Stellantis Q1 Revenue Declines by 12%; North American Shipments Decrease by 20% During Transition to New Models

Stellantis Reports 12% Decrease in Q1 Revenue; North American Shipments Dip by 20% Amid Transition to New Model Lineup. Explore the impact of this transition on the automotive giant's financial performance and market dynamics in the first quarter of the year

Stellantis reported a 12 percent decline in revenue for the first quarter of the year due to lower volumes, an unfavorable product mix, and foreign exchange dynamics, which were partially offset by strong pricing power, according to the company's earnings statement. Consolidated shipments also dropped by 10 percent to 1.335 million vehicles.

Natalie Knight, the company's CFO, explained that the transition to Stellantis' new product portfolio, based on new platforms, has affected shipments and revenues. Stellantis is actively reducing inventories to strengthen pricing ahead of the launch of new or mid-cycle products in key regions later this year. Despite expectations, net revenue for the January to March period was €41.7 billion ($44.6 billion), falling short of analyst projections.

In North America, net revenues decreased by 15 percent compared to the previous year. Despite multiple plant shutdowns in preparation for the launch of new EV models, Stellantis' market share remained stable at 8.4 percent. The company shipped 102,000 fewer vehicles, representing a 20 percent reduction, primarily due to the ongoing transition to electric vehicles and the introduction of the refreshed 2025 Ram 1500.

Ram recently unveiled the 1500 RHO performance pickup and introduced the new Tungsten trim to the lineup, starting at $89,150 with shipping. The brand is shifting away from Hemi V-8 engines on the 1500, offering various powertrain options, including turbocharged 3-liter Hurricane inline-six engines and the Pentastar V-6 engine. Ram is also preparing to launch the electric 1500 REV later this year, followed by the gasoline-powered Ramcharger in 2025.

In Europe, key model transitions include new generations of the Peugeot 3008 and 5008, along with the Citroën C3 and Aircross, featuring low-cost electric vehicle options. However, below-consensus revenue in Europe was attributed to worse-than-expected volume, price, and product mix. Stellantis does not report full financial results in the first and third quarters of the year, in compliance with European regulations. 

Source: Autonews