Stellantis’ US Sales Plunge in Sign of Deepening Strains
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Stellantis NV’s U.S. sales plunged 20% last quarter — the fifth consecutive decline — as the beleaguered automaker struggled to tame bloated inventories amid high interest rates and softening consumer demand.
Deliveries fell to 305,294 in the three months ending in September, the lowest level since the company was formed from the 2021 merger of Fiat Chrysler and France’s PSA Group. Sales declined at five of its six brands, including a 6% slide at Jeep and 19% drop in the Ram truck division.
The results underscore the deep strains on Stellantis’ business, particularly in North America, as it grapples with waning demand, stock declines and unrest among numerous stakeholders. CEO Carlos Tavares is facing an open rebellion among his U.S. dealer network, who have accused him of causing the “rapid degradation” of prized brands. They’ve complained that the company isn’t spending enough on incentives to move aging, pricey vehicles stuck on their lots because it’s trying to protect profits.
Stellantis managed to whittle down inventory by 50,000 units in the third quarter, thanks to a new incentive push, Matt Thompson, head of U.S. retail sales, said in a statement.
Tavares
“These cross-brand incentives, which will continue through the end of the year, also helped to deliver consecutive-month total share growth in Q3 from 7.2% in July to 8% in September,” he said in the statement. “We continue to take the necessary actions to drive sales and prepare our dealer network and consumers for the arrival of 2025 models.”
Tavares has been focused on trying to fix Stellantis’ performance in its core U.S. market, where Jeep SUVs and Ram pickup trucks have long delivered hefty profits for the global automaker. Falling sales in the U.S. are at the heart of the company’s financial struggles: It slashed its annual earnings forecast on Sept. 30. The carmaker will also burn cash instead of generating it this year. The disclosure came little more than a month after Stellantis reported that net income plunged by almost half in the first half of 2024.
Stellantis’ U.S. market share likely fell to 8.3% this year through September, down from 9.8% a year ago. That dropped it to sixth place in the ranking of new-car sales volumes, behind Hyundai and Honda, according to researcher Cox Automotive.
During the third quarter, sales of every Jeep model fell except the entry-level Compass and the premium Wagoneer.
All six of Stellantis’ U.S. brands had inventory levels above the industry average of 77 days at the end of August, according to Cox. The Ram truck brand was at least double the average, Dodge, known for its powerful muscle cars, had 149 days’ inventory, and the prized Jeep SUV brand had 122 days of supply.
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Under Tavares, Jeep raised prices more than its peers during the pandemic, when supply shortages led to price hikes across the auto industry. At the same time, he didn’t invest in a steady cadence of fresh product, leaving holes in key segments just as competition intensified. He’s now slated to bring a crop of new electric vehicles to market just as sales are slowing and consumers opt for hybrid vehicles.
Tavares is now taking steps to clear swelling inventories, cutting prices, increasing incentives and reintroducing more affordable models, like the entry-level Chrysler Voyager minivan. He’s also cutting jobs in the U.S. and Europe and slashing capacity at American factories to offset declining sales.
