Jeep vehicles were delivered to a dealership on June 20, 2024, in Chicago, Illinois. (Scott Olson | Getty Images)
DETROIT — Stellantis’ U.S. new vehicle sales in the third quarter continued a prolonged decline despite CEO Carlos Tavares’ efforts to address what he has termed “arrogant” mistakes made by the company.
The transatlantic car manufacturer reported U.S. sales of 305,294 units from July through September, representing a 19.8% drop from the third quarter of 2023 and an 11.5% decrease from the previous three months of this year.
Stellantis was anticipated to perform the worst among major automakers during the third quarter, with auto industry forecaster Cox Automotive projecting a sales decline of around 21%. Both Cox and another forecaster, Edmunds, predict that third-quarter sales industrywide will decrease by approximately 2% compared to the same period last year.
The company’s disappointing sales figures are the latest in a series of issues for Stellantis, which recently lowered its 2024 profit margin forecast and has been affected by a recall involving popular plug-in hybrid electric Jeep models due to fire risks.
These recent problems compound the financial challenges the automaker faced in the first half of the year in the U.S. market.
Shares of Stellantis on the New York Stock Exchange have declined by 41% this year. The stock reached a new 52-week low on Tuesday and closed at $13.71, a 2.4% decrease for the day.
During an investor event in June, Tavares indicated that the company would rectify “arrogant” errors made within its U.S. operations that contributed to sales declines, excessive inventories, and investor concerns. He attributed the problems to three primary factors: not reducing vehicle inventory rapidly enough, manufacturing issues at two unspecified plants, and a lack of sophistication in market strategies.
Stellantis, formerly known as Fiat Chrysler, has experienced a yearly decline in U.S. sales since reaching a peak of 2.2 million units in 2018. The company sold over 1.5 million vehicles last year, a roughly 1% decline from 2022, which itself was a significant drop of 13% compared to the previous year.
This performance contrasts with the overall U.S. new light-duty vehicle sales market, which saw a 13% increase last year according to federal data.
Since the merger between Fiat Chrysler and France’s PSA Groupe in January 2021, Tavares has led a profit-driven, cost-cutting strategy. He has prioritized profits and vehicle pricing over market share, which has garnered heavy criticism from the United Auto Workers union and Stellantis’ U.S. franchised dealers.
