Stellantis Announces 20 New Products in 2024 Despite H1 Challenges
Stellantis, the world's fourth-largest automaker, has announced plans to launch 20 new products in 2024, with 10 already in progress by the end of the first half. However, the company's performance in the first half of 2024 was affected by various challenges, including lower volumes and mix, inventory reduction, temporary production gaps, and a lower market share, particularly in North America.
Stellantis' operating income for the period stood at €8.5 billion, a significant decrease of €5.6 billion compared to the same period last year. Net profits also halved to €5.6 billion. Revenue dropped by 14% to €85 billion ($92.3 billion). The company's free cash flow was near zero due to negative working capital development and higher investment spend.
Looking ahead, Stellantis faces uncertainty in light electric and battery electric vehicles (LEV/BEV) adoption rates in the stock market today. The company is taking steps to mitigate these challenges, including localising its supply chain and gaining more control over its finished vehicle logistics. Stellantis expects to achieve positive free cash flow by the end of the year.
In the UK, Stellantis is conducting a strategic review of its business model due to the impact of the Zero Emission Vehicle (ZEV) mandate. While the company has partnered with SVOLT Energy Technology to supply lithium-ion batteries for electric vehicles starting in 2025, specific details about additional partnerships in the UK market are not yet available.
Despite facing several challenges in the first half of 2024, Stellantis remains committed to its product launch plans and is taking proactive measures to improve its financial performance and adapt to the changing automotive landscape. The company's strategic review in the UK and its partnership with SVOLT Energy Technology are steps towards ensuring its long-term success in the electric vehicle market.
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