Stellantis Q4 2024 Shipments Drop Amid Inventory Adjustments

Stellantis has released its global shipment estimates for Q4 2024, reflecting a 9% year-over-year decline compared to the same period in 2023. The company attributes this dip to strategic inventory adjustments in North America and production gaps in Europe, while other regions showed signs of growth.

North America: A Significant Drop but a Strategic Move – 

North American shipments experienced a steep 28% year-over-year decline, equating to 115,000 fewer vehicles delivered compared to Q4 2023. Stellantis emphasized this drop was intentional and driven by efforts to reduce dealer inventories. By the end of the quarter, U.S. dealer stock was reduced by 80,000 units, leaving inventory levels just above 300,000 vehicles.

This move positions the company to accommodate a wave of new product launches in 2025, including Dodge, Jeep®, and Ram updates. Despite the sharp decline in shipments, North American sales were down a comparatively modest 5%, demonstrating that the strategy to balance production and incentives was effective.

Enlarged Europe: Signs of Recovery – 

Shipments in Europe declined 6% year-over-year in Q4, marking an improvement over Q3’s 17% drop. This recovery was driven by the launch of the new Citroën C3 and its electric variant, the ë-C3, which addressed a temporary production gap in the region’s B-segment offerings.

The next wave of Stellantis’ European lineup looks promising, with over 90,000 orders placed for the Citroën C3/ë-C3 and 140,000 orders for the STLA Medium-based Peugeot 3008, 5008, and Opel Grandland models. Upcoming launches, including the multi-energy Citroën C3 Aircross and Fiat Grande Panda, are expected to strengthen Stellantis’ European presence further.

South America and Other Regions: A Bright Spot – 

Shipments in Stellantis’ “Third Engine” markets, which include South America, the Middle East, and Africa, grew by 5%. South America led this growth with a 12% shipment increase, supported by a stronger automotive market and recovery from production disruptions caused by flooding in Rio Grande do Sul.

The Middle East and Africa maintained stable shipment levels due to improvements in countries like Turkey and Morocco, though temporary import restrictions in Algeria presented challenges.

However, shipments in China, India, and the Asia Pacific regions faced declines, counterbalancing gains in other areas.

Positioned for a Promising 2025 – 

Despite the overall decline in Q4 shipments, Stellantis appears poised for a strong 2025 with a refreshed lineup and a normalized inventory in the U.S. The company’s next-generation products in Europe and the introduction of key models in other regions could position Stellantis for renewed growth.

This report underscores how strategic decisions, like inventory adjustments and targeted product launches, can align with long-term goals even when they cause short-term disruptions.