Stellantis sales plunge in the U.S. as the CEO tries to fix his ‘arrogant’ mistakes
On Wednesday, Stellantis (STLA) reported another quarter of plunging sales as the company behind brands such as Jeep and Chrysler attempts to fix its so-called “disaster.”
The automaker sold 305,294 vehicles in the U.S. between June and September, a 20% decline compared with a year earlier. That follows a second quarter marked by a similar 21% year-over-year decline. The last time Stellantis had a quarterly sales increase was in the second quarter of 2023.
By volume, sales are down at all but one of Stellantis’ brands compared with a year earlier. Dodge and Chrysler reported the biggest hits, with sales down 47% and 43%, respectively, while sales for Ram, Alfa Romeo, and Jeep were down by smaller margins. Fiat’s sales grew by 118% to 316 units.
Stellantis’ performance in North America has been rough in recent months, plagued by big recalls, plummeting profits, quality issues, and executive departures. Although, the company noted, its market share grew to 8% from 7.2% a quarter earlier.
“We continue to take the necessary actions to drive sales and prepare our dealer network and consumers for the arrival of 2025 models,” Stellantis’ head of U.S. retail sales, Matt Thompson, said in a statement.
Monday, the company slashed its full-year guidance for adjusted operating income and expected industrial free cash flow, and it pushed up its timeline to lower U.S. dealer inventory to about 330,000 units. Stellantis cited a growing supply of vehicles and “deterioration” in the global automotive industry as the reason, following similar proclamations from companies such as BMW, Mercedes-Benz, and Volkswagen.
In June, Tavares called himself “arrogant” while speaking at an investor event, adding he should have “acted immediately” to manufacturing issues and ballooning inventory in the U.S. Stellantis began searching for its next chief executive last month as criticism was flung at Tavares, although it is open to extending his contract beyond its 2026 expiration date.
In recent weeks, Tavares’ leadership has been criticized by the United Auto Workers (UAW) union — which represents 43,000 Stellantis workers — and the U.S. Stellantis National Dealer Council, which warned “disaster has arrived” at Stellantis. An heir to the Chrysler family declared his intent to buy the brand back from Stellantis and lambasted Tavares and other executives.
The UAW filed a series of federal labor charges against the automaker last month. The union accused the company of failing to keep to the promises made in its labor contract and of planning to transfer production of the Dodge Durango to Ontario from Detroit. Stellantis has denied both of the UAW’s allegations.
The UAW is planning on rallying Thursday outside Stellantis’ facility in Sterling Heights, Michigan, to continue its criticism of the automaker. Almost 200 union leaders from locals representing Stellantis workers voted unanimously to recommend members prepare to authorize a strike if the company “refuses” to keep its promises, according to the UAW.
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