Stellantis
$STLAM (-0.17%) postpones the launch of the first electric pickup model from Ram to 2026 citing "slowing demand in the industry" for this segment.

Stellantis $STLAM (-0.17%) and the Chinese 🇨🇳Batteriekonzern CATL are investing up to 4.1 billion euros in the construction of a joint battery cell plant in Zaragoza, Spain.

Production is scheduled to start 2026 and supply lithium iron phosphate (LFP) batteries for vehicles in the B and C segments.

The factory could reach an annual capacity of up to 50 GWh, which would be enough to produce over 900.000 Opel Mokka Electric with batteries.

The joint venture will be equally owned by Stellantis and CATL, and the deal is scheduled to close in 2025. -Handelsblatt

The US Department of Energy announced that it plans to invest up to 7.5 billion US dollars to a joint venture between Stellantis
$STLAM (-0.17%)the parent company of Chryslerand Samsung and Samsung.

The funds are to support the construction of two lithium-ion battery factories for electric vehicles in Indiana.

$STLAM (-0.17%) slow time to build up position

for long term

12%dividends 😜

can go even lower yes !!!

i am worried no !!!

take a $WIF (+2.96%) 😁

02.12.2024

GameStop closes German stores + LogiTech to become an "iconic" brand + 4 important dates this week + Head of Opel parent company Stellantis resigns

The 69 German stores of the video game retailer Gamestop $GME (+2.79%) are to be closed by January 31, 2025. This was reported by the industry portal "Gameswirtschaft". The American company's German headquarters could not be reached for comment. However, store employees confirmed the plans to the Frankfurter Allgemeine Zeitung (FAZ) by telephone. They had been informed internally. Pre-orders will no longer be accepted and vouchers will no longer be sold. "Gameswirtschaft" refers to information from the retailer's suppliers, which coincides with reports from employees. (FAZ)

The CEO of the computer accessories manufacturer, Hanneke Faber, wants out of Logitech $LOGN (+0.47%) into an "iconic brand". Sales are to double by 2031. The brand's many fans are a good starting point. "Now we have to take the brand to the next level so that people really love it," the SonntagsZeitung quotes from a meeting with Faber in Zurich. It needs a "wow" factor like Apple. Faber also wants to make gains in hybrid work and artificial intelligence. Meanwhile, Logitech needs to improve again in China. Faber believes he is well prepared for possible US tariffs on Chinese imports. "We used to be dependent on China, now we have a broadly diversified global supply chain." (SoZ, p. 40)

4 dates that will be important this week:

• Details on US labor market developments in October

The results of the Job Openings and Labor Turnover Survey (Jolts) for October provide insights into the tendency of employers and employees to lay off and the number of vacancies on the US labour market. The month under review was heavily influenced by Hurricanes Helen and Milton.

>>> Tuesday, 03.12.2024; 16:00

• German incoming orders fall in October

Incoming orders in German industry are likely to have fallen in October. Economists surveyed by Dow Jones Newswires expect them to have fallen by 2.0 percent compared to the previous month, after rising by 4.2 percent in September. Overall, there is a slight recovery trend in orders. In the second and third quarters, it had already moved away somewhat from the low recorded in the first quarter of the year.

>>> Thursday, 05.12.2024; 08:00

• German production increases in October

Production in Germany's manufacturing sector was as weak in the third quarter as it had been during the coronavirus lockdowns. But while companies wanted to produce back then but were unable to do so, the opposite is true today. The cushion of orders has melted away and economists fear that the situation on the labor market could soon deteriorate. For October, the economists surveyed by Dow Jones Newswires expect production to have risen by 1.0 percent compared to the previous month.

>>> Friday, 06.12..2024; 08:00

• US employment figures rise more strongly again in November

The number of people employed in the US economy is likely to have risen more sharply again in November. According to the Factset consensus, analysts expect it to have risen by 210,000 compared to the previous month, after increasing by just 12,000 in September. The weak September figure was caused by hurricanes Helen and Milton. The unchanged very low unemployment rate of 4.1 percent showed that there was probably nothing more to it. An increase to 4.2 percent is expected for October and a monthly increase of 0.3 percent for wages, which means an annual increase of 3.9 percent. After years of fighting inflation, the US Federal Reserve is now focusing more strongly on the labor market.

