Stellantis president: "We'll launch the right models, with the right engines, at the right time".

While the year 2024 has not been the easiest for Stellantis, its Chairman, John Elkann, took the floor to give an update on the company's situation. After record figures for 2023, Stellantis had a difficult year, marked by a series of external and internal challenges.

The global automotive market faced tougher-than-expected conditions in 2024. Demand declined in Stellantis' main markets, notably the United States and Europe, with factors such as regulatory uncertainty, greater consumer price sensitivity and reduced government incentives for electric vehicles. According to John Elkann, some of these challenges will continue into 2025.

At the same time, competition has intensified, notably with the massive arrival of Chinese automakers, who have invaded the European market and other regions, such as Brazil and Mexico, with very competitively priced electric vehicles. In 2024, Chinese exports of electric vehicles reached 1.3 million units, an increase of 24 % on the previous year.

Faced with this situation, Stellantis reacted by seeing the competition as an opportunity. In 2024, the company invested in Leapmotor, a Chinese manufacturer of electric vehicles, through a joint venture called Leapmotor International. This initiative paid off, as Leapmotor achieved impressive revenues of over 4 billion euros, an increase of 90 % on the previous year, and reached profitability as early as the fourth quarter.

But beyond external challenges, Stellantis also had to deal with internal problems. The transition to new platforms for electric, hybrid and internal combustion vehicles created gaps in production, limiting the supply of models on the market. In addition, poor sales and marketing performance in North America exacerbated the situation, swelling inventory levels and forcing the company to discount aggressively to liquidate the surplus.

This pressure eventually led to thehe resignation of Carlos Tavares in December 2024after a growing gap with the Board of Directors.

With the arrival of John Elkann at the head of the interim executive committee, Stellantis has embarked on a reorganization process to turn things around. The Chairman announced that the company would be focusing on product launches and adapting models to consumer expectations.

We focused on product launches, adjusting plans to ensure that the right models, with the right powertrains, arrive at the right time. [...] we're reintroducing classic American models, including a Jeep Cherokee-sized SUV and the gas-powered Dodge Charger, and we're suspending the launch of the all-electric Ram truck to better align our offering with current market demands in North America.

For Elkann, the objective is to strengthen stakeholder confidence and empower regional teams, that are as close as possible to consumer expectations. In a difficult context, he makes a point of reaffirming that quality is at the heart of Stellantis' strategy, an axis that will guide all future initiatives.

The process of selecting a new CEO is also well underway, with the aim of concluding it by the first half of 2025. According to Elkann: "We want to find a leader who is in tune with the reference shareholders and the rest of the Board of Directors".