As dusk envelops Amsterdam, the lights in Stellantis' headquarters gradually fade.

Once a global automotive juggernaut heralded as a 'profit marvel,' it now finds its veneer stripped away by a stark financial report. Net profit has plummeted by 70%, and market value has dwindled by over 50%. As the world's fourth-largest automaker, Stellantis is enduring its chilliest winter since its inception.

Amid the surge towards electrification and intelligence, Stellantis resembles a colossal ship adrift, not only seeing its profit margins shattered by colossal waves but also revealing the fractures of the era beneath its multi-brand strategy.

1. The World's Fourth-Largest Automaker

In 2021, Italy's FCA Group (Fiat Chrysler Automobiles) merged with France's PSA Group (Peugeot Citroen Automobiles) to form a new global automotive giant, Stellantis, headquartered in Amsterdam, Netherlands.

Stellantis boasts an impressive portfolio of 15 automotive brands:

From the affordable Fiat, Peugeot, and Citroen to the luxurious Maserati and Alfa Romeo, to the rugged symbols of Jeep and Dodge, along with Opel, Vauxhall, Abarth, Ram, Chrysler, Lancia, and DS Automobiles.

From passenger cars to commercial vehicles, from sedans to SUVs and pickup trucks, from family cars to luxury and even super-luxury models, Stellantis swiftly rose to become the world's fourth-largest automaker shortly after its formation, trailing only Toyota, Volkswagen, and Hyundai in sales.

In 2024, its global sales reached 5.42 million units, solidifying its position as the fourth-largest automaker globally, outpacing BYD, which ranked fifth, by over 1 million units.

This 'automotive United Nations' once towered over its peers with the expansiveness of its brand portfolio, akin to a colossal 'joint fleet.' However, this 'joint fleet' now finds itself tossed by the tumultuous waves of the times.

2. Net Profit Slumps 70%

In 2023, under the firm leadership of then-CEO Carlos Tavares, Stellantis boasted an operating profit margin of 12.8%, achieving a record-high net profit of 18.6 billion euros.

However, its 2024 financial report data served as a harsh reality check, piercing through the tranquility of the capital markets and sending shockwaves through the entire automotive industry.

In 2024, Stellantis' performance metrics crumbled across the board: net revenue amounted to 156.9 billion euros, a year-on-year decline of 17%; operating cash flow plummeted to 4 billion euros, a steep year-on-year drop of 82%;

Adjusted operating profit margin nose-dived from 12.8% to 5.5%; net profit stood at 5.5 billion euros, a year-on-year crash of 70%...

The financial report figures are chilling, with revenues nose-diving, cash flows collapsing, and net profits halved, making it difficult to fathom that this is the report card submitted by the formidable Stellantis.

Stellantis resembles an out-of-control engine, mired in the quagmire of financial data. The response from the capital market was equally brutal, with funds fleeing at an alarming rate.

Over the past year, Stellantis' share price has halved, dropping from over $26 to less than $13 today, with its market value evaporating by over $30 billion. Investors are paying the price for the automaker's underperformance with their hard-earned money.

3. The Mask Falls Off

In the global arena, Stellantis is grappling with a double whammy of 'internal and external woes.'

Internally, the multi-brand structure leads to sluggish decision-making, and management turmoil is frequent – Carlos Tavares' abrupt departure triggered a seismic shift at the top, and the selection of a new CEO remains uncertain.

Externally, on one hand, sales in key markets such as Europe and North America continue to decline;

On the other hand, the substantial investment in the electric transition and the subdued market demand create a 'scissors gap,' with massive R&D expenditures failing to translate into sales growth. Despite partnering with the Chinese newcomer Zero Run, the impact remains minimal.

Stellantis' collapse in China is almost tragic. After the delisting of GAC FCA and the sale of Changan PSA, the domestic production line of Jeep was shut down, and the DS brand withdrew from the market.

Now, it barely survives on Dongfeng Peugeot Citroen Automobiles, with sales of less than 70,000 units last year.

Following the surge of Chinese independent brands, Stellantis' story in China has been relegated to a minor supporting role, occupying an extremely marginalized position with poor market presence.

Worse still, the globalization offensive of Chinese automakers is sweeping through markets such as Europe, Southeast Asia, and the Middle East, putting Stellantis' traditionally strong regions at risk.

Stellantis' mask has been torn off by Chinese automakers.

Conclusion: Arrogance and Short-sightedness

The mask covering Stellantis' net profit has been ripped away, reflecting the collective pain of traditional automakers in their transition. It serves as a prism, refracting the collective anxiety of traditional automakers amidst the electrification wave.

As Tesla and others redefine cars through software, and BYD and others dominate the market with cost-effectiveness, this once-renowned giant for 'cost reduction and efficiency enhancement' has finally revealed its true colors in the cracks of the era – a giant weighed down by arrogance and short-sightedness.