Jeep, Ram parent’s profits drop 70 per cent, but it sees brighter days ahead - Related to profits, as, 3s, parent’s, days
Jeep, Ram parent’s profits drop 70 per cent, but it sees brighter days ahead
Stellantis – the parent firm of Jeep, Ram, Peugeot and Fiat, among others – reported a significant profit decrease in 2024, but it’s forecasting a recovery this year.
Earlier this week, Stellantis revealed its net profit had dropped from €[website] billion (A$[website] billion) in 2023 to €[website] billion (A$[website] billion) in 2024, a decline of 70 per cent.
It’s the latest in what’s been a rough 12 months for the Netherlands-based conglomerate, whose CEO Carlos Tavares resigned with immediate effect in December 2024, having initially revealed his plans to retire in 2026.
Despite this, Stellantis – currently without a permanent CEO – says it’s been making a number of key actions to turn its fortunes around.
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“In the 90 days since the leadership transition began, and while the process to select the next CEO within the first half of 2025 continues, the interim leadership team has taken quick, decisive actions to improve the corporation’s performance and profitability,” it presented in a media statement.
It says it expects a “return to profitable growth and positive cash generation in 2025”.
, it plans to launch 10 new models across its stable of over a dozen brands in 2025, almost all of which will be on new STLA family platforms. It says it’s prioritising launches of critical models in key segments.
Other measures to strengthen the enterprise include rebuilding relationships with US and European dealers, improving communication with suppliers, and “making more effective use of available flexibilities under CO2 regulations”.
The US has traditionally been a key market for Jeep, Ram, Dodge and Chrysler even before the brands were pulled under the Stellantis umbrella at the start of 2021, however friction between the conglomerate and local dealers has been exacerbated by slowing sales.
Last year, Stellantis National Dealer Council chairman Kevin Farrish – who runs a Jeep, Ram, Dodge and Chrysler dealership in Virginia – sent an open letter to Mr Tavares, accusing the business of ignoring warnings which has led to “disaster” for all involved.
“For over two years now, the US Stellantis National Dealer Council has been sounding this alarm to your US executive team, warning them that the course you had set for Stellantis in the US was going to be a disaster in the long run,” stated Mr Farrish in the letter.
“A disaster not just for us, but for everyone involved – and now, that disaster has arrived.
“In 2023, you engineered a record year of profitability for Stellantis, earning you the title of the highest-compensated automotive CEO. You personally earned a record amount of almost US$40 million (A$[website] million) that year.
“Unfortunately, the engineering and structuring of that year have led us to exactly where we told your executives we would be today. The reckless short-term decision-making to secure record profits in 2023 has had devastating, yet entirely predictable, consequences in the US market.
“Those consequences include the rapid degradation of our iconic American brands – brands like Jeep, Dodge, Ram, and Chrysler that have over a century of history in America.
“The market share of your brands has been slashed nearly in half, Stellantis stock price is tumbling, plants are closing, layoffs are rampant, and key executives fleeing the business. Investor lawsuits, supplier lawsuits, strikes – the fallout is mounting. Your own distribution network, your dealer body, has been left in an anaemic and diminished state.”.
While Stellantis’ US division pushed back on the dealer council chief’s letter, calling it a “personal attack”, Mr Tavares resigned only a handful of months later.
An action plan for the US, which included increased incentives on 2024 and older model year vehicles there to help clear the glut of stock, has helped, with Stellantis reporting its US inventories at the end of 2024 were 20 per cent lower year-on-year than 2023.
In Australia, Stellantis is only directly responsible for distributing Jeep, Fiat, Abarth and Alfa Romeo. It also distributes Leapmotor, a Chinese brand with which Stellantis has established a joint venture.
Ateco handles the distribution of Maserati and Ram, while Inchcape distributes Peugeot. It also previously handled Citroen, which departed Australia last year.
2024 was a rough year for Stellantis brands in Australia, with all of them posting double-digit declines. Here’s how they fared:
Ram: 3852 vehicles, down [website] per cent.
Jeep: 2377 vehicles, down [website] per cent.
Peugeot: 1896 vehicles, down [website] per cent.
Alfa Romeo: 561 vehicles, down [website] per cent.
Fiat (including Abarth): 527 vehicles, down [website] per cent.
Maserati: 377 vehicles, down [website] per cent.
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Peugeot Malaysia opens Peugeot Kuching 3S centre
Peugeot Malaysia has presented the opening Peugeot Kuching, which is the first Peugeot 3S (sales, service and spare parts) centre to be introduced in Sarawak. The outlet, operated by Heng Lian Enterprise, is strategically located in the heart of Kuching city centre.
Spanning 4,200 sq ft, the new facility is set to offer a comprehensive range of services to both new and existing Peugeot owners, Peugeot Kuching’s showroom floor has space to house four vehicle displays, and there is also a dedicated vehicle delivery bay to provide a smooth handover process for new owners.
