Factory outputs fell at Stellantis in 2024, in particular because of the need to sell stocks in the United States. But the situation is tense enough for the group to cut production lines in several Italian factories.
The critical situation in the United States for Stellantis which was facing the rumble of dealers overwhelmed with stocks that were difficult to sell. So, before thinking about bailing out its American distributors, Stellantis had to let them manage these very expensive stocks. And this inevitably weighed heavily on “factory outputs” at the automobile giant, which announced a 20% drop in production worldwide in the third quarter of 2024 compared to the same period in 2023. 1.14 million vehicles were produced and invoiced to distributors and importers compared to 1.42 million last year. And unsurprisingly, the biggest drop is in the North American market at -36%. The current context leads Stellantis to be cautious. Particularly with certain brands currently struggling. This particularly affects Italy.
Several factories closed
If Stellantis remains very optimistic with its French brands and the launches of the 3008 and C3, this is a little less the case for Italy which is bearing the brunt of the slowdown in sales of certain models. The electric 500, already affected several times in recent months, sees its production frequently stopped. But factory shutdowns are increasing. Stellantis “is facing a particularly complex moment in its transition due to the drop in orders on the electric vehicle market in Europe, which is putting all manufacturers, particularly European, in difficulty”.
And the situation in Europe is not necessarily good for Stellantis, which has seen its market share plummet since 2019 and before Covid, going from 22 to 16%. The rise of Tesla and the return to business of the Renault group have made Stellantis’ task very difficult.
Four days of downtime for the factory which produces the Panda and 500, 13 days for the one which manufactures the Fire thermal engine for Jeep and Fiat and the factory assembling the 500 electrics stopped for many days already, until November 1st : these are tough times for the Italian automobile industry. Especially since Carlos Tavares made it clear that only Maserati was losing money in the group today, implying that the trident was the brand in danger. The CEO recognizes a very high price positioning which may cause Maserati to lose customers.
In the meantime, Stellantis must deal with heavy news: the significant drop in the value of the stock on the stock market, the choice of a new CEO who will be able to reconcile Stellantis with Italy and above all ensure the launch of crucial models like the 3008/ range. 5008, the new Panda and the Citroën C3 and C3 Aircross.
