Stellantis investors approve $2.26B dividend, halt stock buybacks

Stellantis, the automotive giant formed in 2021 through the merging of Fiat Chrysler Automobiles and PSA Group, faced a challenging year as profits dipped in 2024. Chairman John Elkann expressed concerns over the risks facing the American and European car industries amid ongoing challenges. Despite these setbacks, the company remains resilient and is preparing to name a new CEO to succeed Carlos Tavares in early 2025.

During the annual general meeting in Amsterdam, Stellantis shareholders greenlit a dividend payment. However, stock buybacks have been put on hold temporarily due to prevailing difficulties. The approved dividend of 77 cents (0.68 euros) per share, scheduled for distribution on May 5, amounts to approximately $2.26 billion (2 billion euros).

Elkann opened the meeting by acknowledging the disappointing performance in 2024, attributing the decline to internal and external factors. While the company reported a net profit of $5.8 billion (5.5 billion euros) in 2024, it also experienced a drastic 70% drop compared to the previous year. Challenges in key markets, such as North America and Europe, contributed to this decline, along with inventory issues. However, Stellantis is addressing these concerns and gearing up for new product launches while enhancing pricing strategies for specific Jeep models.

Looking ahead to 2025, the company faces looming tariff threats that could exacerbate existing difficulties. Elkann expressed optimism following President Donald Trump’s remarks hinting at possible tariff exemptions for automakers. These exemptions, if granted, would be a positive development for Stellantis and others importing vehicles and components into the U.S. Elkann highlighted the impact of tariffs on vehicles, aluminum, steel, and parts, in addition to the challenges posed by stringent greenhouse gas emissions regulations in Europe.

The combination of tariffs and regulations not only affects the bottom line but also jeopardizes jobs, innovation, and community strength within the automotive sector. Elkann emphasized that the health of the American and European car industries is crucial, emphasizing the importance of supporting and preserving these sectors for their economic and social contributions.

Despite the headwinds, Stellantis remains dedicated to navigating the complex landscape of the global automotive industry. The company’s resilience in the face of challenges, coupled with strategic planning and decision-making, positions it well to overcome obstacles and emerge stronger in the future. As Stellantis moves forward, it continues to adapt to market conditions, innovate in product development, and uphold its legacy as a leading force in the automotive world.