Isha Sharma
Stellantis, the trans-Atlantic carmaker, reported a significant 19.8% decline in U.S. vehicle sales during the third quarter of 2024, continuing its ongoing struggle to recover from previous missteps. The company sold 305,294 units between July and September, a decrease from both the same period in 2023 and the previous quarter of this year.
Reasons for Sales Decline
The decline in sales can be attributed to a combination of factors, including the company’s failure to reduce its vehicle inventories at an appropriate pace, manufacturing problems at two key plants, and a lack of sophistication in its U.S. marketing strategies.
These issues have led to a negative response from investors and criticism from the United Auto Workers union.
Though Stellantis has launched initiatives to rectify these mistakes, including reducing inventory levels by 11.6% and increasing its market share from 7.2% to 8%, the automaker continues to face significant challenges.
Major brands such as Chrysler and Dodge experienced more than 40% declines in sales, while the Ram and Jeep brands also saw substantial decreases.
Company’s Plan for Recovery
Stellantis remains optimistic about the future, with U.S. retail sales head Matt Thompson stating that the company is preparing its dealer network and consumers for the 2025 model lineup.
Tavares has placed a strong emphasis on prioritising profits over market share, which has sparked criticism but is part of the company’s long-term strategy to become more financially stable.
While Stellantis’ performance contrasts with the overall U.S. auto market, which saw a 13% increase in new vehicle sales last year, the company is hopeful that its new measures will help reverse the current trend and restore investor confidence.
GIPHY App Key not set. Please check settings