Stellantis Sales Down 20 Percent in U.S. in Q3

Stellantis increased its rebate programs in the third quarter of the current year, but sales in the U.S. still fell by 20 percent over the summer. The company also warned that its profits for the year would be lower than forecast. Despite the incentives on offer, dealers are saying the company needs to be more aggressive to win back market share.

A growing list of challenges for the manufacturer
The challenges are multiplying for Stellantis: Inventory build-ups, frustrated dealers and the threat of another UAW (United Auto Workers) strike that prompted the automaker to sue the union. The company has seen its share pricing, and it’s almost easy to forget that tax fraud investigation into company chairman John Elkann.

Stellantis recently implemented several waves of job cuts in the United States, and on September 30, the company lowered its annual profit forecasts. However, CEO Carlos Tavares downplayed these difficulties as “minor operational errors”.

 

Inventory reduction: A strategic priority
Stellantis management is looking to reduce its U.S. inventories, which stood at just over 430,000 vehicles at June 30. The goal is to get to 330,000 units by the end of the year. Initially, that threshold was scheduled for the first quarter of 2025. As part of its cost-cutting efforts, Stellantis has adopted a strict approach to external spending, led by CFO Natalie Knight. According to internal documents, she has encouraged her finance team to scrutinize every external purchase request.

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