Stellantis reports sharp fall in revenue as it shifts portfolio

Attendees at the 2023 New York International Auto Show were able to see vehicles at the Jeep booth on opening day. Global automaker Stellantis reported a 12% decline in revenue in the first quarter, citing lower sales and foreign exchange effects. Despite this, net pricing remained steady. Shares of Stellantis fell by 6.9% in London. Chief Financial Officer Natalie Knight mentioned that the year-over-year comparisons were challenging due to the company’s shift to a new product portfolio. Stellantis plans to launch 25 new models this year, including 18 electric vehicles. The company introduced four new models in the first quarter, setting the stage for improved growth and profitability in the second half of the year. Shipments decreased by 10% in the first quarter to prepare for new products coming in the second half. Stellantis is working towards its commitment to electric vehicles, aiming for 100% of sales in Europe and 50% in the U.S. to be electric by the end of the decade. Analysts noted that Stellantis fell short of market volume expectations but remains optimistic about improved growth and profitability in the second half of the year.

Global automaker Stellantis reported a 12% decline in revenue in the first quarter of 2023, citing lower sales and foreign exchange effects. Despite this, net pricing remained steady. Share prices of Stellantis dropped 6.9% in London. The company plans to launch 25 new models this year, with 18 of them being battery-electric vehicles. The company debuted four models in the first quarter, setting the stage for growth and profitability in the second half of the year. Consolidated shipments fell by 10% in the quarter, reflecting production and inventory management for upcoming new products. Stellantis aims for electric vehicles to account for 100% of sales in Europe and 50% in the U.S. by the end of the decade. Analysts noted that the production decline was a strategic choice to manage inventory and ensure prices ahead of new product launches. Despite a challenging quarter, Stellantis remains optimistic for improved growth and profitability in the second half of the year. The company reaffirmed its double-digit Adjusted Operating Income margin and positive industrial free cash flow for the full year.

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