Stellantis, the Multi-Brand Auto Group, Reported a Decline in Revenues for the First Quarter, Impacted by Preparations for Production of New Models and a Sales Decline in North America. With brands like Jeep and Dodge, the company reported a 12% decrease in revenue to 41.7 billion euros compared to the previous year. This fell short of analyst expectations, which had forecast revenues of 44.35 billion euros.
In North America, Stellantis' largest market, revenues fell by 15%, influenced by model changes in the Ram 1500 and Dodge Charger, which was partially offset by sales of the Jeep Wagoneer. Total deliveries in this region dropped by 20%.
In Europe, the Company's Second Largest Market, Shipments Declined by 6% as the Company Reduced Its Inventory to Prepare for New Models, Leading to a 15% Decrease in Revenue in the Region.
The corporation, which is realigning its production platforms including electric vehicles, launched four of the planned 25 model updates and introductions in the first quarter. This is expected to lead to a stronger second half of the year, Stellantis explained.
"We are reducing inventory levels to strengthen our strong relative price position before the upcoming product launches this year in key regions," said Chief Financial Officer Natalie Knight.
Despite challenging quarterly figures, Stellantis reaffirmed its annual forecast. Overall, consolidated deliveries fell by 10% to 1.3 million vehicles, although sales of electric vehicles increased by 8%.
