Stellantis, the trans-Atlantic automaker, reported a 19.8% decline in U.S. new vehicle sales during the third quarter of 2023, despite efforts by CEO Carlos Tavares to address past mistakes. The company’s sales performance was expected to be the worst among major automakers for the period, with a decline of roughly 21% projected by industry forecasters. However, Stellantis noted some signs of improvement, including a market share increase from 7.2% to 8% and a reduction in U.S. vehicle inventory.
During the third quarter, all of Stellantis’ brands except for Fiat experienced sales declines, with Chrysler and Dodge seeing more than 40% reductions. The company’s Ram truck brand recorded a roughly 19% fall, while Jeep was off about 6% year over year. These sales figures come amidst other challenges for Stellantis, including a lowered profit margin forecast for 2024 and a recall for popular plug-in hybrid electric Jeep models due to fire risks.
Tavares has acknowledged mistakes made by himself and the company in the U.S. operations, attributing the sales declines to factors such as slow inventory sell-down, manufacturing issues, and a lack of sophistication in the market approach. Since its formation through a merger in 2021, Stellantis has seen declining sales each year, with a 1% decrease in 2022 compared to the previous year. Tavares has focused on profit-driven cost-cutting measures, prioritizing profits and vehicle pricing over market share, leading to criticism from the UAW and franchised dealers.
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