Stellantis Has 'Significant Work To Do' in North America as Profits Plummet

CEO Carlos Tavares says a "perfect convergence" of issues is responsible for a nearly 50-percent drop in global profits.

By: Christopher Smith

Jul 25, 2024 at 12:00pm ET

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Stellantis isn't having the best year. The company announced financial results for the first half of 2024, and the numbers are way down. On a global scale, net profit is down a whopping 48 percent. Net revenues are down 14 percent. There's almost no free cash flow. And Stellantis CEO Carlos Tavares is prioritizing a fix for North American operations where inventory is high and marketing effectiveness is low.

"It is an understatement to say that H1 2024 results were disappointing and humbling," Tavares said Thursday on a conference call. "It represents a perfect convergence of several headwinds that I will describe for you in a very transitional period that opens the road for a product blitz of 20 new products."

Dodge

Tavares called out North American operations as one of those headwinds, specifically mentioning the marketing strategy which has not been effective. There's presently a 94-day supply of inventory for the region; dialing that down is his number-one priority for the near term. Considering how often we see Hemi-powered Chargers and Challengers on Dodge's official social media channels—vehicles the company no longer builds—we can understand his concern.

In the long run, Tavares made it clear that shutting down some brands within the Stellantis umbrella wasn't off the table, telling reporters the company can't afford brands that do not make money.

"We have significant work to do, especially in North America, to maximize our long-term potential," he said.

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That said, Tavares did point out that Stellantis is very much in a transitional period. In North America, the refreshed 2025 Ram 1500 with its new Hurricane I-6 engine is just now reaching dealerships. The new Dodge Charger will arrive as the electric Daytona later this year, followed by a Hurricane-powered combustion model. Offered as both a sedan and two-door coupe, it will also replace the dead Challenger. The Jeep Cherokee S is coming for 2025, and a completely new Jeep EV in the $25,000 range will arrive in 2026.

Curiously absent from the hour-long investor call was a mention of Chrysler. With the 300's demise, the long-running nameplate only has the Pacifica minivan. Previous plans for the Airflow have been canceled, and little has been heard about the brand after the Halcyon concept was revealed in February.