Stellantis shares are falling after the Jeep maker logged a 70% profit plunge in 2024
The parent company of Jeep, Dodge, and Ram reported earnings Wednesday.
Just because it builds some vehicles to go off-road doesn’t mean Stellantis enjoys a bumpy ride.
The fourth-largest global carmaker reported earnings Wednesday, and its full-year 2024 profit came in at $5.8 billion, down 70% from the year prior.
Net revenues fell 17% on the year to $164.5 billion. The Jeep, Dodge, and Ram parent was down more than 4% in premarket trading.
Stellantis’ consolidated shipments fell 9% year over year on the quarter, with a 28% drop in North America. The automaker has made efforts to shrink its bloated US inventories, and said it’s successfully decreased dealer stock by 20% from last year in the country.
Last month, Stellantis said its US sales fell 15% last year, dragged down primarily by Dodge (down 29%), and Ram (down 19%). US Jeep sales were down 9% on the year.
Following a monthslong public spat with its US dealer network over bloating inventories and poor sales, Stellantis ousted CEO Carlos Tavares in December.
The company expects lackluster profitability in 2025 and issued a mid-single-digit growth outlook for its operating income margin.
Stellantis still hasn’t named its next CEO — it says that’ll happen in the first half of this year — but it has been slashing its prices. Its average new vehicle transaction price has fallen by about $6,000 over the past year. Per data from Cox Automotive, new Jeep prices fell to about $49,000 in January, down 9% from a year earlier and the brand’s lowest level in three years.
Since the departure of Tavares, Stellantis has “recommitted” to US factory investments and moved the launch of a hybrid Ram pickup ahead of a full-electric version.
This year has the potential to get weird fast for Stellantis and rivals Ford and GM. Increased EV competition in China is still hurting bottom lines, and tariff-related obstacles could send car prices even higher. If President Trump’s planned 25% tariffs do ultimately get tagged onto vehicles, some analysts believe the average price of a car could rise by $3,000.
