ARCADIA, Calif. - Segway-Ninebot, known for its electric scooters and micromobility solutions, has announced a strategic partnership with Mopar, the service and parts division of Stellantis (NYSE:STLA), to distribute Segway products through select Chrysler, Dodge, Fiat, Jeep, and Ram dealers in North America.
This collaboration enables Mopar dealers to offer a range of Segway's electric scooters and GoKarts as an additional purchase option for customers buying new or used vehicles. The move is aimed at providing convenient, eco-friendly transportation solutions for short distances, complementing Stellantis' automotive offerings.
Segway's Vice President of Sales, Tom Hebert, noted that the partnership aligns with both companies' commitment to innovation and sustainability, offering customers a diverse mobility experience. Mike Koval Jr., Senior Vice President and Head of Mopar North America, expressed confidence in the partnership, highlighting Segway's reputable brand in the personal transportation sector.
The agreement marks a significant expansion for Segway-Ninebot, making its products more accessible to consumers through Mopar's extensive dealer network. The available products include Segway's C2 Pro, E2 Pro, F2, Max G2, and GoKart Pro2, all designed to enhance the customer experience and support a sustainable future.
Segway-Ninebot, formed from the strategic combination of Segway and Ninebot in 2015, has established itself as a leader in electric personal transportation. Mopar, with over 85 years of history, has evolved from a line of antifreeze products to a comprehensive vehicle care and performance parts provider.
As part of Stellantis, Mopar continues to offer exceptional service and genuine parts, reinforcing the synergy between the two brands. The partnership is based on a press release statement and reflects the ongoing trend of automotive companies embracing micromobility solutions to meet evolving consumer demands.
In other recent news, Stellantis is on the brink of securing approval from the Italian government for the sale of a majority stake in its robotics division, Comau, to private equity firm One Equity Partners. This is a key step in the company's plans to divest from Comau. Meanwhile, the United Auto Workers union at Stellantis's Los Angeles parts distribution center has voted to authorize a strike, raising the potential for labor disputes that could affect operations at the center.
RBC Capital has downgraded Stellantis stock from Outperform to Sector Perform due to concerns about profit warnings and pricing pressures. The firm also reduced the price target to €13.00 from the previous €17.00. Bernstein SocGen Group also adjusted its outlook on Stellantis shares, reducing the price target from €18.00 to €11.00, maintaining a Market Perform rating on the stock following a significant revision of the company's financial forecasts.
These developments come in the wake of Stellantis's announcement of a substantial downgrade in its 2024 earnings and free cash flow projections. The company's adjusted operating income margin has been revised to 5.5%-7.5%, and it expects its free cash flow to range from negative €5 to €10 billion. Despite these challenges, Stellantis recently announced a $406 million investment in three Michigan facilities to bolster its focus on electric vehicle production. These are among the recent developments influencing the operations and financial outlook of Stellantis.
InvestingPro Insights
Stellantis' (STLA) strategic partnership with Segway-Ninebot through its Mopar division aligns with the company's efforts to diversify its offerings and tap into the growing micromobility market. This move comes at a time when Stellantis faces some financial headwinds, as reflected in recent InvestingPro data.
According to InvestingPro, Stellantis' revenue growth has declined by 7.25% over the last twelve months as of Q2 2024, with a more pronounced quarterly revenue drop of 13.57% in Q2 2024. This partnership could potentially help offset some of these declines by introducing new revenue streams through Segway product sales.
Despite these challenges, Stellantis maintains a strong financial position. An InvestingPro Tip highlights that the company "holds more cash than debt on its balance sheet," which provides financial flexibility to pursue initiatives like the Segway partnership. Additionally, Stellantis is "trading at a low earnings multiple" with a P/E ratio of 2.69, suggesting the stock may be undervalued relative to its earnings.
Investors should note that Stellantis offers a significant dividend yield of 9.36%, which could be attractive for income-focused shareholders. However, it's worth mentioning that the dividend growth has declined by 14.18% over the last twelve months.
For those interested in a deeper analysis, InvestingPro offers 14 additional tips for Stellantis, providing a more comprehensive view of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.