Stellantis, the global automotive giant, has reported a substantial 20% year-over-year decline in its third-quarter shipments, amounting to 1.15 million units worldwide. This downturn is more severe than the anticipated 15% drop in underlying sales, attributed to strategic portfolio transitions and efforts to reduce dealer inventories. The company, which owns brands such as Jeep, Ram, Chrysler, and Dodge, has been grappling with excess inventory and delayed model launches, particularly affecting its North American market.

In North America, Stellantis experienced a 36% decrease in vehicle deliveries, with 170,000 fewer cars shipped compared to the same period last year. This reduction is largely due to production cuts aimed at managing dealer inventory levels, which have been a point of contention among U.S. dealers. Despite these challenges, Stellantis managed to slightly increase its U.S. market share, reaching 8.0% in September, up from 7.2% in July.

The automaker's premium brand, Alfa Romeo, recently unveiled its first fully electric vehicle, the Milano, in Milan, Italy, as part of its broader strategy to transition towards electric mobility. However, the company has also revised its 2024 profit forecast, warning of higher-than-expected cash burn as it implements significant discounts to boost its U.S. business, a move that has impacted its market valuation.

Stellantis' efforts to address these challenges include extending incentives and adjusting vehicle production to better align with consumer demand. The company remains focused on reducing inventories and reviving its U.S. operations, despite the current setbacks.