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Stellantis fell to net losses in the second half of last year and showed expectations for the coming year as sales of the world’s fourth-largest automaker fell in all its major markets.
Owners of the Peugeot, Fiat and Jeep brands reported net losses of €127 million for the period, compared with a profit of €7.7 billion a year ago. Revenue fell 21% to €71.9 billion.
The company is driving a drastic change after CEO Carlos Tavares set off after a sharp deterioration in economic performance.
It pledged Wednesday to regain cash flow and revenue growth under new leadership, but the weak phase of the publication was weaker than expected this year.
Since Tavares left in December, the organization has stepped up efforts to reduce U.S. stocks and is on an interim leadership team led by John Elkann, Scion chairman of the Agnelli family. Under tensions with government, dealers and suppliers.
“As 2025 progresses, we are firmly focusing on gaining market share and improving financial performance,” Elkann said on Wednesday.
Strandis said the launch of 10 new models and a more flexible product portfolio will help it regain revenue growth and provide an adjusted “middle digit” operating margin in 2025.
The forecast is slightly below analyst estimates, which are compiled by Alpha visible to the data provider, with a profit margin of more than 6%. The margin last year was 5.5%, well below the forecast for double-digit growth in early 2024.
Strandis shares fell nearly 6% before suffering some losses earlier on Wednesday.
Tom Narayan, capital market analyst at Royal Canada, said the operating margin guide for 2025 is a “touch light.” “The prospect does make room for resetting expectations that can often be related to new management teams,” he added.
Stellantis confirmed it will choose a new CEO in the first half of 2025, and the director will be responsible for continuing the turnaround initiated by Elkann.
The growing uncertainty posed by widespread tariffs threatened by U.S. President Donald Trump also shrouded its forecast prospects.
Last month, Elkann outlined a $5 billion investment proposed in Trump in the U.S. However, the automaker remains one of the closest neighbours to impose tariffs, with 40% of cars sold in Canada and Mexico for sale.
Asked about the threat of tariffs, Elkann said the company supported Trump’s policy of “promoting American manufacturing” and was “working to understand what consequences this will have for us”, but refused to share further details.
He also said he believes the group’s regional and global scope will help develop challenges such as different regulations around the world. Elkann added that Stellantis’ next CEO will need “leadership and cultural flexibility” to handle the company’s different regional operations.
Additionally, Aston Martin announced Wednesday that it will reduce its global workforce by 5%, or 170 employees, as a cost-cutting drive for its new CEO Adrian Hallmark part of.
The company also said it plans to launch its first electric vehicle later in the decade rather than in 2026, adding that it will focus on plug-in hybrid technology due to volatility in market conditions.
Since Hallmark took over as CEO in September, he has been committed to bringing greater predictability and stability to the group’s financial performance, beating analyst expectations with £2 million cash flow in the fourth quarter .
