Stellantis reports a 1 per cent rise in revenue for the quarter, with losses reduced by 90 per cent to 500 million

Stellantis confirms its guidance on revenue and margins, alongside a return to positive cash flow from next year. Meanwhile, the third-quarter results show a net loss of 453 million euros (a significant improvement on the same period last year, when the group had embarked on a strategic reset that subsequently led to the major balance sheet write-downs in February this year) and a slight increase in revenue, by 1 per cent, to 37.6 billion. The adjusted operating margin, at 0.7 per cent, rose by a few percentage points year-on-year: the target, as confirmed, is to end the year in the ‘low single-digit’ range, whilst revenue is expected to grow by around 5 per cent.

EBIT rose to €256 million in the third quarter. CEO Antonio Filosa stated that the plan to achieve greater savings and improved execution in the product range renewal is in line with expectations. “Our programme,” he said, “has accelerated rapidly, with positive contributions recognised in the quarter, and we remain on track to implement at least 40 per cent of the total €6 billion in efficiencies at full scale by the end of this year.” The company stated that the savings arising from the reorganisation plan are accelerating and that it expects the programme to contribute between 500 and 600 million euros, up from around 300 million euros in the third quarter. Cash flow, however, remains negative at €4 billion, a figure worse than analysts had expected: the return to positive cash generation is, as mentioned, scheduled for next year.

The share price reacted positively on the stock market, in a year that has so far seen Stellantis lose 60 per cent of its value. The group managed to return to profit in the North American market (where sales were down by 3 per cent), thanks to the launch of new models such as the Jeep Cherokee hybrid and the Ram 1500 Hemi, and despite some planned production stoppages. There were also positive signs from South America. The situation is more complex in Europe, where the group’s range of mass-market brands, including Peugeot and Opel, is facing competition from Chinese manufacturers such as BYD, as well as from its usual rivals Volkswagen and Renault: in this region, Stellantis recorded an adjusted operating loss of €311 million.

The plan to revamp the model range, unveiled in recent weeks, involves investment of around 60 billion euros up to 2030 in dozens of new models, with priority given to the Jeep, Ram, Peugeot and Fiat brands (Meanwhile, the group has announced that it will present its new plan for Maserati on 10 December in Modena). The group is also banking on partnerships with the Chinese firms Leapmotor and Dongfeng to help utilise some of its underutilised plants in Europe.