MILAN (Reuters) -Stellantis said on Tuesday its revenue fell 12% in the first quarter, but the Franco-Italian car maker was confident new models would support its growth and profitability in the second half of the year.
Net revenue fell to 41.7 billion euros ($44.6 billion)in the January-March period, short of analyst expectations of 42.6 billion euros, according to a Reuters poll.
Lower volumes, an unfavourable product mix and foreign exchange dynamics weighed on the result, although they were partially offset by a “firm” pricing power, Stellantis said in a statement.
Consolidated shipments were down 10% in the quarter to 1.335 million units.
Chief Financial Officer Natalie Knight said shipments and revenues were impacted by the transition to the group’s new product portfolio, based on new platforms.
“We are reducing inventories to reinforce our strong relative pricing ahead of our new or mid-cycle product launches this year in key regions,” she said.
Stellantis, whose brands include Peugeot, Fiat, Jeep and Alfa Romeo, has launched four new models since the beginning of 2024, out of a total of 25 planned for the full year, including 18 fully electric vehicles (EVs).
Among new launches Knight cited was the RAM 1500 truck, out now, and during the year Stellantis will release models including low-cost EV Citroen eC3, Peugeot E3008 EV SUV and Jeep’s Wagoneer S in the United States.
“Those are blockbuster products for us,” she said, adding that the group was confident that the new model roll-out plan “sets the stage for materially improved growth and profitability in the second half of the year”.
($1 = 0.9343 euros)
(Reporting by Giulio Piovaccari in Milan and Gilles Guillaume in Paris; writing by Giulio Piovaccari, editing by Giulia Segreti)
Brought to you by www.srnnews.com
