Stellantis Group, has just at this time experienced a significant drop in deliveries in the third quarter of 2024. The contraction we are talking about is 20 percent, if we take the same period last year as a reference. The problems that caused this event are various, one of the main ones being the excess inventories of the U.S. manufacturers
The issue in the United States
The North American market has been particularly hard hit by this sharp decline, which amounts to 36 percent fewer deliveries. The reduction in question stems mainly from the fact that a strategic decision was made by the company aimed at decreasing the various surpluses in American dealers. They, themselves, had been complaining for some time about the particularly difficult situation to manage – with the difficulty in selling Stellantis cars due to the uncompetitiveness of the product range.
Even though the problems are very pronounced, Stellantis still wanted to try several strategies to revive U.S. sales by increasing offers to customers and intensifying efforts to reduce inventories. Among other things, the company has also announced the launch of new generations of vehicles such as the Dodge Charger Daytona and the Jeep Wagoneer S, which should help lift the situation.
Let us also point out that, in September, the company had already cut its forecast for cash profitability, precisely because of the many problems that are affecting the U.S. market. In fact, the major management changes we have been talking about for several days now have been implemented precisely to try to cope with the current difficult and competitive automotive market.
Stellantis global picture remains complex
As anticipated elsewhere – and according to today’s official Stellantis press release – the problem is not only in the United States, but there are also markets in the same situation. In Europe, for example, sales have generally dropped by 17 percent, which can be attributed mainly to the delayed production of new models. Despite this, Stellantis for Europe nevertheless remains positive, as launch plans for new models are still solid, particularly for brands such as Citroen and Peugeot. Also for the European continent, Stellantis appears not to be the only manufacturer struggling, as rivals such as Volkswagen and BMW are also in a very similar condition, attributing the situation to increasingly strong Chinese competition. The Asia-Pacific region is also experiencing rather pronounced problems, with an overall decline of 30 percent.
In short, the problems for Stellantis are really numerous at the moment, but despite this, the company definitely wants to remain optimistic for everyone’s future. In fact, new plans are about to be launched for new car models, optimization of manufacturers’ production, and increased price competitiveness. Obviously, however, all these proposed changes and vouchers will have to be implemented in a very tight timeframe to make sure that even the major manufacturers do not collapse permanently, making them able to face the competition with the right means. Finally, it should also be pointed out that the company has stated that the data on shipments are preliminary and may be subject to change, so only in the coming weeks will we really know what kind of turnaround will come for the most struggling dealers.