Stellantis anticipates a 20% decline in consolidated vehicle shipments for the third quarter of 2024, citing a need to reduce excess inventory, particularly in North America. The automaker forecasts global shipments at 1.15 million vehicles, down from 1.43 million during the same period last year. This drop is more severe than the 15% decline in sales, primarily due to temporary disruptions caused by product portfolio transitions and dealer inventory adjustments.
In North America, where Stellantis has historically performed well, shipments plummeted by 171,000 vehicles—a 36% decrease. Over 100,000 of these vehicles were affected by planned production cuts ahead of new model launches expected in late 2024. Despite these setbacks, the company’s U.S. market share rose 8% by the end of September, with inventories down by 50,000 units since the second quarter.
In Europe, shipments dropped by 100,000 units, or 17%, mainly due to delays in product launches like the Citroen C3, which began shipping in September. Stellantis also revised its 2024 profit margin and cash flow forecasts, now projecting up to a 10 billion euro cash burn as it reduces production and introduces discounts to revive its U.S. business.
The automaker has initiated a new practice of releasing quarterly shipment estimates alongside commentary on business trends. Full third-quarter sales and shipment data are expected on October 31. However, Stellantis’ luxury brand Maserati is also facing challenges, with expected deliveries falling 60% to just 2,100 vehicles for the quarter.
Compounding Stellantis’ difficulties, the company announced a recall of 20,755 hybrid crossover SUVs in the U.S. due to a potential issue with the brake pedal. The recall affects specific 2024-2025 Alfa Romeo Tonale plug-in hybrids and 2024 Dodge Hornet PHEVs. Stellantis identified 15 cases worldwide, including one accident with no injuries, related to the brake pedal inadvertently disengaging during use. Affected owners will receive free repairs, and the automaker advises using the electronic parking brake if braking power is lost. The recall also extends to Canada, Mexico, and select global markets.
Despite these challenges, Stellantis has sold 15,566 Hornets and 2,737 Tonales in the U.S. this year, underscoring the importance of addressing these safety concerns promptly as the automaker navigates an increasingly turbulent year.
