AMSTERDAM (HOLLAND) (ITALPRESS) – Stellantis has revised its 2024 results guidance to reflect decisions to significantly expand stock in the face of performance issues in North America as well as deterioration in global industry dynamics. The Group has accelerated its plan to normalize stock levels in the United States with a target of no more than 330,000 units in stock at the network by the end of 2024 compared to the previous first quarter 2025 deadline. Actions include a reduction in deliveries to the network of more than 200,000 vehicles in the second half of 2024 (an increase from the 100,000 reduction reflected in previous guidance) compared to the same period last year, increased incentives on 2024 and earlier model years, and productivity enhancement initiatives that contemplate adjustments on both cost and capacity. The deterioration in overall industry conditions results in a market forecast for 2024 at a lower level than at the beginning of the year while competitive dynamics have intensified as a result of both increased supply and increased Chinese competition.
This updated guidance and market expectation for 2024 are. Adjusted Operating Income Margin – Expected between 5.5 percent and 7.0 percent for the full year 2024, down from the previous “double digit”. About two-thirds of the reduction in the Expected Adjusted Operating Income Margin is related to corrective actions in North America; other factors include lower than expected sales in the second half of the year in several Regions. Industrial Free Cash Flow – Expected to be in the range of -€5 billion to -€10 billion from the previous “Positive”. This mainly reflects the lower Adjusted Operating Income expected as well as the impact of temporarily higher working capital in the second half of 2024. The Group will continue to leverage and expand its competitive differentiators and is confident that the recovery actions put in place will result in more robust operating and financial performance in 2025 and beyond.
photo: stellantis press office
(ITALPRESS).
