Stellantis Reports Decline in U.S. Vehicle Sales Despite CEO’s Efforts
Stellantis, the Transatlantic carmaker, reported a significant decline in U.S. vehicle sales during the third quarter of 2024, despite CEO Carlos Tavares’ efforts to address previous mistakes made by the company. This news comes as a blow to the automaker, which has been facing challenges in the U.S. market.
According to data released by the company, U.S. sales for Stellantis totaled 305,294 vehicles from July through September, marking a 19.8% decrease from the same period in 2023. This disappointing performance was also reflected in a decline of 11.5% when compared to the previous three months of this year.
Industry forecasters had already anticipated Stellantis to be one of the worst-performing major automakers in terms of sales during the third quarter. Both Cox Automotive and Edmunds predicted a decline in sales, with Cox Automotive forecasting a decrease of around 21%.
In addition to the sales decline, Stellantis also recently cut its profit margin forecast for 2024 and issued a recall for popular plug-in hybrid electric Jeep models due to fire risks. These issues have compounded the company’s financial challenges, as it strives to recover from its underwhelming first half results.
Stellantis has been plagued by a series of setbacks, including manufacturing issues and a lack of efficiency in market strategies. Despite the CEO’s efforts to address these issues, the company’s U.S. sales have been on a downward trajectory since 2018.
Investors have also shown concern about Stellantis’ performance, as the company’s stock on the New York Stock Exchange has plummeted by 41% this year. During a recent investor event, Tavares acknowledged the mistakes made by the company and outlined plans to rectify them, emphasizing the need to prioritize profitability and operational efficiency over market share.
As a leader in the automotive industry, Stellantis faces the challenge of revitalizing its sales performance and restoring investor confidence. Stay tuned to Extreme Investor Network for the latest updates on Stellantis and other major players in the business world.