Stellantis revenues down 12 per cent in first quarter

Stellantis saw a 12 per cent decrease in its net revenues in the first quarter of 2024 compared to a year ago as it prepares for the launch of more than two dozen new vehicles in 2024.

The company reported Tuesday revenues of $61.4 billion on shipments of 1.3 million vehicles. That's a decline of 10 per cent in shipments.

“While Q1 2024 year-over-year shipments and net revenues comparisons were difficult due to transitions in our next generation product portfolio manufactured on new platforms, we are delivering clear improvements in key commercial dynamics with customer sales outpacing shipments,” said Stellantis chief financial officer Natalie Knight.

“We are reducing inventories to reinforce our strong relative pricing ahead of our new or mid-cycle product launches this year in key regions.”

In North America, Stellantis experienced a 15 per cent decline in net revenues to $28.46 billion and shipments slipped 20 per cent to 407,000 units compared to the first quarter of 2023.

Knight expects improvements in those numbers in the second half of 2024 with Stellantis introducing eight new electric vehicles to the North American market in 2024.

“During Q1 2024, we have introduced four new models out of our full-year launch plan of 25 models, including 18 BEV nameplates, which we believe sets the stage for materially improved growth and profitability in the second half of the year,” Knight said.

Among the first of those EV models in North America and the first to use the STLA large platform will be the new generation Dodge Charger produced at the Windsor Assembly Plant.

Stellantis is hoping the introduction of new products will reverse the slide in its U.S. sales in 2023. While most of its competitors enjoyed sales gains in the first quarter, Stellantis's U.S. sales declined 10 per cent.

Net revenues also fell by 13 per cent in Europe despite sales being up six per cent. Sales declined by 46 per cent in Asia and two per cent in South America.

The Middle East and Africa reported revenues rose by 26 per cent on increased sales of 23 per cent.

Despite the decline in net revenues and shipments, Stellantis reported its overall global sales in the first quarter (1.5 million vehicles) were unchanged from the first quarter of 2023.

The company said it had reduced its global inventory to 1.4 million vehicles.

“In Q1 we deliver improvement in our inventory position versus where we've been at the end of last year,” Knight said. “We've maintained strong relative net pricing.”

The company also reported improved sales of its electric and hybrid products.

In the U.S., four of the top five selling hybrids are Stellantis products, including the Windsor-built Pacifica Hybrid minivan.

“Our progress on electrification also continues,” Knight said.

“BEV sales are up eight per cent globally. PHEVS in North America are up nearly 80 per cent year to date.

“Most importantly we have positioned ourselves for a firework of product initiatives in the next 12 months that are bigger than anything we've ever delivered to market.”

Ford Motor Company reported its first quarter profits fell 28 per cent with its sales of gas-powered trucks and hybrids dipping.

The company recorded a profit of $1.78 billion on quarterly revenues of $58.6 billion.

Rebounding truck and EV sales for General Motors helped the Detroit automaker post a profit of $3.83 billion on revenues of $58.9 billion.