The first half of 2024 has not been as good as I expected Stellantis: net profit fell by almost 50% between January and JuneThe numbers have been particularly good for us overall, but less so in North America, a key region for Stellantis.
The recipe to solve it will focus on the US inventory reduction, lowering production to adjust supply and demand. Although some brands could also fall if they continue to post poor numbers.
Fewer cars and maybe fewer brands, but a million-dollar salary for the CEO of Stellantis
Some 5.6 billion euros: That was Stellantis’ net profit in the first six months of 2024, according to It is stated in its first half results reportIt has also reduced its operating margin to less than 10%, a figure well below what it had planned to achieve this year. Stellantis has just posted record profits in 2023.
“The company’s performance in the first half of 2024 has not met our expectations”said Tavares during the presentation of these results, which are far from the expectations of this automotive giant that houses more than 12 brands.
The market where it is feeling the brunt of this is North America: sales fell by 18%. This is where it will focus its changes to get back on track to achieve the objectives set for 2024. The roadmap for the second half of the year involves adopting several measures, especially in North America.
The first reduce available unitscutting production and the second lower prices even further of cars in this market. Two aspects that will allow “measuring supply and demand,” highlights Natalie Knight, financial director of Stellantis.
Although There could be brands affected: Knight hinted that Stellantis could reconsider “the best home” for Maseratiits luxury brand. Which would mean that it would disappear from some markets. And its deliveries fell by more than half in the first months of 2024, falling to 6,500 units.
On the other hand, Stellantis plans Reduce costs: both in executive salaries and logistics costs by around 25%. In total, they expect to save around 500 million euros more in the second half of the year.
Although in April the shareholders’ meeting approved a millionaire Annual salary for Carlos Tavares, CEO of the company: 36.5 million euros. It is more than 60% of what he received in 2022 and amounts to about 100,000 euros a day. This, According to Automotive Newshas drawn criticism from shareholders over its spending strategy.
New releases with which they hope to improve numbers. Beyond lowering production and prices in the US, Stellantis has high hopes for launches in the second half of the year that it hopes will help improve the company’s profitability in general.
In America, it will launch the new electric Dodge Charger and the renewed RAM 1500, while for Europe it is preparing an offensive of its industrial models, whose range has been completely renewed. In addition, in the Old Continent it will launch the new generation of the Peugeot 3008, which is launched on its new platform that includes thermal and electric engines.
In addition, this year it will also launch the first electric car, Leapmotor T03, born from its alliance with this Chinese firm. Its trial production has already begun in Poland and it is expected to be launched in September, when it will begin mass production. It will be sold in nine European markets, including Spain along with Germany, France and Italy.
Photo| Tasnim News Agency – Wikimedia
Source: www.motorpasion.com
