Stellantis: A Year of Challenges, A Year of Promise

Stellantis, the world's leading car manufacturer, has had a challenging year in 2024, but the company is poised for a strong comeback in 2025. The company's full-year 2024 results, released on February 26, 2025, showed a decline in net revenues and profits, but Stellantis remains optimistic about its future prospects.



The company's net revenues in 2024 were €156.9 billion, down 17% compared to 2023, with consolidated shipment volumes decreasing 12% due to temporary gaps in product offerings and inventory reduction initiatives. Net profit fell by 70% to €5.5 billion, and adjusted operating income (AOI) margin dropped to 5.5%. Industrial free cash flows were negative €6 billion, reflecting the decline in income and temporary enlarged working capital impact due to production adjustments.



Despite these challenges, Stellantis made significant progress in 2024. The company initiated a generational product portfolio transition, launching the first products on the STLA Medium and STLA Large platforms, and scaled the globalization of the Smart Car platform through the European launch of the Citroën C3/ë-C3. Additionally, Stellantis started production of EV batteries through its joint ventures and launched the Leapmotor International partnership.



Stellantis' interim leadership team took quick, decisive actions to improve the company's performance and profitability in the 90 days since the leadership transition began. These actions included completing inventory management initiatives, prioritizing critical launches, making better use of available flexibilities under CO2 regulations, working with dealer bodies and suppliers, and engaging with governments and regulators.

Looking ahead to 2025, Stellantis expects a return to profitable growth and positive cash generation. The company's 2025 financial guidance includes "Positive" Net Revenue Growth, "Mid-Single Digits" AOI margin, and "Positive" industrial free cash flows. The process to appoint a new permanent Chief Executive Officer is well underway and will be concluded within the first half of 2025.



In conclusion, while 2024 was a challenging year for Stellantis, the company made significant progress in its product portfolio transition and took decisive actions to improve its performance. With a strong financial guidance for 2025, Stellantis is well-positioned to return to profitable growth and positive cash generation. Investors should keep a close eye on Stellantis as it continues to drive forward with energy and determination, engaging with key stakeholders and moving decision-making closer to its customers.