Stellantis Posts 27% Slump in Q3 Sales; Notes Inventory Cut Progress

Stellantis (STLA) on Thursday reported a 27% drop in third-quarter revenue, but also pointed to progress in reducing the buildup of excess inventory in the U.S. that has plagued the Big Three automakers.

“Although Q3 2024 performance is below our potential, I am pleased with the progress we have made in addressing operational issues, particularly US inventories, which have been significantly reduced and are on track to meet year-end targets, as well as stabilizing US market share.” Chief Financial Officer (CFO) Doug Osterman said in a statement.

company, The company, which includes brands such as Jeep and Chrysler, said third-quarter net revenue was 33 billion euros ($35.8 billion) and it was on track to deliver about 20 new models this year.

The third-quarter sales decline comes just weeks after the earnings warning

The figures come just weeks after the carmaker issued a profit warning, citing “deteriorating global industry dynamics” and competition from Chinese rivals. It also said two weeks ago that high dealer inventory levels contributed to a 36% decline in North American shipments.

It said third-quarter net revenues declined during the “transitional period of product refreshes and inventory reductions” and attributed the decline to “decreased shipments and unfavorable mix, as well as pricing and foreign exchange impacts.”

Stellantis shares rose 3.5% in pre-market trading, but have lost 43% of their value since the beginning of the year.