Chicago, Illinois – Stellantis U.S. new vehicle sales faced a substantial decline during the third quarter, marking a continuation of a downward trend. Despite CEO Carlos Tavares’ efforts to address previous mistakes, the Transatlantic carmaker reported a 19.8% decrease in sales from July through September, compared to the same period in 2023. This decline also represented an 11.5% drop from the preceding three months of the current year.
Experts had predicted that Stellantis would underperform other major automakers in terms of sales during the third quarter. Forecaster Cox Automotive had estimated a sales decrease of approximately 21% for the automaker, while industrywide third-quarter sales were expected to be down around 2% compared to the previous year, as projected by Cox and fellow forecaster Edmunds.
Despite the challenges, Stellantis noted some positive developments. The company mentioned a rise in market share from 7.2% to 8% during the third quarter, along with an 11.6% reduction in U.S. vehicle inventory. Stellantis’ head of U.S. retail sales, Matt Thompson, emphasized the actions being taken to drive sales and prepare for the introduction of 2025 models.
The third quarter saw sales declines across all of Stellantis’ brands, with Chrysler and Dodge experiencing reductions of over 40%. The Ram truck brand also faced a decline of approximately 19%, while Jeep’s sales were down about 6% year over year. Additionally, the company’s stock has been struggling, with shares on the New York Stock Exchange dropping 41% this year and hitting a new 52-week low.
Stellantis has been dealing with various challenges, including a recent recall involving certain plug-in hybrid electric Jeep models due to fire risks. The company also revised its 2024 profit margin forecast downwards. Despite the setbacks, CEO Carlos Tavares has been transparent about the mistakes made in the U.S. operations, acknowledging issues related to inventory management, manufacturing, and market strategies.
Since its formation through a merger between Fiat Chrysler and France’s PSA Groupe in 2021, Stellantis has been on a mission to prioritize profits and cost-cutting measures. The company’s sales have been on a downward trajectory since 2018, presenting a contrast to the overall growth in the U.S. new light-duty vehicle sales market. Tavares’ approach has faced criticism from various stakeholders, including the United Auto Workers union and Stellantis’ U.S. franchised dealers.