Stellantis, the car company created by merging Fiat Chrysler and PSA Group, had a tough year in 2024. The company faced big financial losses and lost ground in the market. The executive chairman called the year a failure, leading to changes in leadership and a major plan to turn things around.
In 2024, Stellantis’ profits dropped by 70%, down to $5.8 billion. Their profit margin fell to 5.5%, much lower than the double-digit margins they had in the past. Revenue also dropped by 17% to $165 billion, and they shipped 12% fewer vehicles.
The situation was especially bad in North America, where profit margins fell from 15.4% to just 4.2%, and their market share dropped by five percentage points. This poor performance also hurt workers represented by the UAW union, who received much smaller profit-sharing payments of $3,780, far less than workers at GM and Ford.
Stellantis blamed its struggles on several issues, including having too much unsold inventory, prices that were too high, gaps in their vehicle lineup, and not adapting well to different regional markets and customer preferences. To fix these problems, the company cut production, reorganized its structure, and adjusted prices and incentives.
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Looking to the future, Stellantis is working on a plan to recover. They plan to spend more on marketing to boost sales and brand recognition. They’re also giving regional teams more power to understand and meet local customer needs and regulations. A big part of their plan is launching new vehicles, like the Dodge Charger, Ram 1500 Ramcharger EV, updated Ram heavy-duty trucks, and the 2025 Jeep Wagoneer S electric SUV. These new models aim to fill gaps in their product lineup, which was a major issue in 2024. Additionally, Stellantis will start sharing financial results every quarter, following the standard practice in the industry.
The company is also searching for a new CEO after Carlos Tavares stepped down. They’re looking for someone with strong leadership skills, the ability to adapt to different cultures, and a deep understanding of finance, technology, and managing relationships with stakeholders. They hope to have a new CEO in place by the middle of the year. The interim CEO believes the changes being made now will set the stage for the new leader to succeed.
Stellantis is still focused on its long-term goals of competing in the shift toward electric and self-driving vehicles. They know that being big and making advances in software and autonomous technology will be key to succeeding in the future, so they plan to invest heavily in these areas.
Published: Feb 26, 2025 10:00 pm