Financial Setback and Recovery Plans
Global automotive powerhouse Stellantis projects revenue growth in 2025 following a significant decline in earnings for the past year. The company, which oversees well-known brands such as Jeep, Dodge, Fiat, Chrysler, and Peugeot, reported a full-year net profit of 5.5 billion euros ($5.77 billion) for 2024—a sharp 70% drop from the previous year’s 18.6 billion euros. This result fell short of market expectations, with analysts previously forecasting a net profit of 6.4 billion euros, according to a consensus compiled by LSEG. Despite the downturn, Stellantis remains optimistic about achieving profitable growth and positive cash flow in the coming year, attributing this to early signs of commercial recovery amid industry uncertainties.
Leadership Transition and Strategic Development
As Stellantis projects revenue growth, it is also undergoing a leadership transition. The company has been in search of a new chief executive following the unexpected departure of Carlos Tavares late last year. Until a successor is appointed—expected within the first half of 2025—Chairman John Elkann will oversee an interim executive committee. Despite the management shake-up, the company continues to advance its strategic initiatives. In 2024, Stellantis introduced new multi-energy platforms and products, commenced EV battery production through joint ventures, and launched the Leapmotor International partnership. These developments, according to Elkann, mark crucial steps in positioning the company for long-term market competitiveness.
Market Challenges and Future Outlook
Stellantis, like many major automakers, has been grappling with various industry-wide setbacks. The company has faced declining demand for new vehicles globally, performance challenges in North America, and difficulties in China—the world’s largest automotive market. In September, Stellantis issued a profit warning, citing lower-than-expected sales across multiple regions in the second half of 2024.
Additionally, the firm’s 2024 net revenues stood at 156.9 billion euros, reflecting a 17% decline from the previous year, with an adjusted operating income margin of 5.5%—the lower end of its revised financial guidance. Despite these obstacles, Stellantis projects revenue growth and remains committed to regaining market share and strengthening financial performance throughout 2025. However, investors reacted cautiously to the latest earnings report, causing the company’s shares, listed in Milan, to drop by 4% in early trading on Wednesday.
