MILAN — Stellantis, the major automotive manufacturer, announced a significant 27% decrease in its net revenues for the third quarter, which led to a decline in global vehicle shipments by 20%. This downturn is primarily due to delays in the introduction of new products and efforts to manage excess inventory.
For the three-month period that ended on September 30, Stellantis reported net revenues of 33 billion euros (close to $36 billion), a steep drop from 45 billion euros for the same timeframe in the previous year. Revenue reductions were observed in almost all areas, with the exception of South America. The most drastic decline occurred in North America, where revenues fell by 42%, leading to earnings of 12.4 billion euros. Meanwhile, Europe experienced a 12% reduction in revenues, totaling 12.5 billion euros.
The company’s shipments fell from 1.5 million vehicles last year to 1.2 million this year, representing a 20% decline in the third quarter. For the first nine months of the year, the total number of vehicles shipped decreased by 13%, down to 4 million from 4.6 million. Stellantis is currently working on 20 new product launches worldwide this year, aiming to revive its sales figures.
Doug Ostermann, the newly appointed chief financial officer of Stellantis, stated that the company was moving ahead of schedule in reducing inventories in North America and expects to meet its targets by the end of November. He noted that the market share in the U.S. rose from 7% in July to 8% in September and is projected to reach 10% this month. Ostermann emphasized the importance of normalizing inventory levels, describing it as essential to realign the business and ensure a robust start in 2025.
Recently promoted to CFO after heading the business operations in China, Ostermann took on the new role as part of a management restructuring that also included new leadership appointments for operations in North America and Europe. These changes came in response to a profit warning for 2024 due to the need for investments to improve U.S. operations amid a broader industry downturn and intensified competition from China.
Additionally, Stellantis, known for brands like Jeep and Ram, is currently facing potential strike actions from the United Auto Workers union in North America and is under scrutiny from Italian lawmakers regarding significant production cuts within its domestic market where brands like Fiat, Maserati, and Alfa Romeo are produced.