Stellantis, the trans-Atlantic carmaker, reported a significant decline in U.S. sales during the third quarter of 2024, continuing a downward trend that has been ongoing for years. The company’s sales figures for the quarter showed a 19.8% drop compared to the same period in 2023, with a further 11.5% decrease from the previous quarter of this year. Despite these numbers, Stellantis noted that its efforts to boost sales and address past mistakes are beginning to show results, with a slight increase in market share and a reduction in U.S. vehicle inventory.
All of Stellantis’ brands, with the exception of Fiat, experienced declines in sales during the third quarter, with Chrysler and Dodge seeing reductions of more than 40%. Ram truck sales were down roughly 19%, while Jeep sales fell by about 6% year over year. These numbers reflect a challenging period for the automaker, which is also dealing with a recall of plug-in hybrid electric Jeep models due to fire risks and a lower profit margin forecast for 2024. Stellantis’ stock has taken a hit this year, dropping 41% on the New York Stock Exchange and reaching a new 52-week low.
Stellantis CEO Carlos Tavares has acknowledged mistakes made by himself and the company in its U.S. operations, leading to sales declines, excess inventory, and investor concerns. Tavares identified three main factors contributing to these problems, including slow vehicle inventory depletion, manufacturing issues at certain plants, and an ineffective go-to-market strategy. Despite these challenges, Tavares has been focused on implementing changes to drive sales and profitability, with a particular emphasis on preparing for the arrival of 2025 models.
Since the formation of Stellantis through a merger between Fiat Chrysler and PSA Groupe in 2021, Tavares has been on a mission to prioritize profits and cost-cutting measures. This approach has raised concerns among stakeholders, including the United Auto Workers union and Stellantis’ U.S. franchised dealers, who have criticized his emphasis on profits over market share. The decline in U.S. sales for Stellantis, formerly Fiat Chrysler, has been a consistent trend since 2018, when the company reached a peak of 2.2 million vehicles sold. Last year, Stellantis sold over 1.5 million vehicles, representing a slight decline from the previous year but still falling short of market growth.
Despite the challenges faced by Stellantis in the U.S. market, the company remains committed to addressing its deficiencies and improving its performance. The third-quarter sales decline, along with other recent setbacks, has highlighted the need for strategic changes and a more effective approach to sales and marketing. As the automotive industry continues to evolve and adapt to changing consumer preferences and market dynamics, Stellantis will need to navigate these challenges while pursuing long-term growth and profitability. Tavares and his team are working to implement changes that will help position the company for success in the coming years.
