Stellantis, the trans-Atlantic carmaker, reported a significant decline in U.S. new vehicle sales during the third quarter of 2023. Despite efforts by CEO Carlos Tavares to address past mistakes, sales dropped by 19.8% year over year. The company’s market share increased to 8%, and inventory was reduced by 11.6%. However, all of Stellantis’ brands except for Fiat experienced sales declines, with Chrysler and Dodge seeing the biggest reductions.
The third-quarter sales decline adds to a challenging year for Stellantis, as the company also cut its 2024 profit margin forecast and faced a recall of popular Jeep models due to fire risks. The company’s stock has dropped 41% this year, hitting a 52-week low. Tavares acknowledged mistakes in the company’s U.S. operations, attributing the issues to slow inventory sales, manufacturing problems, and a lack of sophistication in marketing strategies.
Since its formation through a merger in 2021, Stellantis has been focused on cost-cutting and profitability under Tavares’ leadership. This approach has prioritized profits over market share, leading to criticism from the United Auto Workers union and franchised dealers. Despite the company’s challenges, Tavares remains committed to driving sales and preparing for the launch of 2025 models.
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