Stellantis's share price experienced a significant drop of nearly 9% on the Milan stock exchange following the release of disappointing half-yearly results. The Italian-American-French auto group reported a staggering 48% decline in both revenue and net profit, with figures falling to 85 billion euros and 5.6 billion euros, respectively. This downturn is attributed to a 6% decrease in sales in Europe and an 18% drop in North America, alongside production shortages and recalls of defective airbags on certain models.
General manager Carlos Tavares acknowledged that the results did not meet expectations, citing a challenging industrial context and operational difficulties. He emphasized that corrective measures have been implemented to address these issues, particularly in North America, where the company aims to unlock its long-term potential. Despite the grim current outlook, Stellantis remains optimistic about 2024, forecasting it as a transitional year leading to a strong rebound with 20 new models expected to launch.
In contrast, the Renault group reported record profitability in the same period, achieving a turnover of 27 billion euros, although its net profit fell by 38.22% to 1.3 billion euros due to a capital loss linked to Nissan shares. Renault's strategy of selling higher-priced vehicles has bolstered its margins, and with new electric models on the horizon, it aims to continue its upward trajectory in the second half of the year.
