Stellantis, parent company of Peugeot, Fiat and Chrysler, saw its third-quarter sales plunge 27% to 33 billion euros, weighed down by its difficulties in North America and by “headwinds” in Europe in particular, reports theAFP this Thursday October 31, 2024.
Difficulties in North America
The third quarter was marked by the « transition » sometimes delayed between two generations of vehicles, with several launch delays, such as those of the Citroën C3 and C3 Aircross, which notably slowed down turnover in Europe (-12% over one year), said Stellantis management in a press release published Thursday.
In North America, turnover collapsed (-42% year-on-year) due to a drop in sales and promotions launched to reduce vehicle inventories. The group emphasized that it was “on the way” to achieve its inventory reduction targets in the United States, with 80,000 fewer vehicles out of the 100,000 planned for the end of November.
“Although third quarter 2024 results were below our potential, I am pleased with the progress in resolving operational issues, particularly regarding U.S. inventory”indicated the group's new financial director, Doug Ostermann.
The group under pressure
The group of fifteen brands is now counting on the rise of the twenty new vehicles launched in 2024, including the Alfa Romeo Junior or the electric Jeep Wagoneer S SUV. Stellantis is going through a difficult time after years of record profits, since its founding in 2021 with the merger of PSA (Peugeot-Citroën) and FCA (Fiat-Chrysler).
The group announced at the end of September a clear downward revision of its operating margin objective, now estimated between 5.5% and 7%, compared to “two digits” previously, for the year 2024. He confirmed these objectives on Thursday. After a string of record quarters, Stellantis finally took note of a “deterioration” global automotive market, with a “increase in supply” et “increased Chinese competition”.
Stellantis, which produces Chrysler as well as Citroën, Fiat, Jeep, Dodge, Lancia, Opel, Peugeot, Ram and Vauxhall, had already published a sharp fall in first-half results in July. Since then, the group has announced the arrival of several executives more focused on marketing, as well as the retirement in 2026 of its general manager Carlos Tavares.
