In a tumultuous period for the automotive industry, Stellantis, the parent company of iconic brands like Jeep and Chrysler, has reported yet another quarter of dismal sales. The company’s U.S. sales figures for the third quarter paint a bleak picture, with a 20% year-over-year decline to 305,294 vehicles sold between June and September. This marks the second consecutive quarter of significant decline, following a 21% drop in the previous quarter. In fact, the last time Stellantis saw a quarterly sales increase was in the second quarter of 2023.
Across its brand portfolio, Stellantis has witnessed a decline in sales volume, with the exception of Fiat, which saw a remarkable 118% surge to 316 units. Dodge and Chrysler bore the brunt of the decline, with sales plummeting by 47% and 43%, respectively. Ram, Alfa Romeo, and Jeep also experienced smaller, yet still notable, declines.
The company’s performance in North America has been marred by a series of setbacks, including massive recalls, dwindling profits, quality control issues, and high-level executive departures. Despite this, Stellantis has managed to increase its market share to 8% from 7.2% in the previous quarter.
In response to the challenges, Stellantis has taken steps to revamp its sales strategy and prepare its dealer network for the arrival of 2025 models. The company has also slashed its full-year guidance for adjusted operating income and expected industrial free cash flow, citing a growing supply of vehicles and a deteriorating global automotive industry.
The struggles at Stellantis have led to intense scrutiny of its leadership, with CEO Carlos Tavares facing criticism from various quarters, including the United Auto Workers (UAW) union and the U.S. Stellantis National Dealer Council. The company has begun searching for a new CEO, although it remains open to extending Tavares’ contract beyond its 2026 expiration date. As the situation continues to unfold, the UAW has planned a rally outside Stellantis’ facility in Sterling Heights, Michigan, to voice its concerns and potentially authorize a strike if the company fails to meet its promises.
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