Stellantis has communicated to the trade unions the next days of suspension of production activities planned for some Italian factories, those of Pomigliano d’Arco, Termoli and Pratola Serra, in November.
The days off in November
“These measures are necessary to adapt production to current market conditions and to ensure efficient management of resources” we read in a note. In detail a Pomigliano d’Arco (Panda line) the production of the line Panda will be suspended on the following individual days: 11, 14, 15, 18, 21, 22, 25, 28 and 29 November 2024; to Termoli on the Fire Line production will be suspended from 11 to 24 November 2024. While on the GME/GSE/V6 lines production will be suspended on the single days 11, 15, 18 and 22 November 2024; in the factory Pratola Serra production will be suspended on the single days of 11 and 12 November 2024.
“Stellantis is facing a particularly complex moment in the transition path due to the lack of orders linked to the trend of the electrified vehicle market in Europe, which is putting all producers in difficulty, especially European ones” we read in a note from Stellantis Italia. In which it is underlined: “We are determined to guarantee the continuity of our plants and activities in this complicated moment and we continue to support all our colleagues in this phase. It is a challenging path, which involves complex choices and does not offer immediate solutions, but requires unity of purpose and vision to accompany this great company, together with all its employees, into the future.”
Moody’s estimates
Moody’s confirms the Baa1 and (P)P-2 ratings for Stellantis NV but cuts the outlook from stable to negative. A choice, explains the agency, in the wake of “the severity of the cash burn expected in the second half of 2024 following management’s recent profit warning with the expectation that operating performance will rebound next year”.
And again: “Today’s rating action is further supported by Stellantis’ solid liquidity position which provides a cushion”, awaiting the improvement in 2025 in the trend of operating performance and free cash flow. (Moody’s confirms Baa1 and (P)P-2 ratings for Stellantis NV but cuts the outlook from stable to negative. A choice, explains the agency, in the wake of “the severity of the cash burn expected in the second half of 2024 following management’s recent profit warning with the expectation that operating performance will rebound next year”. And again: “Today’s rating action is further supported by solid liquidity position of Stellantis providing a buffer”, awaiting the improvement in 2025 in the trend of operational performance and free cash flow.
Deliveries decreasing compared to 2023
Stellantis estimates that consolidated deliveries in the quarter ended September 30 amounted to 1,148 thousand units, 20% less than the same period in 2023. The decline in deliveries was greater than that of sales to end customers in the period, which are reduced by approximately 15%, discounting the temporary impact of the transition of the product portfolio and of the inventory reduction initiatives in the network.
In detail, we read in a note from the group, in North America, deliveries decreased by approximately 170 thousand units, of which over 100 thousand units related to the previously announced production cuts with the aim of reducing stock in the network. The contraction of the product portfolio also had an impact due to the transition towards new multi-energy offers with a new generation of products being launched, starting in the latter part of 2024 with the Dodge Charger Daytona and the Jeep Wagoneer S. However, the U.S. end-customer sales supported third-quarter month-over-month market share growth from 7.2% in July to 7.9% in August and 8.0% in September as inventories tightened of 50 thousand units (-11.6%) compared to the end of the last quarter.
In enlarged Europe, the deliveries from factories decreased by approximately 100 thousand units compared to the same period last year, due to the postponement of the launch of models based on the Smart Car platform, including the Citroen C3 (which began to be delivered to the network in September). The prospects for the launch of the new models in Europe are robust with orders for 50 thousand units for the new Citroen C3 and 80 thousand units for the new one Peugeot 3008, as an example. In the “Third Engine” by Stellantis (which refers to the aggregation of the South America, Middle East & Africa and China & India & Asia Pacific segments, for presentation purposes only) deliveries remained unchanged overall, asgrowth in South America it offset declines in the Middle East & Africa, China & India and Asia Pacific.