Stellantis NV reported a significant decline in US auto sales for the third quarter of 2024, with sales totaling 305,294 vehicles from July to September—a drop of 19.8% compared to the same period last year.
This decline has solidified Stellantis’s position as the weakest performer among major automakers during this period, as industry forecasts predicted a decline of around 21%.
The carmaker’s sales slump comes amid broader industry trends, with Cox Automotive and Edmunds projecting a 2% decrease in overall US new vehicle sales for the quarter. Despite this bleak landscape, Stellantis has reported a slight increase in market share, rising from 7.2% in July to 8% in September, along with an 11.6% reduction in its vehicle inventory.
“We continue to take the necessary actions to drive sales and prepare our dealer network and consumers for the arrival of 2025 models,” said Matt Thompson, Stellantis head of US retail sales.
Stellantis’ sales decline was widespread, affecting nearly all its brands except for its niche Fiat unit, which saw a 118% increase in sales, although it represented a small total volume of just 316 vehicles. Notably, Chrysler and Dodge brands experienced over 40% reductions, while the Ram truck brand saw a roughly 19% drop, and Jeep sales declined by about 6%.
This drop in sales is compounded by other recent challenges for Stellantis, including a reduction in its 2024 profit margin forecast and a recall involving popular plug-in hybrid Jeep models due to fire risks. Shares of the company have decreased by 41% this year, hitting a 52-week low of $13.71 on Tuesday.
CEO Carlos Tavares has attributed the ongoing sales decline to several “arrogant” mistakes made by the company. During a recent investor event, he identified three key factors contributing to the company’s struggles: inadequate inventory management, manufacturing issues at unnamed plants, and a lack of sophistication in market strategy.
Stellantis has experienced a downturn in US sales since peaking at 2.2 million vehicles in 2018. In 2023, the company sold over 1.5 million vehicles, reflecting a decline from previous years. This performance starkly contrasts the overall US light-duty vehicle market, which saw a 13% increase in sales last year.
The company’s challenges have not gone unnoticed by its dealer network, which has expressed frustration over the high prices of vehicles that do not align with consumer demand. Stellantis has been under pressure to enhance its incentive programs and production strategies to revitalize sales.
Despite the challenges, Stellantis has highlighted that several of its electrified models continue to perform well in the market. The Jeep Wrangler 4xe, Grand Cherokee 4xe, Dodge Hornet R/T, and Chrysler Pacifica Hybrid rank among the top-selling plug-in hybrids in the US.
With input from CNBC, Bloomberg, and the Detroit News.
