Several sub brands under Stellantis Group have been rumored to be selling to Chinese car companies. Recently, there have been reports that several luxury car brands under Stellantis, including Chrysler, Alfa Romeo, Maserati, etc., are interested in selling. Stellantis Group has not responded directly to this news, while BYD has denied acquiring Chrysler.
The reporter's inquiry into Stellantis Group's financial report found that the rumored acquisition of Chrysler may be related to its declining sales in recent years, as well as Stellantis Group's strategic adjustments. On the one hand, the United States has always been Chrysler's main market, with its main products including Jeep models and Ram pickup truck models. With the impact of new energy vehicles on the global automotive market, Chrysler's sales in the United States have declined in the past three years. From 2022 to 2023, Chrysler ranked fourth and fifth in sales in the United States.
On the other hand, Stellantis Group's net revenue for the first half of 2024 was 85.017 billion euros, a year-on-year decrease of 14%; Net profit of 5.647 billion euros, a year-on-year decrease of 48%; Adjusted operating profit of 8.463 billion euros, with an adjusted operating profit margin of 10%.
Overall, the most significant decline in profit margin for Stellantis Group in the first half of the year was in North America, which is the main source of sales for its subsidiary Chrysler. Specifically, in the first half of 2024, Stellantis Group's operating profit (8.463 billion euros) accounted for over 50% in North America, but the market share in North America has declined, resulting in an overall decline in the company's sales.
Stellantis Group CEO Carlos Tavares stated in a statement that the group is taking measures to address low profit margins and high inventory in its US business, and will not hesitate to reduce underperforming brands in its large product portfolio.
At the same time, multiple sub brands under Stellantis Group have encountered bottlenecks in their development in China. In 2019, Changan Automobile withdrew from its joint venture with PSA, Changan Peugeot Citroen Automobile Co., Ltd; In 2022, the joint venture between GAC Group and Stellantis Group, GAC FCA, announced bankruptcy and entered into liquidation proceedings. The reasons given by the above-mentioned Chinese car companies for closing joint venture car companies are that the joint venture car companies are in a long-term loss making state.
After closing two joint venture car companies in China, the sales of Shenlong Automobile, a joint venture between PSA and Dongfeng Motor Corporation under Stellantis Group, have declined. From 2016 to 2020, the sales of Dongfeng Peugeot Citroen Automobile were 600200, 378000, 253400, 117000, and 50300 respectively, with a continuous decline in sales for five years. From 2021 to 2022, the sales of Dongfeng Motor Corporation have rebounded. In 2023, the sales of Dongfeng Motor Corporation will decline again, with only about 80300 units sold, a year-on-year decrease of 35.81%.
Currently, Stellantis Group is implementing a light asset business model for its brands in China. In the first half of 2024, the combined shipment volume of Stellantis Group's joint ventures in China, India, and the Asia Pacific region was 32000 units, a decrease of 90000 units from the same period last year, a year-on-year decrease of 35.56%; The shipment volume excluding joint ventures was 32000 units, a year-on-year decrease of 44.83%. Based on this, Stellantis Group's net revenue in China, India, and the Asia Pacific region reached 1.072 billion euros in the first half of this year, a decrease of 914 million euros or 46.02% compared to the same period last year.
The adjustment of Stellantis Group is currently underway. In terms of new energy business, the company has established a joint venture company "Zero Run International" with Zero Run Motors, and the new car has now entered the European market. At the same time, Stellantis Group has made personnel adjustments in its enterprises in China. On the one hand, Song Hanming "took over" Chen Bin and concurrently served as the general manager of Dongfeng Motor Corporation, continuing to expand its export strategy. On the other hand, on August 14th, Stellantis Group released a personnel change announcement, appointing Pan Liyin as the General Manager of Stellantis (Shanghai) Automotive Co., Ltd. and the Acting General Manager of Alfa Romeo China, and Zeng Dihao as the Deputy General Manager of Stellantis (Shanghai) Automotive Co., Ltd. and the General Manager of Jeep China.