Stellantis US auto sales extend freefall in third quarter

detroit – Stellantis U.S. new car sales continued a yearlong freefall in the third quarter, despite CEO Carlos Tavares' efforts to correct what he called an “arrogant” mistake.

The transatlantic automaker reported 305,294 sales in the U.S. on Tuesday from July to September, a 19.8% decline from the third quarter of 2023 and an 11.5% decline from the previous three months this year.

Stellantis was expected to be the worst sales performer among major automakers in the third quarter. Auto industry forecaster Cox Automotive had projected a sales decline of about 21% for the automaker.

Cox and fellow forecaster Edmonds expect third-quarter sales industrywide to be about 2% lower than a year ago.

Still, Stellantis says its initiatives to boost sales and correct past mistakes are starting to pay off. The automaker reported an 11.6% drop in U.S. vehicle inventory alongside a market share increase of 7.2% to 8% in the third quarter.

“We continue to take the necessary measures to drive sales and prepare our dealer network and consumers for the arrival of the 2025 model,” Stellantis head of US retail sales, Matt Thompson, said in a statement.

All of Stellantis' brands saw sales declines in the third quarter except the specialty Fiat unit, led by more than 40% declines at Chrysler and Dodge. Its Ram truck brand recorded a nearly 19% decline, while Jeep was off nearly 6% year over year.

Stellantis' third-quarter sales are the latest problems this week for the automaker, which has cut its 2024 profit margin forecast and recalled popular plug-in hybrid electric Jeep models due to fire risks.

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

During an investor event in June, Tavares said the company would correct “arrogant” mistakes made by himself and the company at the automaker's U.S. operations that led to declining sales, bloated inventory and investor concerns.

He said a combination of three factors caused the problem: car inventory not selling quickly enough; production problems, particularly with two unnamed plants; and “a lack of sophistication in the path to market.”

U.S. sales for the Stellar, formerly Fiat Chrysler, have declined year over year from a recent peak of 2.2 million in 2018. The company sold more than 1.5 million vehicles last year, a decrease of about 1% from 2022, while it has a significant decrease of 13% compared to the previous year.

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

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

He prioritized profit and vehicle pricing over market share, drawing widespread criticism from the United Auto Workers union and Stellantis' US franchised dealers.