Stellantis U.S. auto sales extend free fall into third quarter

DETROIT — StellantisNew vehicle sales in the United States continued their year-long free fall in the third quarter, despite attempts by CEO Carlos Tavares to correct what he called “arrogant” mistakes.

The transatlantic automaker on Wednesday reported U.S. sales of 305,294 from July to September, down 19.8% from the third quarter of 2023 and down 11.5% from the previous three months of This year.

Stellantis is expected to be the worst sales producer of the major automakers during the third quarter. Auto industry forecaster Cox Automotive predicted the automaker’s sales would decline by about 21 percent.

Cox and fellow forecaster Edmunds expect the sector’s third-quarter sales to be down about 2% from a year earlier.

Still, Stellantis said its initiatives to boost sales and correct past mistakes are starting to pay off. The automaker cited an increase in market share during the third quarter, from 7.2% to 8%, as well as an 11.6% reduction in its U.S. vehicle inventory.

“We continue to take the necessary steps to drive sales and prepare our dealer network and consumers for the arrival of the 2025 models,” said Matt Thompson, head of Stellantis U.S. retail sales. said in a press release.

All Stellantis brands except its niche unit Fiat saw sales declines in the third quarter, led by reductions of more than 40% for Chrysler and Dodge. Its Ram truck brand saw a decline of about 19%, while Jeep saw a decline of about 6% year-over-year.

Stellantis’ third-quarter sales are the latest problem this week for the automaker, which cut its profit margin forecast for 2024 and was hit by a recall of popular plug-in hybrid electric Jeep models due to fire risks.

The company’s shares on the New York Stock Exchange have fallen 41% this year. The stock hit a new 52-week low on Tuesday and closed at $13.71, down 2.4% for the day.

At an investor event in June, Tavares said the company would correct “arrogant” mistakes he and the company made in the automaker’s U.S. operations, which led to a decline sales, bloated inventories and investor concerns.

He said a convergence of three factors was causing the problems: not clearing vehicle stocks quickly enough; manufacturing problems, particularly with two unnamed factories; and a lack of “sophistication in how to access the market”.

U.S. sales of Stellantis, formerly Fiat Chrysler, have declined every year since a recent peak of 2.2 million in 2018. The company sold more than 1.5 million vehicles last year, a drop of about 1 % compared to 2022, where it had reported a significant drop of 13%. % compared to the previous year.

Stellantis’ performance compares to the overall market for new light vehicle sales in the United States, which grew 13% last year, according to federal data.

Tavares has been on a mission to reduce costs and profits since the company was created through the merger between Fiat Chrysler and French group PSA in January 2021.

He prioritized profits and vehicle prices over market share, drawing sharp criticism from the United Auto Workers union and Stellantis’ U.S. franchise dealers.

Correction: Stellantis announced its US sales on Wednesday. An earlier version had incorrectly stated the day.