Sales down by 27%, a cold shower for Stellantis

Stellantis has published its quarterly financial results, and unsurprisingly, they are bad. A rebound has become imperative!

Net revenue for the third quarter stands at €33 billion, down 27% compared to Q3 2023. This decline was expected, mainly due to falling sales and a reevaluation of inventories. As for sales alone, they amounted to 1,148,000 units as of September 30, 2024, representing a 20% year-over-year drop. It is understandably difficult to seek margins when the product does not find buyers.

The third quarter of 2024 was also marked by production interruptions on several models as part of a transformation of the overall offering. While the group claims that the winds are against them due to a challenging market environment in Europe, one could argue that they are simply changing. After all, Tesla and BYD are posting record results that clearly demonstrate there is a market for well-thought-out models. The group is pinning hopes on recent arrivals such as the Alfa Romeo Junior and the Citroën C3 and C5, along with their electric variants, to turn things around in Europe. Globally, models like the Citroën Basalt, a low-cost SUV designed for emerging markets, could also make a difference.

Another important point, Stellantis has engaged in a very large operation to reduce its inventories in North America. In this case, the American context is particularly tense due to political uncertainties and repeated strikes that have undermined the performance of the group’s U.S. branch. And to liquidate, there’s no secret – it requires heavy discounting. Sales at almost cost price have just begun and will improve certain financial posts, but it’s never very pleasant for the wallet…

ALSO READ: Stellantis tumbles 50% in 6 months. Why?