Stellantis Q4 2024: Shipments Decline, But New Models Drive Optimism

Stellantis Q4 2024 Shipments Decline, but New Models Show Promise

Stellantis recently announced that its global total shipments for the fourth quarter of 2024 are expected to decline by 9% year-over-year, reaching approximately 1.395 million units. This decrease aligns with a 5% drop in underlying sales. While this might seem negative, it's an improvement from the 20% decline witnessed in the third quarter. The improvement is attributed to the conclusion of inventory reduction actions in the U.S. and the launch of new products in Europe which helped fill gaps in the product lineup.

Regional Performance Breakdown

North America experienced a more significant drop, with shipments falling by 28% year-over-year, primarily due to the focused inventory reduction efforts. The company reduced U.S. dealer stock by roughly 80,000 units. In contrast, Enlarged Europe saw a 6% year-over-year decline in shipments—a notable improvement compared to the 17% decline in the third quarter. This positive shift is largely credited to the successful launch of the Citroen C3/e-C3, which addressed a temporary shortage in the B-segment.

Strong Early Demand for New Models

Despite the overall decline in shipments, Stellantis reported strong early demand for its next-generation models. Orders exceeded 90,000 units for the Citroen C3/e-C3, and more than 140,000 orders were received for models based on the STLA Medium platform (including popular vehicles like the Peugeot 3008, Peugeot 5008, and Opel Grandland). This positive indicator suggests strong future growth potential.

Third Engine' Performance

The company's "Third Engine" (a term likely referring to its operations outside of core markets) also showed resilience, with shipments increasing by 5% year-over-year. Growth in South America (12%) and stability in the Middle East & Africa offset declines in China and the India & Asia Pacific regions. The South American rebound is linked to stronger demand and the recovery from previous production disruptions. The Middle East & Africa saw gains, but these were slightly hindered by import restrictions in Algeria.

Future Outlook and Cloud Collaboration

Stellantis is slated to report its full-year 2024 results on February 26, 2025. Recently, the company signed a non-binding memorandum of understanding to accelerate the cloud-based development of its vehicles, signifying its investment in advanced technology and potentially signaling more efficient production processes in the future.

Stock Performance

At the time of this writing, the company's shares experienced a slight increase in premarket trading. However, it's important to remember that stock prices fluctuate, and this should not be interpreted as a guaranteed indicator of future performance. Always consult a financial advisor before making investment decisions.

Overall, Stellantis' Q4 2024 performance presents a mixed bag. While shipments declined, the company's focus on inventory management and the strong reception of new models offer a degree of optimism for the future. Further clarity will be available upon the release of the full-year financial results.

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