Stellantis Revises 2024 Financial Forecast Amid North American Struggles and Global Market Challenges

Stellantis Revises 2024 Financial Forecast Amid North American Struggles and Global Market Challenges

(IN BRIEF) Stellantis has revised its 2024 financial guidance due to significant performance challenges in North America and a global market slowdown. The company plans to cut North American vehicle shipments by over 200,000 in the second half of 2024 and aims to reduce U.S. inventory levels faster than originally planned. Stellantis now forecasts an adjusted operating income (AOI) margin of 5.5% to 7.0%, down from its previous double-digit target. Additionally, it expects industrial free cash flow to fall between -€5 billion and -€10 billion, compared to the prior expectation of positive cash flow. The company remains optimistic that its recovery actions will drive stronger performance in 2025 and beyond.

(PRESS RELEASE) AMSTERDAM, 30-Sep-2024 — /EuropaWire/ —  Stellantis N.V. has revised its 2024 financial outlook, driven by the need to expand corrective measures in North America and address a weakening global market landscape. The company’s actions include accelerating efforts to reduce U.S. inventory levels and addressing performance challenges in North America.

Stellantis is now targeting a U.S. dealer inventory of no more than 330,000 units by the end of 2024, shifting from its previous goal of achieving this by Q1 2025. To meet this objective, the company will cut North American vehicle shipments by over 200,000 in the latter half of 2024, doubling the previously forecasted reduction. Additionally, Stellantis will increase incentives for older model year vehicles and implement productivity improvements, adjusting both costs and capacity.

The updated forecast also accounts for a weakened global market environment, with the industry experiencing lower demand and intensified competition, particularly from Chinese automakers.

Key updates to Stellantis’ 2024 market outlook and financial guidance include:

• Adjusted Operating Income (AOI) Margin: Revised to 5.5% – 7.0% for the full year 2024, down from the previous “double-digit” target. The bulk of this reduction stems from the North American corrective measures, with additional impacts from weaker-than-expected sales across other regions.
• Industrial Free Cash Flow: Now expected to range between -€5 billion and -€10 billion, a shift from the previous forecast of positive cash flow, largely due to the lowered AOI outlook and higher working capital requirements in the second half of the year.

Despite these challenges, Stellantis remains confident that its recovery efforts will strengthen operational and financial performance in 2025 and beyond, as it continues to leverage its competitive advantages.

About Stellantis

Stellantis N.V. (NYSE: STLA / Euronext Milan: STLAM / Euronext Paris: STLAP) is one of the world’s leading automakers aiming to provide clean, safe and affordable freedom of mobility to all. It’s best known for its unique portfolio of iconic and innovative brands including Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, FIAT, Jeep®, Lancia, Maserati, Opel, Peugeot, Ram, Vauxhall, Free2move and Leasys. Stellantis is executing its Dare Forward 2030, a bold strategic plan that paves the way to achieve the ambitious target of becoming a carbon net zero mobility tech company by 2038, with single-digit percentage compensation of the remaining emissions, while creating added value for all stakeholders. For more information, visit www.stellantis.com.

Media Contacts:

communications@stellantis.com

Fernão SILVEIRA
+31 6 43 25 43 41
fernao.silveira@stellantis.com

Nathalie ROUSSEL
+33 6 87 77 41 82
nathalie.roussel@stellantis.com

SOURCE: Stellantis NV