Stellantis, the world’s fourth-largest car manufacturer, has reported a significant 27% decline in net revenues for the third quarter of 2023, attributing the downturn to delays in new product launches and proactive measures to reduce inventory levels. This decrease has resulted in a 20% drop in global shipments of new vehicles.
The automaker, formed from the 2021 merger of PSA Peugeot and Fiat Chrysler Automobiles, recorded net revenues of €33 billion (approximately $36 billion) for the three-month period ending September 30, down from €45 billion during the same quarter last year.
The company experienced double-digit revenue declines across all regions except South America, with North America witnessing the steepest drop of 42%, bringing revenues down to €12.4 billion. In Europe, revenues fell by 12%, totaling €12.5 billion.
Vehicle shipments in the third quarter decreased to 1.2 million units, a drop from 1.5 million in the prior year. Over the first nine months of the year, shipments declined by 13%, totaling 4 million vehicles compared to 4.6 million during the same period last year. Stellantis is working on launching 20 new products globally this year.
New Chief Financial Officer Doug Ostermann indicated that the company was making progress in reducing its inventory in North America, with expectations to meet targets by the end of November. He noted a rise in U.S. market share from 7% in July to 8% in September, with a target of reaching 10% by the end of October.
“The normalization of our inventory is crucial, just fundamental, to where we need to be to bring the business back into alignment and ensure we have a strong start to 2025,” Ostermann stated during a recent conference call.
Ostermann, who previously oversaw Stellantis’ operations in China for two and a half years, stepped into the CFO role this month amid a management reshuffle that also saw new leaders appointed for operations in North America and Europe. These changes follow the company’s warning of reduced profits for 2024, primarily due to the need for investments aimed at revitalizing its U.S. operations in the face of a broader industry downturn and growing competition from Chinese manufacturers.
Stellantis, known for brands such as Jeep and Ram, is also contending with potential strikes by the United Auto Workers union in North America and scrutiny from Italian lawmakers concerning substantial production cuts affecting its Fiat, Maserati, and Alfa Romeo brands.
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