Stellantis, after disappointing accounts Tavares does not rule out the sale of one or more brands

Turning back to the financial results for the first half of 2024, they were driven, the manufacturer's note states, "primarily by a reduction in volume and mix, with difficult volume comparisons due to a combination of inventory reduction initiatives, temporary gaps in product production due to a generational portfolio transition and lower market share, particularly in North America. With the firm intention of successfully launching a wave of significant new products in the near term, the company expects the impact of gaps in product portfolio coverage to be at its peak, while management actions to improve performance in North America, Wider Europe and Maserati create significant performance improvement opportunities for the second half of 2024 and the full year 2025."

The operating margin fell to 10% (-440 bps) and in Europe it is 6.9%. Stellantis slightly changed its forecast for 2024. The company spoke of a 'neutral revenue environment', whereas previously it had been referred to as 'favourable', and emphasised its commitment to a double-digit adjusted operating income (Aoi) margin in 2024 (previously it was a minimum commitment on a double-digit adjusted operating margin). Expectations for industrial net cash flow are confirmed as 'positive', despite macroeconomic uncertainties.

Stellantis weak performance puts the company in uncharted territory, Bernstein analysts wrote in a note, after the maker of Jeep, Dodge and a dozen other brands missed revenue and adjusted operating profit forecasts. North American margins were worse than expected, calling into question the company's reputation for cost efficiency, analysts said. Cash outflow of EUR 392 million was much worse than expected, 122 per cent less than expected, according to Bernstein.

"Despite the below-expectation figure, Stellantis maintained its guidance of double-digit Aoi margins and positive industrial free cash flow," the analysts added. In addition, the group achieved an adjusted operating margin of 10 per cent, its key profitability metric, for the six-month period, the Bernstein team further noted.

Finally, capping off a field day, Stellantis and One Equity Partners (Oep), an international investment fund, announced that the fund has signed a binding agreement to make a majority investment in Comau , a global technology company specialising in industrial automation and advanced robotics. The transaction is part of the strategic agreement made during the merger between the former Fca and Groupe Psa in January 2021 from which Stellantis was born. The financial terms of the private deal were not disclosed. "Over the past 50 years, Comau has become a leader in the field of automation solutions," said Carlos Tavares. "This transaction is intended to help Comau achieve its autonomy and further strengthen its success to the benefit of all its stakeholders, in particular its employees and customers. It also gives Stellantis the opportunity to focus on its core business activities in Europe'. The transaction is expected to close by the end of 2024 and is subject to regulatory approvals in addition to customary closing conditions.

The trade unions were very critical. "We have always maintained that the only spin-off acceptable to us was on the Ferrari model, where the majority shareholding in the Stellantis company was maintained, as a guarantee of our country's industrial heritage". Thus the Fim-Cisl national secretary, Ferdinando Uliano. 'We will insist with the government to activate the golden power in order to obtain all the industrial and employment guarantees of this important company and to guarantee the industrial heritage of our country'.

And in the late afternoon, the Ministry of Enterprise and Made in Italy (Mimit) announced that assessments were being carried out regarding the applicability of the golden power discipline to the sale of a majority stake in Comau by Stellantis.