- Stellantis sold just under 1.15 million vehicles in the July-September period, reflecting a significant decline.
- North American sales for Stellantis fell sharply by 36%, dropping from 470,000 units to 299,000 units.
- Despite declining sales and revenue, Stellantis finds relief in successfully reducing U.S. dealer inventories this quarter.
Things are not going well for Stellantis. Not only is the carmaker undergoing management changes and dealing with significant pressure from the United Auto Workers (UAW) union, but both its sales and revenues are slipping, not just in the US, but around the world.
Stellantis has revealed that during the third quarter, its sales of new vehicles fell 20% compared to Q3 last year, dropping from around 1,427,000 vehicles to just 1,148,000. Things were particularly bad in North America, as sales there dropped by 36% from 470,000 units to 299,000 units. Sizeable falls were also noted in Europe, where sales dropped 17% to 496,000, Middle East & Africa, where they were down 26% to 78,000, and in China, India & Asia Pacific where 30% fewer new cars were sold, down from 20,000 in Q3 2023 to just 14,000.
Read: Stellantis Could Cut ICE Production And Raise Prices To Meet EU Emissions Targets
Interestingly, sales rose 14% in South America last quarter to 259,000 units, offsetting the declines in the Middle East & Africa, as well as China, India & Asia Pacific.
According to the head of investor relations at Stellantis, Ed Ditmire, shipments in North America declined by approximately 170,000 units as the firm cut production of several models in a bid to “aggressively lower dealer inventories.” He added that dealer inventories were reduced by approximately 50,000 units in the third quarter, and they are hoping to reach their goal of 100,000 units by the end of November. Additionally, he noted the company has several temporary gaps in its portfolio, such as the Dodge Challenger and Charger, which were axed last year, and gaps in the small and mid-size segments from Jeep.
The company also posted a 27% decline in third-quarter net revenues. During the July-September period, net revenues equaled €33 billion ($35.8 billion), falling short of the €36.6 billion estimate of many analysts. Listed shares of Stellantis in Italy have lost more than 40% of their value this year, showing that the market is losing faith in the firm.
Despite the challenges, Stellantis is optimistic that its several new models will help boost its sales. For example, it says the new Peugeot 3008 is off to a strong start with approximately 75,000 confirmed orders. It also has 50,000 orders for the new Citroen C3 and 25,000 additional orders for the electric e-C3. Alfa Romeo’s new entry-level Junior SUV has also locked in more than 10,000 orders, and deliveries of the Leapmotor T03 and C10 have both started in Europe.
