Stellantis reports 27% plunge in 3Q revenues as it cleans up U.S. inventories
Troubled carmaker Stellantis on Thursday reported a 27% plunge in net revenues during the third quarter as gaps in launching new products and action to reduce inventories slashed global shipments of new vehicles by 20%.
The world's fourth-largest carmaker, created by the 2021 merger of PSA Peugeot and Fiat Chrysler Automobiles, reported net revenues of 33 billion euros (nearly $36 billion ) in the three-month period ending Sept. 30, down from 45 billion euros in the same period a year earlier.
All regions except South America reported double-digit dips in revenues, led by North America, which plunged 42% to 12.4 billion euros. Europe revenues dropped 12% to 12.5 billion euros.
Shipments dropped by 20% to 1.2 million vehicles in the third quarter from 1.5 million a year earlier. In the first nine months, shipments sank 13% to 4 million, from 4.6 million. The company is in the process of 20 new product launches globally this year.
Stellantis's new chief financial officer Doug Ostermann said the carmaker was ahead of schedule on reducing inventories in North America and reaching its targets by the end of November. The U.S. market share rose from 7% in July to 8% in September, and was on track to hit 10% this month, he said.
"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," he said. "In Europe, stringent quality requirements delayed the start of certain high-volume products, but with progress resolving challenges we will soon benefit from the significantly expanded reach our generational new product wave brings to 2025 and beyond."
Ostermann, who was in charge of Stellantis' business in China for the last 2½ years, assumed the role of CFO this month as part of a management shakeup that included new heads of operations in North America and Europe. The moves came after the carmaker issued a profit warning for 2024, citing investments to turn around its U.S. operations amid a wider industry slump and increased Chinese competition.
The maker of Jeep and Ram vehicles is facing the threat of a strike by the United Auto Workers union in North America and is under pressure from Italian lawmakers over steep production cuts in the home country of Stellantis brands Fiat, Maserati and Alfa Romeo.