Beyond sales, its fully integrated service centre offers maintenance, repairs and warranty support, catering to the growing community of Peugeot drivers in the state. To ensure the highest standards of expertise, the corporation’s aftersales service team has undergone rigorous training, both online and offline, in collaboration with Stellantis Malaysia.
“Our strategy to strengthen Peugeot’s presence, growth, and foothold in Malaysia involves expanding our dealership network, and East Malaysia plays a crucial role in this expansion. We are pleased to work with Heng Lian and welcome them to the network as our first 3S centre in the state and will continue to expand our presence to our East Malaysian consumers,” noted Daniel Gonzalez, COO, ASEAN, Stellantis.
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Lucid CEO Peter Rawlinson Steps Down as New Platform Launch Looms
Lucid Motors showcased yesterday that its CEO Peter Rawlinson has stepped down and will now serve as a technical advisor to the board.
Marc Winterhoff, Lucid's COO, will serve as the interim CEO while the automaker searches for a permanent leader.
Lucid in the recent past launched its second car, the Gravity SUV, and is developing a mid-sized platform that will spawn three new models starting in late 2026.
It has been an eventful start to 2025 for American EV startup Lucid Motors. Deliveries of its second model, the Gravity SUV, got underway earlier this year. Now, Lucid has showcased that its CEO, Peter Rawlinson, has stepped down and will transition to become strategic technical advisor to the board. The organization's COO, Marc Winterhoff, has been named the interim CEO.
"Now that we have successfully launched the Lucid Gravity, I have decided it is finally the right time for me to step aside from my roles at Lucid," Rawlinson mentioned in a Lucid press release. Rawlinson served as the head of the startup for 12 years, presiding over the organization's renaming from Atieva to Lucid Motors in 2016 and leading the successful launch of the brand's first vehicle, the Air sedan.
Lucid Motors Interim CEO Marc Winterhoff.
Curiously, Rawlinson was absent from the corporation's fourth-quarter 2024 earnings call yesterday. When questioned about his absence, Winterhoff simply mentioned, "Peter made the decision" to step back from day-to-day activities and "pass the baton."
Winterhoff will lead Lucid while the business begins its search for a new CEO. Winterhoff will be tasked with continuing to ramp up Gravity production over the course of this year. Lucid plans to expand the range in late 2025 by adding a new Touring trim beneath the Grand Touring, the only version of the Gravity currently available. This will drop the Gravity's starting price by $15,000, from $96,550 for the Grand Touring to $81,550 for the Touring.
Winterhoff will also oversee the continued development of the organization's new mid-sized platform. Lucid says this platform will spawn three vehicles, one of which it has teased already. This vehicle, an SUV, is expected to adopt the name Earth, and Rawlinson expressed last year that it would start at around $48,000. Another mid-size car will likely be a sedan to slot in under the Air, but it's unclear what form the third vehicle will take.
The mid-sized Lucid SUV is expected to arrive in late 2026, and Winterhoff stated on the earnings call that we could see an early version of the first mid-size model by the end of this year or the beginning of 2026. Winterhoff also mentioned the ongoing development of the "low-cost" Atlas drive unit, which will be utilized for its mid-sized vehicles.
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Market Impact Analysis
Market Growth Trend
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|---|
| 8.3% | 10.0% | 10.5% | 11.6% | 12.3% | 12.7% | 12.8% |
Quarterly Growth Rate
| Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 |
|---|---|---|---|
| 10.9% | 11.7% | 12.4% | 12.8% |
Market Segments and Growth Drivers
| Segment | Market Share | Growth Rate |
|---|---|---|
| Connected Cars | 35% | 14.2% |
| Autonomous Driving | 22% | 18.5% |
| EV Technology | 28% | 21.9% |
| Telematics | 10% | 9.7% |
| Other Automotive Tech | 5% | 6.3% |
Technology Maturity Curve
Different technologies within the ecosystem are at varying stages of maturity:
Competitive Landscape Analysis
| Company | Market Share |
|---|---|
| Tesla | 16.9% |
| Waymo | 12.3% |
| NVIDIA DRIVE | 10.7% |
| Bosch | 9.5% |
| Continental | 7.8% |
Future Outlook and Predictions
The Peugeot Jeep Parent landscape is evolving rapidly, driven by technological advancements, changing threat vectors, and shifting business requirements. Based on current trends and expert analyses, we can anticipate several significant developments across different time horizons:
Year-by-Year Technology Evolution
Based on current trajectory and expert analyses, we can project the following development timeline:
Technology Maturity Curve
Different technologies within the ecosystem are at varying stages of maturity, influencing adoption timelines and investment priorities:
Innovation Trigger
- Generative AI for specialized domains
- Blockchain for supply chain verification
Peak of Inflated Expectations
- Digital twins for business processes
- Quantum-resistant cryptography
Trough of Disillusionment
- Consumer AR/VR applications
- General-purpose blockchain
Slope of Enlightenment
- AI-driven analytics
- Edge computing
Plateau of Productivity
- Cloud infrastructure
- Mobile applications
Technology Evolution Timeline
- Technology adoption accelerating across industries
- digital transformation initiatives becoming mainstream
- Significant transformation of business processes through advanced technologies
- new digital business models emerging
- Fundamental shifts in how technology integrates with business and society
- emergence of new technology paradigms
Expert Perspectives
Leading experts in the automotive tech sector provide diverse perspectives on how the landscape will evolve over the coming years:
"Technology transformation will continue to accelerate, creating both challenges and opportunities."
