Stellantis NV said Wednesday its 2024 net profit fell sharply to $5.8 billion (5.5 billion euro), a 70% drop compared to 2023's record high.

The results reflect a tumultuous year for the maker of Chrysler, Dodge, Jeep and Ram and other brands that included poor sales across several key regions, cost cuts including layoffs, fights with unions and dealers, and the sudden departure of CEO Carlos Tavares in December.

Last year marked by far the lowest total profits that Stellantis has posted since the 2021 merger between Fiat Chrysler Automobiles NV and French automaker Groupe PSA that created the current company, now the third-largest global carmaker in terms of total units.

And although there are indicators of a turnaround, Stellantis executives in an investor call acknowledged 2025 would not be a return to the double-digit profit margins of the prior few years, and significant performance improvements would not occur until the year's second half.

John Elkann, Stellantis' board chair, told investors Wednesday that 2024 was "a year we are not proud of," a sentiment that was quickly echoed by Chief Financial Officer Doug Ostermann, who said it had been "a very rough year."

The transatlantic company's adjusted operating income fell 64% to $9 billion (8.6 billion euro), and its margin fell to 5.5% after being in the double digits and among the best in the industry over the prior three years.

Stellantis had told investors in September to expect significantly lower profit margins amid its rocky year — a warning that had caught some off guard, and quickly led to a leadership shakeup before Tavares' eventual exit. The 5.5% figure aligned with the low end of that updated profit forecast.

Net revenues for 2024 decreased by 17%, to $164.7 billion (156.9 billion euro). And the company's industrial free cash flows notably plummeted 147% to negative $6.3 billion (6 billion euro) — revealing significant cash burn that investors were also notified about last fall.

Stellantis shares were down close to 4% early Wednesday.

Yet there were at least some signs of a rebound late in the year. A major problem for the automaker in 2024, especially in the United States, had been bloated dealer inventory including older models that had prevented retailers from ordering more new product from the factory.

But Stellantis said by the end of December it had reduced those inventories year-over-year by 18% worldwide, and by 20% in the United States. U.S. dealer stock stood at 304,000 vehicles, below the company's reduction target of 330,000 vehicles. And the automaker has also begun launching key new vehicles on its new flexible platforms, known as STLA Medium, STLA Large and Smart Car.

The automaker in its earnings statement provided 2025 guidance of positive net revenue growth, a return to positive cash flow, and adjusted profit margins in the "mid-single digits."

"The future is brighter from where we were in 2024," Elkann told investors, though he and Ostermann repeatedly acknowledged it would be a slower recovery process, and not to expect large correction in profits or market share this year.

In the carmaker's profit-rich U.S. market, vehicle sales fell 15% overall in 2024, and 7% for the fourth quarter. But the automaker cut prices and offered deep incentives in the final weeks of the year, which helped pick up the sales pace and clear the glut of older cars off dealer lots.

Stellantis executives are optimistic that, beyond price reductions, several new vehicle offerings in 2025 can help lift sales. In the U.S., those new offerings will include a replacement SUV for the discontinued Jeep Cherokee, filling a key hole in that brand's lineup; a gas version of the Dodge Charger muscle car; as well as refreshed and all-new Ram pickups that executives are optimistic will be popular with consumers.

But the rollouts and sales success of those vehicles and others could be complicated by sweeping tariffs promised by President Donald Trump and other potential changes to support for electric vehicles. Stellantis has multiple factories in both Canada and Mexico, countries that could face steep new tariffs under Trump as early as next week.

And as it navigates the policy uncertainty, Stellantis is still searching for its next CEO after Tavares left late last year. It formed a special committee to lead the effort led by Elkann. The company said Wednesday the search is "well underway" and pledged to have a replacement in place sometime in the first half of this year.

The carmaker proposed a dividend to shareholders of 71 cents (.68 euro) per share pending their approval.

Stellantis was the last of the Detroit Three automakers to report earnings. General Motors Co. in January posted net 2024 income of $6 billion, well down from 2023 thanks to costly changes to its China and robotaxi operations. And Ford Motor Co. earlier this month said its net income was up substantially last year, to $5.9 billion, beating expectations.

©2025 www.detroitnews.com. Visit at detroitnews.com. Distributed by Tribune Content Agency, LLC.