by Gilles Guillaume and Giulio Piovaccari

PARIS/MILAN (Reuters) – Stellantis reported on Tuesday a 12% drop in its first-quarter net sales to 41.7 billion euros, a decline in volumes attributable to destocking ahead of arrival new vehicles and unfavorable currency effects being partly offset by price increases.

The automobile manufacturer born from the merger in 2021 of PSA and FCA saw its deliveries during the quarter drop by 10% to 1,335,000 vehicles. Its turnover is lower than analysts’ expectations, which gave 42.6 billion euros according to a Reuters consensus.

“While year-over-year comparisons for shipments and net revenue in Q1 2024 were challenging due to transitions in our portfolio of next-generation products built on new platforms, we are seeing clear improvements in our business momentum. principal,” financial director Natalie Knight was quoted as saying in a press release.

Stellantis shares opened down 1.3% on the Milan Stock Exchange.

“The weaker than expected performance came mainly from Europe, where volumes and price mix were both lower than expected, while net prices held up better in other regions,” comments Philippe Houchois, of Jefferies, in a note.

E-C3, E-3008, DODGE CHARGER AND RAM REV IN REINFORCEMENT

Stellantis, which confirmed its objectives of a minimum double-digit current operating margin for 2024 as well as positive industrial free cash flow “despite macroeconomic uncertainties”, also said it expected a clear improvement in its growth in the second semester.

“Every major month of the year, there will be a product coming out of us,” added Natalie Knight during a press conference call.

Stellantis plans to launch no fewer than 25 new models – including 18 electric – in 2024, including potential best-sellers like the Citroën e-C3 and Peugeot e-3008 at the end of the second quarter, the Jeep Wagoneer S and Dodge Charger at third and the Ram Rev in fourth. Only four new products out of 25 have been launched to date.

A Stellantis spokesperson also indicated that the three European factories whose production has been stopped for around a week due to a strike at a supplier would restart on Thursday for the Poissy site (Yvelines) and next Tuesday for the factories in Hordain (North) and Luton (Great Britain).

“We have our own sourcing, we do stamping (…) so we do it internally and have our own system that allows us to supply these factories,” the spokesperson said.

He did not give any further details on the evolution of the social conflict on the MA France site in Aulnay-sous-Bois (Seine-Saint-Denis), located not far from the former assembly plant of PSA, closed in 2014.

(Report by Gilles Guillaume and Giulio Piovaccari, edited by Blandine Hénault and Nicolas Delame)

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