Stellantis Q3 shipments to drop as company corrects course

The automaker is looking to prove it can recover the heavy losses it suffered in the first half of 2024. (2 min. read)

Author

Colin Velez
October 16, 2024

Stellantis’ U.S. shipments fell sharply in the third quarter according to company estimates published Wednesday, as the automaker looks to restore confidence in its lineup of brands.

Driving the news: A decline in shipments was expected. The company has previously said it would reduce deliveries to North America in an effort to lower dealer inventory across its brands, which remains well above the average days’ supply.

  • Stellantis estimated it had shipped 171,000 fewer vehicles to the U.S. in Q3, down 36% year-over-year. The company attributed more than half of the decline to planned production cuts as it prepares to deliver new models to retailers.

  • The automaker previously reported that sales in the U.S. had dipped 20% in Q3, prompting it to cut its 2024 profit outlook from a positive cash flow to a negative. Detailed shipment data will be released at the end of October.

  • Globally, Stellantis shipments dropped an estimated 20% to 1.15 million units, a decline of roughly 280,000 units.

Zooming in: The automaker is looking to prove it can recover the heavy losses it suffered in the first half of 2024, during which profits dropped nearly 50% year-over-year. While lower shipments are an admittance of reduced demand, a cut was desperately needed. Stellantis dealers, many of whom are currently swamped with aging inventory, need to make room for new model-year vehicles.

Looking ahead: While lower inventory will help Stellantis dealers, the brand is implementing additional measures to prove it is taking its challenges seriously.

  • Following warnings from CEO Carlos Tavares earlier this year, the company revealed that its portfolio of brands, including Dodge, Chrysler, Jeep and Ram, only have enough funding for the next two years.

  • While strategic plans are in place through 2031, Tavares confirmed that a review, set for 2026, will determine which subsidiaries continue to receive support.

  • Tavares himself will also part ways with the company once his contract runs out in 2026. The Stellantis chief has come under fire from shareholders and dealers, who have blamed him for the sharp decline in profits and sales.

Bottom line: The flurry of activity from Stellantis these last few weeks suggests the brand has finally woken up to the dangers facing its business. With Q3 earnings set to be released in the coming weeks, more course corrections are likely down the line.

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