Stellantis Posts 27% Slump in Q3 Sales; Notes Inventory Cut Progress

Stellantis (STLA) on Thursday reported a 27% plunge in third-quarter revenue but also noted progress in running down the excess inventory buildup in the U.S. that has plagued the Big Three automaker.

“While Q3 2024 performance is below our potential, I’m pleased with our progress addressing operational issues, in particular U.S. inventories, which have been reduced meaningfully and are on track for year-end targets, as well as stabilization of U.S. market share,” Chief Financial Officer (CFO) Doug Ostermann said in a statement.

The company, which is home to such brands as Jeep and Chrysler, said that third-quarter net revenues were 33 billion euros ($35.8 billion) and that it was on track to deliver around 20 new models this year.

Q3 Sales Drop Comes Just Weeks After Profit Warning

The figures come just weeks after the automaker issued a profit warning, citing “deterioration in global industry dynamics” and competition from Chinese rivals. It had also said a couple of weeks ago that high dealer inventory levels had contributed to a 36% decline in North American shipments.

It said the third-quarter net revenues had fallen during a “transitional period of product upgrades and inventory reduction” and attributed the drop to “lower shipments and unfavorable mix, as well as pricing and foreign exchange impacts.”

Stellantis shares are rising 3.5% in premarket trading but have lost 43% of their value since the start of the year.