More trouble for Stellantis: in addition to new production stops scheduled for November in the Italian factories, the group records a 20% drop in third-quarter deliveries 2024. To make matters worse, there is also the downgrade of Moody's, that lowers outlook from stable to negative, signaling a global slowdown and demand for electric vehicles that is struggling to take off.
The company "requires unity of purpose and vision in a challenging path." A message that, for workers and unions, does not represent good news at all, further fueling tensions in view of the strike on Friday 18 October.
Stop Italian factories: Panda also on hold
The Italian-French automotive giant has announced that, in order to adapt to current market conditions, its plants Pomigliano d'Arco, Termoli e Pratola Serra they will stop the production at November. The Pomigliano d'Arco plant, where the Fiat Panda, will see the line of its best-selling model stop for nine non-consecutive days, which include November 11, 14, 15, 18, 21, 22, 25, 28 and 29, 2024. In Termoli, too, the shutdown will be staggered: the Fire Line will be suspended for almost two weeks, from November 11 to 24, while the GME/GSE/V6 lines will stop for four days. Finally, in Pratola Serra, production will be blocked on November 11 and 12.
Global shipments down 20%, with North America in sharp decline
In the third quarter of 2024, Stellantis recorded consolidated deliveries of 1,148 million units, down 20% compared to the same period of the previous year. In North America, the deliveries are decreased by 36%, with a reduction of more than 170 thousand units, largely due to the reduction initiatives of the inventories and the transition to new multi-energy models. Despite this, the group has seen a growth of the market share in the United States, with an increase from 7,2% in July to 8% in September, while the inventories have been reduced by 50 thousand units.
In Europe, the Deliveries dropped 17% compared to 2023, mainly due to the delay in the launch of models based on the Smart Car platform, such as the new Citroen C3, which began deliveries only in September. Despite the decline, Stellantis has collected promising orders, with 50 units for the Citroen C3 and 80 for the new Peugeot 3008.
In Stellantis’ “Third Engine,” which includes South America, the Middle East, Africa, China, India and Asia Pacific, deliveries remained stable, with 14% growth in South America offsetting declines in other areas, such as China and India (-30%) and the Middle East and Africa (-26%).
Moody's is not going easy: outlook at negative
To further complicate the situation, Moody's Lowers Stellantis Outlook from stable to negative. The rating agency motivated the decision by citing a “serious loss of liquidity” expected for the second half of 2024, following the profit warning issued on September 30. Although Moody's maintained its “Baa1” long-term ratings and those on the senior unsecured instruments, it expressed concerns about the weakness in the European and North American markets. However, the rating agency long-term ratings affirmed of the group, highlighting that the liquidity position is still solid and could improve in 2025 with the recovery of operating performance.
An uncertain future, but with new models on the way
Despite the difficulties, Stellantis sees positive prospects for the future, with the launch of new models and a recovery expected in 2025. The group is focusing on the launch of new models, such as the Dodge Charger Daytona and the Jeep Wagoneer S in North America, to accelerate the transition to multi-energy technologies. In Europe, positive developments are expected from the launch of models such as the Citroën C3 and Peugeot 3008, which have already collected 50 and 80 orders respectively.
