Stellantis NV Jeep brand CEO Christian Meunier at the 2023 New York International Auto Show (NYIAS) in New York, United States, Wednesday, April 5, 2023.
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Global automaker Stellantis Tuesday report While net pricing remained strong, first-quarter revenue fell 12% due to lower sales and foreign exchange impacts.
Stellantis shares fell 2% at the open on Tuesday on the results.
Chief Financial Officer Natalie Knight said it was difficult to compare year-over-year shipments and net revenue as the company transitions to a “next-generation product portfolio built on new platforms.”
The Netherlands-based company, whose brands include Chrysler, Dodge, Jeep, Peugeot, Citroën and Maserati, plans to launch a total of 25 new models this year, including 18 battery electric vehicles (BEV).
The company launched four models in the first quarter, which Knight said set the stage for “substantial improvements in growth and profitability in the second half.”
Consolidated shipments fell 10% to 1.335 million units in the quarter, which the company said reflected production actions and inventory management to prepare for a “wave of new products” in the second half of the year.
Like many in the auto industry, Stellantis is working hard to achieve its ambitious goals promise The electric transition – which promises fully electric vehicles will account for 100% of its European sales and 50% of its U.S. sales by the end of the decade – faces supply chain challenges as well as issues with consumer demand and charging infrastructure readiness.
Quilter Cheviot analyst Mamta Valechha said in an emailed note on Tuesday that Stellantis sales fell about 4% compared with market expectations, setting the stage for a “calm tone for the quarter.”
However, Valechha added that the company’s production decline was relative to a rebound in production last year. Analysts noted that the drop in production was not only due to market pressure but also marked a “strategic choice” as automakers manage inventories to protect prices ahead of a series of new product launches.
“Looking ahead, Stellantis remains optimistic and expects ‘growth and profitability to improve materially in the second half of the year.’ Despite prevailing macroeconomic uncertainty, the company reiterated double-digit adjusted operating margin and positive industrial margins for the full year.” Free cash flow supports this forward-looking statement.
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