>>> Friday, 06.12..2024; 14:30

Suffering from problems in the important US market and a weak industry situation, car manufacturer Stellantis $STLAM (-0.17%) must look for a new boss sooner than expected. The Board of Directors has accepted the resignation of Carlos Tavares, the multi-brand group (including Peugeot, Citroen, Fiat, Chrysler, Jeep, Alfa Romeo) announced on Sunday evening. The Volkswagen rival had already announced in October that the search for a successor to Tavares was underway, as he would not be renewing his contract, which expires in 2026. A new boss is now to be found in the first half of 2025, the company said on Sunday. Until then, a management committee will be formed under Chairman of the Board of Directors John Elkann. Tavares led Stellanti's formation of the car giant through the mega merger of PSA and Fiat Chrysler in 2021. The manager only had to lower the profit outlook for 2024 at the end of September this year. The car manufacturer usually makes the lion's share of its profits in the North American market with large SUVs and pick-ups. However, there are currently too many unsold cars in dealers' yards, which is reducing sales prices. The situation on the car markets in other countries is also bleak overall. The company confirmed its lowered outlook for the year on Sunday.

https://www.handelsblatt.com/unternehmen/industrie/stellantis-tavares-tritt-bei-opel-mutter-stellantis-ueberraschend-zurueck/100091996.html

Monday: Stock market dates, economic data, quarterly figures

ex-dividend of individual stocks

LVMH Moet Hennessy Louis Vuitton EUR 5.50

Christian Dior EUR 5.50

Lockheed Martin 3.30 USD

McDonald's USD 1.77

Nike 0.38 USD

Quarterly figures / company dates Europe

07:00 Prosus 1H results

16:00 Prosus analyst conference

No time specified: Schneider Electric Investor Day

Economic data

• 09:45 IT: Purchasing Managers' Index/PMI manufacturing November PROGNOSIS: 46.0 previous: 46.9
• 09:50 FR: Purchasing Managers' Index/PMI Manufacturing (2nd release) November FORECAST: 43.2 1st release: 43.2 previous: 44.5
• 09:55 DE: Purchasing Managers' Index/PMI Manufacturing (2nd release) November FORECAST: 43.2 1st release: 43.2 Previous: 43.0
• 10:00 EU: Purchasing Managers' Index/PMI manufacturing Eurozone (2nd release) November FORECAST: 45.2 1st release: 45.2 Previous: 46.0
• 10:00 DE: VDMA, Incoming orders mechanical and plant engineering October
• 10:30 UK: Purchasing Managers' Index/PMI manufacturing (2nd release) November PROGNOSIS: n.a. 1st release: 48.6 previous: 49.9
• 11:00 EU: Labor Market Data October Eurozone Unemployment Rate PROGNOSE: 6.3% PREVIOUS: 6.3%
• 15:45 US: Purchasing Managers' Index/PMI Manufacturing (2nd release) November Forecast: 48.8 1st release: 48.8 Previous: 48.5
• 16:00 US: Construction Spending October FORECAST: -0.1% yoy previous: +0.1% yoy
• 16:00 US: ISM Manufacturing Index November FORECAST: 48.0 points previous: 46.5 points

Stellantis $STLAM (-0.17%) has announced that it will temporarily cease production at its plants in southern Italy. This is due to falling market demand and the effects of the new Euro 7 emissions standards, which are causing higher costs for petrol and diesel vehicles. Models with lower demand are particularly affected. This measure underlines the challenges facing car manufacturers in Europe due to stricter environmental regulations and changing market conditions.

Further details can be found in the article on Reuters.

The news is based on what I personally consider to be reputable sources. However, I do not guarantee their accuracy. No advice.

Stellantis Q3 2024 $STLAM (-0.17%)

Financial performance

• Net revenueStellantis reported net revenue of EUR 33.0 billion for the third quarter of 2024, a decrease of 27% compared to the third quarter of 2023. This decrease was mainly caused by lower shipments, an unfavorable product mix as well as price adjustments and exchange rate changes.
• Consolidated shipmentsThe company recorded consolidated deliveries of 1,148,000 units, a decrease of 20% year-on-year.

