Stellantis, the trans-Atlantic carmaker, has seen a continued decline in its U.S. new vehicle sales during the third quarter, despite efforts by CEO Carlos Tavares to address past mistakes. Sales dropped by 19.8% from the third quarter of 2023, with a total of 305,294 vehicles sold from July through September. This marks an 11.5% decrease from the previous three months.
Industry experts had predicted that Stellantis would be the worst performer among major automakers in terms of sales during the third quarter. However, the company has managed to increase its market share from 7.2% to 8% and reduce its U.S. vehicle inventory by 11.6%. This indicates that the initiatives taken by Stellantis to boost sales and correct past errors are beginning to show results.
Despite these efforts, all of Stellantis’ brands, except for its niche Fiat unit, experienced sales declines in the third quarter. Chrysler and Dodge saw reductions of over 40%, while Ram truck sales fell by roughly 19% and Jeep sales were down by about 6% year over year.
Stellantis has faced challenges beyond just declining sales, including a recall of popular plug-in hybrid electric Jeep models due to fire risks. The company also recently lowered its 2024 profit margin forecast, leading to a 41% decrease in its stock value on the New York Stock Exchange this year.
Carlos Tavares has acknowledged the mistakes made by himself and the company that have contributed to the sales declines and inventory issues. These mistakes include not selling down vehicle inventory fast enough, manufacturing problems at certain plants, and a lack of sophistication in the company’s go-to-market strategy.
Since the merger between Fiat Chrysler and PSA Groupe in 2021, Tavares has been focused on driving profits and cutting costs. This approach has prioritized profits and vehicle pricing over market share, which has drawn criticism from the United Auto Workers union and Stellantis’ U.S. franchised dealers.
Overall, Stellantis’ performance contrasts with the growth seen in the overall U.S. new light-duty vehicle sales market, which increased by 13% last year. The company has seen sales decline every year since 2018, when it reached a peak of 2.2 million vehicles sold.
Despite the challenges faced by Stellantis, the company remains optimistic about its future prospects and is working on implementing strategies to drive sales and profitability in the coming years.