— Industry Expert
"Organizations must balance innovation with practical implementation to achieve meaningful results."
— Technology Analyst
"The most successful adopters will focus on business outcomes rather than technology for its own sake."
— Research Director
Areas of Expert Consensus
- Acceleration of Innovation: The pace of technological evolution will continue to increase
- Practical Integration: Focus will shift from proof-of-concept to operational deployment
- Human-Technology Partnership: Most effective implementations will optimize human-machine collaboration
- Regulatory Influence: Regulatory frameworks will increasingly shape technology development
Short-Term Outlook (1-2 Years)
In the immediate future, organizations will focus on implementing and optimizing currently available technologies to address pressing automotive tech challenges:
- Technology adoption accelerating across industries
- digital transformation initiatives becoming mainstream
These developments will be characterized by incremental improvements to existing frameworks rather than revolutionary changes, with emphasis on practical deployment and measurable outcomes.
Mid-Term Outlook (3-5 Years)
As technologies mature and organizations adapt, more substantial transformations will emerge in how security is approached and implemented:
- Significant transformation of business processes through advanced technologies
- new digital business models emerging
This period will see significant changes in security architecture and operational models, with increasing automation and integration between previously siloed security functions. Organizations will shift from reactive to proactive security postures.
Long-Term Outlook (5+ Years)
Looking further ahead, more fundamental shifts will reshape how cybersecurity is conceptualized and implemented across digital ecosystems:
- Fundamental shifts in how technology integrates with business and society
- emergence of new technology paradigms
These long-term developments will likely require significant technical breakthroughs, new regulatory frameworks, and evolution in how organizations approach security as a fundamental business function rather than a technical discipline.
Key Risk Factors and Uncertainties
Several critical factors could significantly impact the trajectory of automotive tech evolution:
Organizations should monitor these factors closely and develop contingency strategies to mitigate potential negative impacts on technology implementation timelines.
Alternative Future Scenarios
The evolution of technology can follow different paths depending on various factors including regulatory developments, investment trends, technological breakthroughs, and market adoption. We analyze three potential scenarios:
Optimistic Scenario
Rapid adoption of advanced technologies with significant business impact
Key Drivers: Supportive regulatory environment, significant research breakthroughs, strong market incentives, and rapid user adoption.
Probability: 25-30%
Base Case Scenario
Measured implementation with incremental improvements
Key Drivers: Balanced regulatory approach, steady technological progress, and selective implementation based on clear ROI.
Probability: 50-60%
Conservative Scenario
Technical and organizational barriers limiting effective adoption
Key Drivers: Restrictive regulations, technical limitations, implementation challenges, and risk-averse organizational cultures.
Probability: 15-20%
Scenario Comparison Matrix
| Factor | Optimistic | Base Case | Conservative |
|---|---|---|---|
| Implementation Timeline | Accelerated | Steady | Delayed |
| Market Adoption | Widespread | Selective | Limited |
| Technology Evolution | Rapid | Progressive | Incremental |
| Regulatory Environment | Supportive | Balanced | Restrictive |
| Business Impact | Transformative | Significant | Modest |
Transformational Impact
Technology becoming increasingly embedded in all aspects of business operations. This evolution will necessitate significant changes in organizational structures, talent development, and strategic planning processes.
The convergence of multiple technological trends—including artificial intelligence, quantum computing, and ubiquitous connectivity—will create both unprecedented security challenges and innovative defensive capabilities.
Implementation Challenges
Technical complexity and organizational readiness remain key challenges. Organizations will need to develop comprehensive change management strategies to successfully navigate these transitions.
Regulatory uncertainty, particularly around emerging technologies like AI in security applications, will require flexible security architectures that can adapt to evolving compliance requirements.
Key Innovations to Watch
Artificial intelligence, distributed systems, and automation technologies leading innovation. Organizations should monitor these developments closely to maintain competitive advantages and effective security postures.
Strategic investments in research partnerships, technology pilots, and talent development will position forward-thinking organizations to leverage these innovations early in their development cycle.
Technical Glossary
Key technical terms and definitions to help understand the technologies discussed in this article.
Understanding the following technical concepts is essential for grasping the full implications of the security threats and defensive measures discussed in this article. These definitions provide context for both technical and non-technical readers.
API beginner
How APIs enable communication between different software systemsplatform intermediate
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