Significant Drop in Stellantis' 2024 Net Profits by 70% Revealed
Stellantis Faces Challenges in 2024, Plans for Recovery in 2025
In a year marked by significant changes and financial challenges, automotive conglomerate Stellantis faced a 20% decrease in revenue for its Fiat Chrysler division in Q3 2024. This decline was part of a larger trend, as the company reported a 48% drop in revenue in North America during the first half of the year.
The year 2024 also saw a 17% year-over-year decline in Stellantis' net revenue, resulting in a total of €156.9 billion ($164.5 billion). Alongside this, the company reported a 64% decrease in adjusted operating income and negative free cash flows of €6 billion.
Consolidated shipment volumes for Stellantis fell 12% due to temporary gaps in product offerings and inventory reduction initiatives. This decline in vehicle sales was a contributing factor for Stellantis' significant revenue drop.
In response to these challenges, Stellantis' CEO, Carlos Tavares, resigned on Dec. 1, 2024. His departure paved the way for Antonio Filosa, a longtime executive who previously led Stellantis operations in North and South America, to take over as CEO on June 23, 2025.
In an effort to turn things around, Stellantis reported a 27% year-over-year drop in net revenue for Q3 2024, leading to the company lowering its 2024 guidance and initiating corrective actions.
Despite the difficulties faced in 2024, Stellantis remains optimistic for the future. The company plans to launch 10 new products in 2025, prioritising critical launches in key markets, especially in the U.S. Stellantis aims to improve its performance in 2025, with a focus on launching new electrified models and production of batteries.
For its 2025 guidance, Stellantis forecasts positive net revenue growth and a "mid-single digit" adjusted operating income margin. The company also expects positive industrial free cash flows this year, despite elevated industry uncertainties.
As Stellantis looks towards the future, it is clear that the company is committed to making improvements and rebounding from the challenges of 2024. With a focus on new product launches and a renewed emphasis on electrification and battery production, Stellantis is poised to make a strong comeback in the coming years.
