myt Stellantis has published its warnings. The fourth largest automobile manufacturer in the world (Peugeot, Fiat, Chrysler, etc.) admitted on Monday, September 30, that it will not reach, in 2024, the 10% operating margin promised by its CEO Carlos Tavares: rather it will be between 5 and 5%. , 5 and 7%.
Two explanations for this important abandonment of the track. on the one hand “Actions taken to correct performance issues in North America”In other words, production cuts and promotions to sell off stock of Jeep and other Dodges will weigh on profitability. On the other, the “deterioration of the dynamics of the global automotive sector” is confirmed. The warning caused the stock price to drop nearly 15% on Monday. The share price has halved in six months.
Behind the difficulties of the automobile industry, also found at Volkswagen or Aston Martin, lies, of course, fierce competition from Chinese manufacturers. But we must also not forget that car manufacturers took advantage of post-Covid inflation to increase their profits. Now that the inflationary tide is receding, their margins are deflating.
Navigating scarcity
A true champion of “greed” (inflation born of corporate greed), Stellantis was able to take advantage of the shortages linked to the breakdown of global supply chains to promote the sale of its models. “all options” at the salty price. This strategy, combined with relentless cost control, allowed it to record, in 2023, a net profit of €18.6 billion, the second highest in the CAC 40 behind that of TotalEnergies.
Would this super profit, and that of other elegant multinationals, have justified an exceptional tax in the name of national solidarity as the opposition demanded? The government did not move forward in the name of the dogma of fiscal stability. Given the deterioration of public accounts, Prime Minister Michel Barnier is now considering a temporary surcharge on the profits obtained in France by large groups.
Stellantis’ warning serves as a reminder that, in a context of disinflation, such a contribution will not reach its full potential in 2023. As for the aforementioned tax on share buybacks, if it is not applied from 2024, you only run the risk that it runs out. fumes. When it comes to taxes and stock trading, timing is everything.
