3.9 C
New York
Thursday, November 14, 2024
pCloud Premium

Stellantis U.S. auto sales extend free fall in third quarter



240603 Jeep Wrangler plug in hybrid se 255p e1c574

DETROIT — Stellantis’ U.S. new vehicle sales continued a yearslong free fall during the third quarter, despite CEO Carlos Tavares’ attempts to correct what he has called “arrogant” mistakes.

The trans-Atlantic carmaker reported U.S. sales Wednesday of 305,294 from July through September, a 19.8% decline from the third quarter of 2023 and an 11.5% decrease from the prior three months of this year.

Stellantis was expected to be the worst sales performer of major automakers during the third quarter. Auto industry forecaster Cox Automotive had projected a sales decline of roughly 21% for the carmaker.

Cox and fellow forecaster Edmunds expect third-quarter sales industrywide will be down roughly 2% compared with a year earlier.

Still, Stellantis said its initiatives to boost sales and correct past mistakes are starting to pay off. The automaker cited a market share increase during the third quarter from 7.2% to 8% as well as an 11.6% reduction in its U.S. vehicle inventory.

“We continue to take the necessary actions to drive sales and prepare our dealer network and consumers for the arrival of 2025 models,” Matt Thompson, Stellantis head of U.S. retail sales, said in a release.

All of Stellantis’ brands except for its niche Fiat unit experienced sales declines in the third quarter, led by more than 40% reductions for Chrysler and Dodge. Its Ram truck brand recorded a roughly 19% fall, while Jeep was off about 6% year over year.

Stellantis’ third-quarter sales are the latest problem this week for the carmaker, which cut its 2024 profit margin forecast and has been hit with a recall involving popular plug-in hybrid electric Jeep models due to fire risks.

Shares of the company on the New York Stock Exchange are off 41% this year. The stock hit a new 52-week low Tuesday and closed at $13.71, falling 2.4% for the day.

During a June investor event, Tavares said the company would correct “arrogant” mistakes made by himself and the company in the automaker’s U.S. operations that led to sales declines, bloated inventories and investor concerns.

He said the convergence of three factors led to the problems: not selling down vehicle inventory fast enough; manufacturing issues, specifically with two unnamed plants; and a lack of “sophistication in the way to go to market.”

U.S. sales for Stellantis, formerly Fiat Chrysler, have declined every year since a recent peak of 2.2 million in 2018. The company sold more than 1.5 million vehicles last year, a roughly 1% decline from 2022, when it reported a significant drop of 13% compared with the previous year.

Stellantis’ performance compares with the overall U.S. new light-duty vehicle sales market, which increased 13% last year, according to federal data.

Tavares has been on a profit-driven, cost-cutting mission since the company was formed through a merger between Fiat Chrysler and France’s PSA Groupe in January 2021.

He has prioritized profits and vehicle pricing over market share, leading to heavy criticism from the United Auto Workers union and Stellantis’ U.S. franchised dealers.



Source link

Odisha Expo
Odisha Expohttps://www.odishaexpo.com
Odisha Expo is one of the Largest News Aggregator of Odisha, Stay Updated about the latest news with Odisha Expo from around the world. Stay hooked for more updates.

Related Articles

Stay Connected

0FansLike
0FollowersFollow
0SubscribersSubscribe
Best Lifetime Deals on SaaSspot_img

Latest Articles

Moanco agrees extension to host Formula 1 until at least 2031

0
Ferrari’s Charles Leclerc won the 2024 Monaco race, becoming the first Monegasque driver since 1931 to win their home grand prix.In 2022, Leclerc...

Paris ramps up security after Amsterdam violence

0
PARIS — Thousands of police officers are set to be deployed around Paris on Thursday ahead of a soccer game between France and...

Whoopi Goldberg launches channel exclusively dedicated to women’s sports – Culture

0
Actor Whoopi Goldberg has launched the world’s first global sports channel dedicated exclusively to broadcasting women’s sports! During an appearance on The Tonight Show...

Baby red panda dies from fireworks noise stress, Edinburgh zoo says

0
LONDON — Animal campaigners are calling for a ban on the public sale of fireworks after a baby red panda was thought to...

Real Madrid Defender Poised for Liverpool Test After Injury Setback

0
Lucas Vazquez expected to return for Real Madrid in the upcoming match against Liverpool. Reports say his recovery has been quick, and he...