Today at the first Stellantis Investor Day in Auburn Hills, Michigan CEO Carlos Tavares presented what he claimed were nine key strategic differentiators that Stellantis is using “to unlock value and address the disruption and reinvention of the auto industry worldwide.”
“What consumers around the world are looking for is clean, safe and affordable mobility. This is the reason we exist. We are driving a generational shift in technology and a product wave built on multi-energy platforms and flexible operations with above-group profitability in our commercial vehicles business. Together with the activation of our uniquely aligned partnership with Leapmotor, an innovative Chinese new energy vehicle maker, we’re confident we can deliver what customers want while providing strong shareholder returns this year, and beyond,” Stellantis CEO Carlos Tavares.
No matter how nuanced a view you take, Jeep is central to the plan. The China Leapmotor strategy is either daft – given the expanding global trade war with China or dictated by reality. Perhaps more significant in this moment, Stellantis re-affirmed its 2024 financial guidance and capital return plan, which promises double-digit Adjusted Operating Income (AOI) margin and positive industrial free cash flows. Stellantis will provide ≥€7.7 billion in dividends and buybacks during 2024.
CFO Natalie Knight provided specific observations on first and second-half expectations within the 2024 period. She said the H1 outlook is 10-11% AOI margin, with industrial free cash flows visibly below the prior year period. Significant product launches, cost initiatives and anticipated improvement in working capital together support H2 sequential improvement opportunity in AOI and industrial free cash flow are coming.
Stellantis is also improving its capital plan in several ways:
- Setting target liquidity levels of 25-30% of revenues for the mid-term, shifting focus to capital efficiency and supporting strong shareholder returns.
- The Company will continue to use share buybacks and ordinary dividends to return excess cash to shareholders.
- In 2025, the Company will target the upper range of its 25-30% dividend payout policy, vs. 25% in recent years.
About Ken Zino
Ken Zino, publisher (kzhw@aol.com), is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
Zino is at home on test tracks, knows his way around U.S. Congressional hearing rooms, auto company headquarters, plant floors, as well as industry research and development labs where the real mobility work is done. He can quote from court decisions, refer to instrumented road tests, analyze financial results, and profile executive personalities and corporate cultures.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
Stellantis Promise or Puff? – Clean, Safe, Affordable Mobility
Today at the first Stellantis Investor Day in Auburn Hills, Michigan CEO Carlos Tavares presented what he claimed were nine key strategic differentiators that Stellantis is using “to unlock value and address the disruption and reinvention of the auto industry worldwide.”
“What consumers around the world are looking for is clean, safe and affordable mobility. This is the reason we exist. We are driving a generational shift in technology and a product wave built on multi-energy platforms and flexible operations with above-group profitability in our commercial vehicles business. Together with the activation of our uniquely aligned partnership with Leapmotor, an innovative Chinese new energy vehicle maker, we’re confident we can deliver what customers want while providing strong shareholder returns this year, and beyond,” Stellantis CEO Carlos Tavares.
No matter how nuanced a view you take, Jeep is central to the plan. The China Leapmotor strategy is either daft – given the expanding global trade war with China or dictated by reality. Perhaps more significant in this moment, Stellantis re-affirmed its 2024 financial guidance and capital return plan, which promises double-digit Adjusted Operating Income (AOI) margin and positive industrial free cash flows. Stellantis will provide ≥€7.7 billion in dividends and buybacks during 2024.
CFO Natalie Knight provided specific observations on first and second-half expectations within the 2024 period. She said the H1 outlook is 10-11% AOI margin, with industrial free cash flows visibly below the prior year period. Significant product launches, cost initiatives and anticipated improvement in working capital together support H2 sequential improvement opportunity in AOI and industrial free cash flow are coming.
Stellantis is also improving its capital plan in several ways:
About Ken Zino
Ken Zino, publisher (kzhw@aol.com), is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. Zino is at home on test tracks, knows his way around U.S. Congressional hearing rooms, auto company headquarters, plant floors, as well as industry research and development labs where the real mobility work is done. He can quote from court decisions, refer to instrumented road tests, analyze financial results, and profile executive personalities and corporate cultures. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.