Stellantis Q3 2024 Shipments Decline Amid Inventory Cuts

Stellantis has released its preliminary consolidated shipment estimates for the third quarter of 2024, outlining key trends and strategic moves as the company navigates a period of product transitions and inventory adjustments. These estimates provide insight into the automaker’s global performance, highlighting a temporary decline in shipments while pointing to potential growth in the near future.

Shipment Decline Reflects Strategic Adjustments – 

For the three months ending September 30, 2024, Stellantis’ consolidated shipments were estimated at 1.148 million units, representing a 20% drop compared to the same period in 2023. The term “shipments” here refers to the volume of vehicles delivered to dealers, distributors, or directly to customers—numbers that directly impact Stellantis’ revenue. The decline in shipments exceeded the estimated 15% decrease in sales during this time, due to the company’s deliberate efforts to lower dealer inventories and adjust its product lineup.

North America: Focus on Inventory Reduction and New Product Transition – 

In North America, Stellantis saw an estimated shipment decline of about 170,000 units, with over 100,000 units attributed to planned production cuts aimed at reducing dealer inventories. This strategy is part of Stellantis’ efforts to streamline its supply chain and prepare for the introduction of new models. The company is gearing up for significant product launches starting in late 2024, such as the controversial Dodge Charger Daytona and the Jeep® Wagoneer S, which are expected to drive future growth.

Despite the dip in shipments, Stellantis reported an encouraging trend in U.S. market share, which increased month over month during the third quarter—from 7.2% in July, to 7.9% in August, and reaching 8.0% in September. Additionally, U.S. inventory levels were reduced by 50,000 units (an 11.6% decrease) compared to the end of the previous quarter, indicating progress in aligning supply with market demand.

European Market Adjustments: Delayed Launches Affect Shipments – 

In Europe, Stellantis faced a reduction in shipments of around 100,000 units year-over-year. This was primarily due to delays in launching new models based on its Smart Car platform. For example, the new Citroën C3 only began shipping in September, impacting overall volumes for the quarter. However, Stellantis is optimistic about the outlook for its new European products. Early demand is strong, with pre-orders reaching 50,000 units for the Citroën C3 and 80,000 units for the all-new Peugeot 3008.

These new models are expected to help Stellantis regain momentum in the European market as they become more widely available in the coming months.

Mixed Results in the “Third Engine” Markets – 

Stellantis refers to its operations in South America, Middle East & Africa, and China and India & Asia Pacific collectively as the “Third Engine.” In this region, overall shipments remained flat year-over-year, with increases in South American shipments balancing out declines in other areas, such as the Middle East & Africa and China. This stability suggests that while some markets face challenges, Stellantis is maintaining a steady presence in the region.

Preparing for Future Growth – 

Stellantis’ Q3 2024 shipment estimates are a reflection of the company’s strategic priorities, including managing dealer inventories and preparing for the introduction of new multi-energy vehicles. As Stellantis transitions its product lineup to include more electric and hybrid models, the company expects that these efforts will lay a foundation for stronger performance in upcoming quarters.

While the current shipment figures are preliminary and subject to revision, they provide a snapshot of how Stellantis is managing short-term challenges while setting the stage for future growth. Finalized shipment data, along with detailed revenue information, will be released in the company’s official Q3 2024 report.