A major car manufacturer responsible for brands like Dodge, Chrysler, Ram, Maserati, and Jeep has posted a staggering profit loss in its summary for 2024.
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Stellantis is the corporate giant behind the aforementioned well-known vehicle brands, including others like Peugeot and Vauxhall. It's also the third largest car maker in the US. The company posted its 'Full Year 2024 Results,' which contain some shocking revelations. Most notably, Stellantis posted a Net Profit of roughly $5.72 billion, which is still a staggering number but a 70% drop compared to 2023. For comparison, the company made approximately $20.35 billion in 2023, per the Daily Mail.
The news outlet cites many potential reasons for the drop in revenue. The company also lost its former CEO, Carlos Tavares, in December 2024, a still-open position. Chairman John Elkann is filling the role for the time being. According to the Daily Mail, Stellantis is struggling to sell its cars promptly. The Dodge Hornet, in particular, was sitting in car showroom lots for over a year on average. High prices may be another contributing factor, with the base model of vehicles like the Jeep Wagoneer costing $59,000.
The Drop In Profits May Also Be Due To Gaps In The Company's Inventory
The Daily Mail also points out that the Dodge Challenger was discontinued in 2023, leaving a gaping hole in the carmaker's inventory. It was the smallest car in the portfolio, with nothing to replace it. Per a report by Reuters, stock values took a nosedive after they hit a peak in April last year. Stocks flatlined around October, with little improvement heading into 2025. Tavares left the company during that low period.
Addressing the poor performance, Elkann said, "While 2024 was a year of stark contrasts for the Company, with results falling short of our potential, we achieved important strategic milestones. Notably, we began the rollout of new multi-energy platforms and products, which continues in 2025, started production of EV batteries through our JVs, and launched the Leapmotor International partnership." He adds, "We are firmly focused on gaining market share and improving financial performance as 2025 progresses."
