North America Problems Cause 70% Profit Drop for Stellantis.
Automobile company Stellantis, which owns Fiat, Chrysler, Jeep, and Peugeot, announced on Wednesday that its 2024 profits had dropped 70% from the previous year due to issues in North America.
The company, which is searching for a new CEO, also revealed a 17 per cent decline in turnover to 156.9 billion euros ($164.6 billion), which it attributed to “temporary gaps in product offerings” and stock-cutting sales programs.
According to Stellantis, profit dropped from 18.6 billion euros in 2023 to 5.5 billion euros in the previous year. Carlos Tavares, the chief executive of Stellantis, resigned in December due to disagreements on how to address the company’s declining profitability.
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 stated that these included “prioritising critical launches to better meet evolving customer needs, especially in the US.” Ten more releases in 2025 were promised by the group.
Stellantis cited increasing challenges, such as delayed model introductions due to electrical issues and decreased sales in its primary market of North America.
Source: NEWSCENTRAL
