The automotive industry is experiencing its first slowdown since 2020. The quarterly reports of Stellantis, Volkswagen and Mercedes-Benz give the measure of the uncertainties in which the sector is struggling, caught between the billion-dollar investment plans for the energy transition and the mass adoption of electric cars is still missing. All manufacturers have seen revenues reduced due to a drop in sales awaiting the launch of new models and the arrival of new incentives. Despite the reassurances regarding the respect of growth estimates for 2024, investors are punishing the stocks on the stock market: Stellantis loses 3.1%, Volkswagen 2.3% and Mercedes-Benz 4.2%.
Stellantis, stop in North America
Stellantis was the first company to publish its quarterly financial statements. Revenues of the group born from the merger between Fiat-Chrysler and Peugeot decreased by 12% to 41.7 billion compared to the January-March period of 2023. The decline is due on the one hand to lower volumes and on the other to the drop in price average sales, explains a note from Stellantis. Deliveries fell by 10% to just over 1.3 million units, with a marked decline in the United States (-20%), which has always been the driver of the manufacturer’s profits. «While the year-on-year comparison of deliveries and net revenues for the first quarter of 2024 is difficult due to the transition towards our new generation product portfolio based on the new platforms, we have achieved a clear improvement in commercial dynamics with sales to end customers higher than to deliveries to the network”, underlined the financial director Natale Knight. “We are reducing inventories to strengthen our already strong pricing in relative terms ahead of the launch of new or mid-cycle products this year in key regions.”
Volkswagen, profits down 21.6%
Volkswagen fared slightly better, closing the first quarter of 2024 with revenues of 75.5 billion euros, down 1%, but with a net profit down 21.6% to 3.7 billion. Car sales fell 2% to 2.08 million units. “We expect further momentum throughout the year from the launch of more than 30 new models across all brands,” said Arno Antlitz, CFO and COO of Volkswagen. «In this context – he adds -, it will be
particularly important to vigorously counteract the increase
of fixed costs and exercise discipline on investments”. Sales grew 2% in Asia-Pacific and 19% in South America
while they decreased by 10% in North America and 5% in Europe
and in the rest of the world.
Mercedes-Benz, they keep the vans
As for the other German giant, Mercedes Benz saw net profits contract by 25% to 3.02 billion euros, compared to a 4% drop in revenues to 35.87 billion. Overall car sales fell 8% to
462,978 units, while those of vans rose by 7% to 105,425 units.
«We remain vigilant regarding macroeconomic and geopolitical forecasts – remarked the financial manager of the management board Harald Wilhelm – and we confirm our estimates for the entire financial year».
