Stellantis reports 9% drop in Q1 shipments
Stellantis reports 9% decline in global shipments in Q1 2025
Stellantis, the world’s fourth-largest automaker, reported a 9% year-on-year decline in global shipments in the first quarter of 2025, with deliveries dropping to an estimated 1.2 million vehicles.
This follows a 12% decrease in shipments throughout 2024. The company explained that the decline in Q1 2025 was primarily due to lower North American production, driven by extended holiday downtime in January, product transitions, and a drop in van sales in Europe, reports Reuters.
Stellantis noted that shipments in North America were down by 20%, while its Enlarged Europe region experienced an 8% decrease in shipments. However, the company saw a 19% increase in deliveries in South America, indicating a positive performance in that region.
Challenges in North America and Europe
In North America, Stellantis' performance was notably impacted by the initial ramp-up of the updated 2025 Ram heavy-duty trucks. This early production phase contributed to the overall shipment decline in the region. Additionally, the automaker pointed to product transitions, which affected overall vehicle deliveries.
In Europe, Stellantis faced a significant drop in van sales, which has been a traditional strong segment for the company in the region. The shift in consumer preferences and ongoing product transitions contributed to the lower-than-expected performance in Europe.
Despite the overall decline in shipments, Stellantis highlighted the introduction of several new and refreshed models during the first quarter. These included the Citroen C3 Aircross, Opel Frontera, Fiat Grande Panda, and the Ram 2500 and 3500 heavy-duty trucks.
These new offerings helped to generate positive order intake and maintain normalized dealer inventory levels, as the company continues to adjust its product lineup in response to changing market conditions.
Financial Outlook and Leadership Changes
Stellantis’ 2024 results showed a 70% drop in net profit and a cash burn of 6 billion euros ($6.8 billion), prompting a cautious outlook for 2025. The company indicated that any improvement may not materialize until the latter part of the year. This follows a significant profit warning in September 2024 that led to a sharp decline in the company’s stock price and strained relations with investors.
Currently, Stellantis is led by Chairman John Elkann, as the company searches for a permanent CEO following the departure of Carlos Tavares in December 2024. Stellantis will hold its annual shareholder meeting next week and will report its first-quarter revenue on April 30.
Stellantis' Q1 2025 results reflect ongoing challenges, particularly in North America and Europe. The company faces significant hurdles in production and shifting consumer demands but remains optimistic about growth prospects in South America. The automaker's focus on new and refreshed models may help drive future sales, though a cautious outlook remains as it navigates market uncertainties.
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