Stellantis (STLA, Financial), one of the world's largest automakers, reported a significant drop of about 20% in global vehicle shipments for the third quarter. This decline is primarily due to the company's efforts to continually reduce its bloated vehicle inventory. The automaker noted that shipments fell to approximately 1.15 million units, with a substantial 36% decrease in its key North American market. The company also highlighted the impact of new model launches and production adjustments.
The manufacturer of Jeep and Dodge is grappling with challenges such as excessive inventory, key executive departures, and declining U.S. sales. Stellantis had previously raised its prices earlier than competitors. Following a disastrous profit warning last month, CEO Carlos Tavares has adopted a provocative stance, promising performance improvement in North America and replacing several key executives, including the CFO.
In early trading on the Paris stock exchange, Stellantis shares fell by 2.4%, with a year-to-date decline of 44%. According to Stellantis, overall sales in North America dropped by about 170,000 units year-on-year, primarily due to an announced production cut aimed at reducing dealer inventory and product line gaps.
Sales to end customers in the U.S. resulted in Stellantis increasing its market share from 7.2% in July to 8% in September, while vehicle inventory in the country declined by nearly 12% from the previous quarter, indicating that Tavares' inventory reduction strategies are beginning to show results.
Stellantis clarified that these deliveries refer to vehicles shipped to dealers, distributors, or directly to retail or fleet customers. The auto giant owns several globally recognized brands, including Peugeot, Citroën, and Alfa Romeo, in addition to Jeep and Dodge.
