Down 70 percent

Profit slump! Car giant announces shock figures

Business is going particularly badly for Stellantis in North America.(Bild: AFP/SCOTT OLSON/Getty Images via AFP)

The crisis at Stellantis continues to progress: in view of difficulties in North America, the car giant has reported a 70 percent drop in profits for the past year compared to the previous year.

Net profit for 2024 amounted to 5.5 billion euros, the company announced on Wednesday. In 2023, it was still 18.6 billion euros. The car manufacturer's turnover fell by 17 percent compared to the previous year to 156.9 billion euros.

The company explained the decline in sales with "the temporary absence of certain models in the Group's range" with brands such as Peugeot, Jeep, Fiat or Opel and sales campaigns to reduce "inventories". The results are in line with Stellantis' announcements and analysts' expectations.

Sluggish business in the USA
In December, Stellantis boss Carlos Tavares resigned with immediate effect. Prior to this, sales had been sluggish for months, particularly in the USA; in addition, the launch of several new models had to be postponed due to problems with the electronics. In September, the CEO had to admit that his target of a double-digit profit margin this year would not be achievable.

"In the 90 days since the change of leadership began", the interim management had taken "swift and decisive action to improve performance and profitability", Stellantis explained. This includes "prioritizing critical launches to better meet evolving customer needs, particularly in the US". The company announced the launch of ten new models in 2025.

"2024 was a year of stark contrasts for the company, with results falling short of our potential, yet we achieved important strategic milestones," explained John Elkann, Chairman of the Board of Directors.