Stellantis Q3 revenue slumps as it cuts dealer inventories

Stellantis posted a 27% revenue drop in Q3, citing shipment declines, pricing challenges, and a vehicle mix out of sync with demand. 

Driving the news:

• Stellantis reported €33 billion ($35.8 billion) in Q3 revenue, missing analyst expectations of €36.6 billion.

• U.S. dealer inventories were reduced by 80,000 units this quarter, with Stellantis aiming to hit a 100,000-unit cut by November’s end to ease dealer frustrations over excessive stock.

Why it Matters: High prices and limited affordable models are keeping Stellantis vehicles on dealer lots longer than competitors’, with new car days’ supply averaging much higher than the overall industry. Leading dealers to rely on steeper discounts and incentives to move stock, which is eating into profits.

Meanwhile, the United Auto Workers (UAW) union is pressing Stellantis to protect job security, complicating the automaker’s efforts to realign production to current demand.

What’s Happening:

• In September, Stellantis’ Dealer Council issued a rare public letter to CEO Carlos Tavares, accusing the company of “reckless short-term decision-making” that it says has eroded customer loyalty to brands like Jeep and Dodge.

• To adjust for slowing demand, Stellantis paused production and issued temporary layoffs this week at Detroit-area plants producing popular models like the Grand Cherokee, Durango, Wrangler, and Gladiator, impacting nearly 1,200 workers.

• The UAW argues these cuts destabilize job security, with union reps calling for a firmer commitment from Stellantis on long-term investment and job stability in the U.S., or face strikes.

Big picture: Stellantis' North American problems run deeper than its Q3 numbers. Dealers facing thin profits want better pricing and product mix. And the UAW is pressing Stellantis to keep its promises, adding to automaker’s already constrained situation.

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