Jeep vehicles will be delivered to dealers in Chicago, Illinois on June 20, 2024.
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Detroit- StrantisU.S. new car sales continued a year-long freefall in the third quarter despite moves by Chief Executive Carlos Tavares to address what he called problems. The mistake of “arrogance” by the company.
The transatlantic automaker reported on Tuesday U.S. sales of 305,294 vehicles from July to September, down 19.8% from the third quarter of 2023 and down 11.5% from the first three months of this year.
Stellantis is expected to have the worst sales performance among the major automakers in the third quarter, with industry forecaster Cox Automotive expecting sales to fall about 21%.
Cox and his forecaster Edmonds expect industry-wide sales in the third quarter to be down about 2% Compared to a year ago.
Stellantis’ disappointing sales are the latest problem facing the automaker this week. Cut profit margins in 2024 Anticipating and being affected by recalls involving popular plug-in hybrid electric Jeep models Due to fire risk.
This week’s problems add to disappointing first-half financial results as the automaker faces problems in the U.S.
Stellantis, General Motors and Ford Stocks in 2024.
The company’s shares are down 41% this year on the New York Stock Exchange. The stock hit a new 52-week low on Tuesday, closing at $13.71, down 2.4% on the day.
At a June investor event, Tavares said the company would Correct the “arrogant” mistake The products he and the company make at the automaker’s U.S. operations have led to falling sales, bulging inventories and investor concerns.
He said a combination of three factors contributed to the problem: vehicle inventory wasn’t being sold fast enough; manufacturing issues, particularly at two unnamed factories; and a lack of “complexity in the way we go to market.”
U.S. sales of Stellantis (formerly Fiat Chrysler) have declined annually since reaching a recent peak of 2.2 million units in 2018. 13% compared with the previous year.
Stellantis’ performance compared with the overall U.S. new light vehicle sales market grew 13% last year, according to federal data.
Since the merger of Fiat Chrysler and France’s PSA Group PSA in January 2021 to form the company, Tavares has been on a profit-oriented, cost-cutting mission.
He prioritized profits and vehicle pricing over market share, leading severe criticism U.S. franchised dealers from the United Auto Workers and Stellantis.
