Stellantis closed the first quarter of 2024 with a double-digit contraction. Revenues fell 12% to 41.7 billion euros, while deliveries declined 10% to 1.335 million units. The group led by Carlos Tavares, which nevertheless saw an 8% increase in BEVs and a 13% increase in LEV (light electric commercial vehicles), justified the negative results with a series of factors: not only lower volumes weighed on revenues, but also unfavorable exchange rates and mix, only partially offset by stable prices, while sales were influenced by “actions on production” and “inventory management in preparation for the arrival of new products in the second half of 2024”. In addition, the comparison is with a “first quarter of 2023 in which deliveries had grown to replenish stock at the network after a prolonged period of supply constraints.”
Stellantis reports revenue and delivery decline in Q1 2024
“While a year-over-year comparison of Q1 2024 deliveries and net revenues is challenging due to the transition to our next-generation product portfolio based on new platforms, we have achieved a clear improvement in commercial dynamics with retail sales outpacing deliveries to the network,” adds CFO Natalie Knight.
“We are reducing inventory to strengthen our already solid prices in relative terms in anticipation of the launch of new or mid-cycle products this year in key regions.” In this regard, the decline in North America is 20% for deliveries and 15% for revenues, while in Europe the decline is 6% and 13%. The Middle East and Africa saw a 42% increase in volumes and a 24% increase in revenue. South America also recorded a decline with 7% and 2%, and Maserati, caused by the poor commercial results of Grecale and Levante on the North American market, for a contraction in deliveries of 61% to 3,300 and revenues of 5% to 313 million euros.
Knight recalls the market introduction of “four new models in the first quarter of 2024 against a plan for 25 vehicle launches this year.” These include 18 electric variants that lay “the foundation for a marked improvement in growth and profitability in the second half of the year.” This is why the group, also forecasting a “favorable” environment for revenue performance, reiterates its commitment to achieving a double-digit adjusted operating margin for the full year of 2024 and to “a positive net industrial cash flow despite macroeconomic uncertainties.”