- Global automakerĀ Stellantis on Tuesday reported a 12% decline in revenue in the first quarter, citing lower sales and foreign exchange effects, even as net pricing held firm.
- The Netherlands-based company, whose brands include Chrysler, Dodge, Jeep, Peugeot, Citroƫn and Maserati, plans to launch a total of 25 new models this year, including 18 battery-electric vehicles.
- Like many in the auto industry, Stellantis is juggling its ambitious commitment to the electric transition with supply chain challenges and questions over consumer demand and the readiness of charging infrastructure.
Global automakerĀ Stellantis on Tuesday reported a 12% decline in revenue in the first quarter, citing lower sales and foreign exchange effects, even as net pricing held firm.
Shares of Stellantis were down 10% by the market close in Europe.
Chief Financial Officer Natalie Knight said year-over-year shipment and net revenue comparisons were difficult due to the company's transition to a "next generation product portfolio manufactured on new platforms."
The Netherlands-based company, whose brands include Chrysler, Dodge, Jeep, Peugeot, Citroƫn and Maserati, plans to launch a total of 25 new models this year, including 18 battery-electric vehicles.
The company debuted four models in the first quarter, with Knight saying this had set "the stage for materially improved growth and profitability in the second half of the year."
Consolidated shipments fell by 10% to 1.335 million units in the quarter, which the company said reflected production actions and inventory management to prepare for the "new product wave" in the second half.
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Like many in the auto industry, Stellantis is juggling its ambitious commitment to the electric transition ā pledging that BEVs will account for 100% of its sales in Europe and 50% of those in the U.S. by the end of the decade ā with supply chain challenges and questions over consumer demand and the readiness of charging infrastructure.
Mamta Valechha, analyst at Quilter Cheviot, said in an emailed note out Tuesday that Stellantis' shortfall of around 4% against market expectations for volumes set a "sobering tone for the quarter."
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However, Valechha added that the company's production declineĀ came in relative to an output rebound last year. The production fall wasĀ also not just due to market pressures, butĀ markedĀ a "strategic choice," asĀ the carmakerĀ manages inventory in order to safeguard prices ahead of its slate of new product launches,Ā the analyst flagged.
"Looking ahead, Stellantis remains optimistic, projecting a 'materially improved growth and profitability in the second half of the year.' This forward-looking statement is bolstered by the company's reaffirmation of a double-digit Adjusted Operating Income margin and a positive industrial free cash flow for the full year, despite the prevailing macroeconomic uncertainties," Valechha said.
