WionDrive News Desk 
Stellantis, the world’s fourth-largest automaker, which was formed in 2021 through the merger of Fiat Chrysler and Peugeot maker PSA, has announced its intention to maintain its 2024 financial forecasts and increase its dividend payout in the coming year. The company, which encompasses a diverse portfolio of brands including Jeep, Ram, Citroen, Opel, and Alfa Romeo, made this declaration ahead of its investor day event scheduled to take place in Auburn Hills, Michigan.
In a statement released by Stellantis, the automaker outlined its plans to target the upper range of its dividend payout policy for 2025, aiming for a payout of 25% to 30% compared to the 25% paid in recent years. This move reflects the company’s commitment to rewarding its shareholders and returning excess cash to them. Stellantis further emphasised its intention to continue utilising share buybacks and ordinary dividends as a means of distributing surplus cash to its investors.
The timing of Stellantis’ investor day is particularly noteworthy, as it follows a recent announcement by authorities in the European Union, one of the company’s most significant markets. The EU stated that starting from July, additional duties ranging from 0% to 38.1% will be imposed on imported Chinese electric vehicles. This development is expected to have implications for the automotive industry, including Stellantis, as it navigates the evolving landscape of the electric vehicle market.
Despite the potential challenges posed by the EU’s decision, Stellantis reaffirmed its financial projections for the current year. The company expects to achieve an adjusted operating income margin of 10% to 11% in the first half of the year, although it anticipates that its industrial free cash flows will be noticeably lower compared to the previous year’s period. This guidance demonstrates Stellantis’ confidence in its ability to maintain its financial performance amidst the dynamic market conditions.
Looking ahead to 2024, Stellantis has pledged to reward its shareholders with a minimum of 7.7 billion euros (USD 8.32 billion) through a combination of dividends and share buybacks. This substantial sum underscores the company’s strong financial position and its dedication to generating value for its investors.
The announcement of Stellantis’ plans to increase its dividend payout and maintain its financial forecasts comes at a crucial time for the automotive industry. As the world transitions towards a more sustainable future, with a growing emphasis on electric vehicles, automakers are faced with the challenge of adapting to changing consumer preferences and regulatory requirements. Stellantis’ diverse portfolio of brands and its commitment to investing in innovative technologies position the company well to navigate these transformations.
Moreover, the merger that created Stellantis has provided the company with a robust foundation to capitalise on synergies and economies of scale. By leveraging the strengths of its constituent brands and streamlining its operations, Stellantis aims to enhance its competitiveness and profitability in the global automotive market.
