Stellantis chief warns of ‘turbulent’ year as Detroit Three strikes dent profits

The chief executive of Stellantis has said the carmaker will remain “rock solid” ahead of a “turbulent” year, as second half profits took a hit from strikes at the ‘Detroit Three’ automakers.

In a statement following the Dutch carmaker’s full-year results, Carlos Tavares said a record set of full-year profits and revenues proved “we have become a new global leader in our industry and will remain rock solid as we look to a turbulent 2024.”

But adjusted half-year operating income fell 10 per cent to €10.2bn (£8.72bn) between July and December. The adjusted operating income margin also dipped to 11.2 per cent, a fall from 12.3 per cent last year.

An unprecedented union strike against all three major Detroit automakers – Ford, Stellantis and General Motors – resulted in workers receiving record salary increases last year. Ford and GM both cut their profit forecasts as a result of the action.

The impact of the strikes coincided with a wider struggle in the European automotive industry. Increasing competition from Chinese carmakers, falling demand for electric vehicles (EVs) and ongoing supply chain issues have dented the bottom line of some of the biggest automakers.

“As we just passed the three-year mark since Stellantis’ inception, I warmly thank our teams who are executing at the highest levels and contributing greatly to our growth story, even in the strongest of headwinds,” Tavares said.

Despite the forward-looking concerns, Stellantis booked a historic net profit of €18.6bn, up 11 per cent year-on-year. Net revenues came in at €189.5bn, up 6 per cent compared to 2022.

The Amsterdam-based manufacturere is proposing a dividend of €1.55 per common share, an increase of 16 per cent. It also announced a new share buyback programme of €3bn.