Stellantis’s predicted “challenges” for the third quarter of 2024 are revealed as it sees its revenues drop 27% owing to reduced shipments of product and price-cutting in the U.S.
Nonetheless, market watchers say the automaker’s figures are slightly better than had been expected following its warning of reduced revenues announced earlier in October.
Stellantis claims success in reducing its overstocked inventory of vehicles that has forced it to slash retail prices and is on course to lower unsold car numbers by its target of 100,000 by the end of November.
Stellantis says total inventory stood at 1.33 million units at the end of September, down 129,000 year-on-year. In the U.S., total inventory at dealers fell by over 80,000 between the end of June and Oct. 30.
The automaker’s overproduction at the end of last year is exacerbated by broader challenges facing legacy automakers, including a slowdown in demand for battery-electric vehicles and increased competition from Chinese automakers accused of dumping their BEVs on European markets at discounted prices.
Doug Ostermann, Stellantis chief financial officer, says: “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.
“In Europe, stringent quality requirements delayed the start of certain high-volume products, but with progress in resolving challenges we will soon benefit from the significantly expanded reach our generational new-product wave brings to 2025 and beyond.”
