Stellantis, the Netherlands-based automotive giant known for brands like Chrysler, Dodge, Jeep, Peugeot, Citroën, and Maserati, announced a 12% decline in revenue for the first quarter of the year. The company attributed this decrease to lower sales and foreign exchange effects, despite maintaining firm net pricing.
Shares of Stellantis were down 2% at the market open on Tuesday following the announcement of these results.
Chief Financial Officer Natalie Knight explained that year-over-year shipment and net revenue comparisons were challenging due to the company’s transition to a “next-generation product portfolio manufactured on new platforms.”
Stellantis has ambitious plans for the year, aiming to launch a total of 25 new models, including 18 battery-electric vehicles (BEVs). The company introduced four models in the first quarter, setting the stage for what Knight described as “materially improved growth and profitability in the second half of the year.”
In the first quarter, consolidated shipments declined by 10% to 1.335 million units. Stellantis attributed this decline to production actions and inventory management in preparation for the “new product wave” expected in the second half of the year.
Similar to other companies in the auto industry, Stellantis is navigating challenges related to its commitment to the electric transition. The company has pledged that BEVs will represent 100% of its sales in Europe and 50% of those in the U.S. by the end of the decade. However, it faces hurdles such as supply chain disruptions, uncertainties regarding consumer demand, and the readiness of charging infrastructure.
