Jeep and Dodge producer Stellantis reviews 48 p.c drop in earnings within the first half of the 12 months

New Jeep vehicles are displayed on the lot of a Dodge Chrysler-Jeep Ram dealership in Miami, Florida on October 3, 2023.

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Auto giant Stellantis reported a sharp decline in first-half net profit on Thursday, citing lower sales, temporary production gaps and a smaller market share in North America.

The company, which owns well-known brands such as Jeep, Dodge, Fiat, Chrysler and Peugeot, reported net profit of 5.6 billion euros (6.07 billion dollars) for the first half of the year, down 48% from the same period in 2023.

Stellantis' adjusted operating profit for the first six months of 2024 was €8.5 billion, down €5.7 billion from the previous year, mainly due to declines in North America.

Stellantis shares, listed on the Milan Stock Exchange, fell by around 8.8 percent on Thursday morning.

“The company's performance in the first half of 2024 fell short of our expectations, reflecting both a challenging industry context and our own operational issues,” Stellantis CEO Carlos Tavares said in a statement.

“While corrective actions were required and are currently being taken to address these issues, we have also embarked on an exciting product offensive that will see us launch no less than 20 new vehicles this year. If we execute this well, it will create greater opportunities,” he added, noting, “We still have a lot of work to do, particularly in North America, to maximize our long-term potential.”

Stellantis' results follow closely on the heels of second-quarter results from U.S. automakers General Motors and Ford Motor.

GM raised several key financial targets on Tuesday after the company comfortably beat Wall Street's earnings expectations, while Ford reported a decline in adjusted profit on Wednesday, disappointing investors.

Stellantis, for its part, recorded net sales of 85 billion euros in the first half of the year, a decrease of 14% compared to the same period last year.

Of the 20 product launches planned for 2024, ten have already started production in the first six months of the year, Stellantis said.