Car giant Stellantis, which holds top brands from Fiat, Chrysler, Jeep to Peugeot under its umbrella, reported on Wednesday a 70% fall in 2024 net profits against the previous year because of troubles in North America.
The group, which is looking for a new CEO, also reported a 17% fall in sales revenue to 156.9 billion euros ($164.6 billion) which it blamed on "temporary gaps in product offerings" and sales promotions to reduce stocks.
It said profit fell from 18.6 billion euros in 2023 to 5.5 billion euros last year, with the number of cars sold falling by 12%.
Shares in the Italian-U.S.-French group – whose 14 brands include Fiat, Peugeot-Citroen, Opel, Maserati, Chrysler, Ram and Jeep – fell by more than 5% in morning trading on the Paris stock exchange.
Stellantis chief executive Carlos Tavares quit in December amid differences over how to confront the group's profit slump.
"In the 90 days since the leadership transition began, and while the process to select the next CEO within the first half of 2025 continues, the interim leadership team has taken quick, decisive actions to improve the company's performance and profitability," said a Stellantis statement announcing the results.
It said this included: "Prioritizing critical launches to better meet evolving customer needs, especially in the U.S.."
The group promised 10 new launches in 2025.
Stellantis suffered severe difficulties last year due to delayed model launches because of electrical problems and lower sales in North America, its key market.
Third quarter sales in North America plunged by 36% by the number of vehicles sold and 42% by revenue as the group offered promotional deals as U.S. dealerships struggled to reduce their inventories, with many consumers considering Stellantis vehicles expensive compared to competitors.
The situation improved in the fourth quarter, with sales down 28% by volume compared to the same period in 2023.
Sales in North America fell by 25% by volume in 2024 overall and 27% by revenue.
Sales revenue in Europe, another key market, fell by 11%.
The company posted an operating margin of 5.5% in 2024, down from 12.8% in 2023.
The figure is a key measure of profitability per vehicle, and it fell drastically in the second half of the year as sales volumes fell, it offered rebates and it halted production at some factories, coming in at just 0.3%.
Since its creation in 2021, Stellantis has always managed to post double-digit operating margins as Tavares cut costs and trimmed back rebates.
For 2025, Stellantis was vague about the outlook, promising only to boost sales revenue and a single-digit operating margin. It said it expected a real rebound in the second half of the year.
Stellantis has significantly revised its approach since Tavares's Dec. 1 exit, with the interim CEO giving guarantees to the French and Italian governments on maintaining production and investment in both countries.
It also rolled back plans to cut 1,100 jobs at a U.S. Jeep factory.
The group had 258,000 employees worldwide at the end of 2023.
