Vauxhall owner Stellantis missed forecasts on Tuesday after first-quarter revenue dropped 12 per cent to €41.7bn (£35.6bn) on lower sales and foreign exchange effects.
Shares in the Dutch carmaker, which owns brands including Vauxhall and Peugeot, fell 2.6 per cent by mid-morning.
Chief financial officer Natalie Knight said year-over-year shipments and net revenues comparisons were “difficult due to transitions in our next generation product portfolio manufactured on new platforms.”
The company launched four new models out of a plan to launch 25 across the year. Some 18 battery electric makes will also come to market and Knight said this “sets the stage for materially improved growth and profitability in the second half of the year.
Net profit grew 11 per cent to €18.6bn (£15.9bn), propped up by a 21 per cent year-on-year rise in global BEV sales, and a 27 per cent rise in light electric vehicle (LEV) sales.
“We are delivering clear improvements in key commercial dynamics with customer sales outpacing shipments. We are reducing inventories to reinforce our strong relative pricing ahead of our new or mid-cycle product launches this year in key regions,” Knight added.
Despite the downturn, Stellantis investors received bumper payouts, with €6.6bn (£5.7bn) in cash returned through dividends and share buybacks, an increase of 53 per cent.
Pending shareholder approval, the automaker and owner of the Vauxhall brand has proposed a dividend of €1.55 (133p) per share, an increase of approximately 16 per cent compared to the prior year.
Chief executive Carlos Tavares warned in February the firm faced a “turbulent” year, as second-half profit was hit by strikes at the ‘Detroit Three’ automakers.
However, full-year profit and revenue came in at record levels. Tavares said: “We have become a new global leader in our industry and will remain rock solid as we look to a turbulent 2024.”