025 Stellantis was vague about the outlook, promising only to boost sales revenue and a single-digit operating margin. It said it expected a real rebound in the second half of the year.
Stellantis has significantly revised its approach since Tavares鈥檚 December 1 exit, with the interim CEO giving guarantees to the French and Italian governments on maintaining production and investment in both countries.
It also rolled back plans to cut 1,100 jobs at a US Jeep factory.
The group had 2,58,000 employees worldwide at the end of 2023.