Stellantis Profit Drops 70% in 2024, Yet the Company Sees a Promising Future | Carscoops
New models from Alfa Romeo, Chrysler, Maserati, and Jeep are approaching
8 hours ago
by Michael Gauthier
Stellantis experienced a troubling 2024, with a 70% decline in net profit, amounting to $5.8 billion.
Net revenues fell by 17%, although the company successfully trimmed down its inventories.
With the launch of two new Jeep models, including one to succeed the Cherokee, the company is optimistic about a better 2025.
The year 2024 was tumultuous for Stellantis, marked by some positive news overshadowed by significant challenges. Notably, CEO Carlos Tavares was effectively removed from his position as U.S. sales plummeted. All major brands—Alfa Romeo, Chrysler, Dodge, Jeep, and Ram—experienced declines, with Ram suffering a loss of over 100,000 units.
In light of these dire results, it’s not surprising that Stellantis’ net profit decreased by 70% to €5.5 billion ($5.8 billion/£4.5 billion). Net revenues dropped to €156.9 billion ($164.6 billion/£129.8 billion), while industrial free cash flows were negative €6 billion ($6.3 billion/£5 billion).
While it's challenging to glean positive aspects from such figures, Stellantis managed to reduce excessive inventories significantly. In the U.S., dealer stock fell by 20% to 304,000 units, surpassing their initial target of 330,000 units.
Additionally, Stellantis announced it has initiated its "generational product portfolio transition," launching new vehicles on the STLA Medium and STLA Large platforms. However, this process has not been without complications, as evidenced by various delays and substantial discounts on the Dodge Charger Daytona and Jeep Wagoneer S.
Acting CEO John Elkann described 2024 as a “year of stark contrasts,” acknowledging that the company "fell short of our potential." Nevertheless, he remains hopeful for 2025, anticipating the debut of ten new products.
Details remain sparse, but the company did reference the "Jeep Cherokee replacement," hinting that Jeep may aim to retire the Cherokee nameplate.
The Jeep Recon is also set to launch later this year, having been teased in a high-profile Super Bowl commercial featuring Harrison Ford. It is expected to share significant design elements with the Wagoneer S and include a dual-motor all-wheel drive system capable of producing up to 600 hp (447 kW / 608 PS) and 617 lb-ft (836 Nm) of torque.
Regarding future offerings, Stellantis confirmed there will be Alfa Romeo, Chrysler, and Maserati models developed on the STLA Large platform, although the timeline for these releases is unclear. The company also mentioned new Jeeps based on the STLA Frame, likely referring to extended-range variations of the Wagoneer and Grand Wagoneer.
While revenues are anticipated to rise in 2025, the company has acknowledged several challenges, including tariffs, regulations, and heightened competition, likely referencing the increasing presence of Chinese automakers in Europe.
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