Stellantis reports huge £10bn drop in sales as European collapse continues – Car Dealer Magazine

Stellantis reported a significant fall in revenue following a slump in new car sales in Europe, although the manufacturer says supply chain problems are also part of the problem.

The company, which owns Peugeot, Fiat, Vauxhall/Opel, Chrysler and Alfa Romeo, reported revenue of €33bn (£27.6bn) in the July to September quarter, up 27% or €12bn (10 billion pounds sterling) compared to the same period. period in 2023.

The company sold 20% fewer cars, which was partly blamed on delayed production of some models in Europe caused by supply chain delays and factories switching from producing petrol and diesel cars to electric and hybrids.

The announcement comes amid similarly gloomy forecasts. Volkswagen earlier this weekwhile BMW and Mercedes-Benz also reported falling sales.

However, despite the bad news, Stellantis shares rose 2.6% to €12.55 on Thursday. Analysts said the figures were “expectedly bad, but not worse” for a company whose share price has more than halved since its March peak of above 27 euros.

Doug Ostermann, Stellantis’ chief financial officer, said third-quarter results were “results below our potential” and blamed a backlog of unsold vehicles in the U.S. and supply chain issues in Europe that delayed the launch of new or updated high-volume models such as the newest Citroen C3.

However, Stellantis is ahead of most European manufacturers when it comes to electrification, and at the Paris Motor Show last month it became the first European manufacturer to partner with Chinese brand Leapmotor in an “if you can’t beat it” competition. they-join-they-move.

But the company has also opposed European regulations such as ZEV requirements that force automakers to sell more electric vehicles, including threats of plant closures. Chief executive Carlos Tavares said this month that the future of the company’s UK plants would be decided “in the next few weeks”.