Balance sheet overview

• No specific balance sheet details are provided in the report, however a reduction in total inventory to 1,330,000 units as of September 30, 2024 is mentioned, a decrease of 129,000 units year-to-date.

Revenue overview

• Net revenueAs mentioned above, net revenue amounted to EUR 33.0 billion for the third quarter of 2024.

Cash flow overview

• Industrial free cash flows: The forecast for industrial free cash flows for the 2024 financial year is between EUR -5 billion and EUR -10 billion.

Key figures and profitability metrics

• Adjusted operating income margin (AOI): The forecast for the AOI margin for the 2024 financial year is between 5.5% and 7%.

Segment information

• North America: Deliveries decreased by 36%, while net revenue decreased by 42%, due to lower volumes and increased incentive payments.
• Extended Europe: Deliveries decreased by 17% and net sales fell by 12% due to lower shipment volumes and pricing pressure.
• Middle East and AfricaMiddle East and Africa : Shipments decreased by 26 % and net sales fell by 37 %.
• South America: Shipments increased by 14 %, but net sales decreased by 2 % due to negative exchange rate effects.
• China and India & Asia-Pacific: Deliveries decreased by 30% and net sales decreased by 40%.
• Maserati: Deliveries fell by 60% and net sales decreased by 61%.

Competitive position

• Stellantis has a strong position in the EU30 commercial vehicle market, with a market share of over 29% by September. In the battery electric vehicle (BEV) segment, the company leads with a market share of 32.8%.

Forecasts and management commentary

• Stellantis reaffirmed its financial guidance for 2024, which was updated on September 30, 2024. The company plans to launch around 20 new products in 2024, with a focus on multi-energy flexibility.

Risks and opportunities

• RisksThe report highlights challenges such as production bottlenecks, measures to reduce inventory and a difficult market environment in Europe.
• OpportunitiesStellantis is focusing on a product offensive with new launches and the expansion of its BEV offering, which could drive future growth.

Summary of the results

Stellantis is in a period of transition with a significant decline in net sales and deliveries in most regions. Despite these challenges, the company is actively managing inventory levels and focusing on a robust pipeline of new product launches. The strategic focus on multi-energy platforms and expansion in BEV positions Stellantis to capitalize on future market opportunities, although there are headwinds in market conditions and currency impacts to overcome. The company's commitment to its financial guidance reflects confidence in overcoming current operational challenges.

Positive aspects

• Product launches and innovationStellantis is on track to launch around 20 new models in 2024, with a focus on multi-energy flexibility, including hybrid, all-electric and gasoline-powered powertrains. This strategic move is expected to expand market presence and consolidate platforms.
• Strong demand for new productsThe company has received strong orders for new products, including more than 50,000 units for the all-new Citroën C3 and around 75,000 units for the all-new Peugeot 3008.
• Market leadership in the EU30 commercial vehicle marketStellantis holds a leading position in the EU30 commercial vehicle market with over 29% market share by September and a 32.8% market share in the BEV segment.
• Inventory management: The company has successfully reduced inventory at US dealers by over 80,000 units since June 30, 2024 and is targeting a total reduction of 100,000 units by November 30, 2024
• Strategic partnershipsStellantis has partnered with Leapmotor International to distribute advanced BEV technology in Europe, increasing its competitiveness in the electric vehicle market.

Negative aspects

• Decrease in net revenuesStellantis reported a significant year-on-year decrease in net revenue of 27% for the third quarter of 2024, mainly due to lower deliveries and unfavorable product mix, price and foreign exchange impacts.
• Decrease in deliveriesConsolidated deliveries decreased by 20% year-on-year, reflecting production bottlenecks and a challenging market environment in Europe.
• Challenges in regional performanceSeveral regions recorded declines in deliveries and net revenues, including North America (deliveries -36%, revenues -42%) and Extended Europe (deliveries -17%, revenues -12%).
• Maserati performanceMaserati experienced a significant decline, with deliveries down 60% and net revenues down 61% due to lower volumes and weakening demand in key markets.
• Forecast for industrial free cash flowsThe forecast for industrial free cash flows is negative and ranges between EUR -5 billion and EUR -10 billion for the financial year 2024, signaling potential cash flow challenges.