Stellantis Shipments Drop 9% Amid North American Plant Slowdown

Stellantis saw its global vehicle shipments drop 9% in the first quarter of 2025, as the automaker dealt with extended factory shutdowns and a slower ramp-up of new truck models in North America.

The company—known for brands like Chrysler, Dodge, Jeep®, Ram, FIAT, and Peugeot—shipped an estimated 1.2 million vehicles worldwide during the first three months of the year. In North America alone, shipments dropped 20%, or about 82,000 fewer units compared to the same period in 2024. Stellantis blamed this on prolonged holiday closures in January and the early production phase of its refreshed 2025 Ram Heavy Duty lineup.

To prevent dealer lots from becoming overcrowded, Stellantis had already taken steps to reduce U.S. inventory earlier this year. They slashed dealer shipments and boosted customer incentives to get older stock moving, which helped normalize inventory levels during the quarter.

Despite the overall decline, a few bright spots emerged. U.S. sales of the Jeep Compass, Grand Cherokee, and Ram 1500/2500 each grew by more than 10% year-over-year. In fact, March saw the highest level of new U.S. retail orders since July 2023—proof that interest in key models remains strong.

However, the struggles weren’t limited to North America. In Europe, Stellantis shipments fell by 47,000 vehicles, an 8% decline year-over-year. The drop came as the company transitioned to new models and faced softer demand for light commercial vehicles.

South America helped balance things out. Combined shipments across South America, the Middle East & Africa, China, India, and Asia Pacific rose by 4%. Growth in South America was strong enough to offset weaker results elsewhere.

Still, new challenges are already appearing. President Trump’s new 25% tariffs on imported automobiles went into effect in early April. Stellantis responded by temporarily pausing production at its Mexico and Canada plants to reassess the impact.

In the U.S., Stellantis is fighting back with bigger deals. The company rolled out employee-pricing discounts to the general public on most of its new vehicles—a bold move aimed at boosting showroom traffic. Ford recently did the same.

Source: Wall Street Journal