**Auto Giant Struggles to Reverse Sales Slump**
Stellantis, the transatlantic automaker, reported a dismal third quarter in the US market, with sales plummeting 19.8% compared to the same period last year. The company’s total sales for the quarter stood at 305,294, a significant decline from the previous year’s 380,000 units.
Industry experts had predicted a sales drop of around 21% for Stellantis, making it the worst performer among major automakers during the third quarter. The company’s struggles are attributed to its “arrogant” mistakes, as termed by CEO Carlos Tavares, which have led to sales declines, bloated inventories, and investor concerns.
Stellantis’ initiatives to correct these mistakes are slowly paying off, with the company reporting a market share increase from 7.2% to 8% during the third quarter. Additionally, the automaker has managed to reduce its US vehicle inventory by 11.6%.
However, the company’s brands, except for Fiat, experienced sales declines, with Chrysler and Dodge witnessing a drastic 40% reduction. Ram truck brand sales dropped by 19%, while Jeep sales fell by 6% year over year.
The struggling automaker has cut its 2024 profit margin forecast and is facing a recall involving popular plug-in hybrid electric Jeep models due to fire risks. Shares of the company have plummeted 41% this year, hitting a new 52-week low.
CEO Carlos Tavares has acknowledged the company’s mistakes, citing three key factors: failure to sell down vehicle inventory fast enough, manufacturing issues, and a lack of sophistication in marketing strategies. Stellantis’ US sales have been declining every year since 2018, with the company selling over 1.5 million vehicles last year, a 1% decline from 2022.
The automaker’s performance is in stark contrast to the overall US new light-duty vehicle sales market, which increased 13% last year. Tavares has been focused on prioritizing profits and vehicle pricing over market share, leading to criticism from the United Auto Workers union and Stellantis’ US franchised dealers.
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