On Wednesday, Stellantis NV ( STLA ) , the Italian-Dutch auto giant, reported a first-quarter FY25 revenue decline of 14% year-on-year to 35.8 billion Euros ($40.7 billion).

The decrease in revenue was due to lower shipment volumes, as well as unfavorable mix and pricing.

For the first-quarter, consolidated shipments were 1,217 thousand units, a 9% decrease versus the same period in 2024, mainly driven by lower production in North America.

North America shipments were down 20%, reflecting lower January production, a consequence of extended holiday downtime, the initial ramp-up of updated 2025 Ram HD trucks and continued gaps from discontinued models.

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Enlarged Europe shipments dropped 8%, driven by transition gaps in certain A and B-segment vehicles replacing prior-generation products discontinued at the end of H1 2024, as well as a decline in LCV volumes.

Despite the revenue dip, Stellantis ( STLA ) introduced several new and refreshed models in Europe to strengthen its competitive edge.

The launch of the Fiat Grande Panda, Opel/Vauxhall Frontera and Citroën C3 Aircross helped push its EU30 market share up to 17.3%; a 1.9% rise from fourth-quarter 2024.

Stellantis ( STLA ) saw a notable uptick in new vehicle orders in the United States in March, up 82% from a year earlier. Strong retail demand for models like the Jeep Grand Cherokee, Compass, and the Ram 1500 and 2500 helped bolster its retail momentum in the U.S.

The company confirmed that its search for a new CEO remains on track and is expected to conclude by mid-2025.

"While Q1 2025 top-line results were below prior-year levels, other KPIs reflect early, initial progress on our commercial recovery efforts. North America is at a very early stage, with improvement in retail order intake, while we are seeing sequential improvement in EU30 market share," said CFO Doug Ostermann.

Outlook: The company noted that the effects of changing tariff rules are hard to predict, and rising competition adds further uncertainty. Strategies to address these challenges will be adjusted as needed.

Price Action: STLA shares traded lower by 3.81% at $9.22 at last check Wednesday.

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