Stellantis, the world's fourth-largest automaker, announced significant efforts to reduce its substantial inventory levels in the United States. The company is set to launch approximately 20 new models this year as part of its strategy. In the third quarter, the company's shipment volume dropped by 20% year-over-year. This decline is due to its ongoing efforts to lessen inventory at US dealerships and the gaps in its product lineup pending new releases.
US dealerships have long complained about Stellantis's higher pricing compared to competitors, which has driven customers away, resulting in parking lots filled with unsold cars. In response, Stellantis has increased incentives for buyers and intensified plans to cut down the number of vehicles shipped to dealerships.
Between late June and late October, inventory levels at Stellantis's US dealerships decreased by over 80,000 units, putting the company on track to achieve its goal of reducing inventory by 100,000 units by the end of November. Although US sales have been hampered by product lineup gaps, Stellantis plans to introduce a new generation of vehicles from the end of 2024, aiming to bridge this gap and boost sales.
In the third quarter, Stellantis reported a 27% decline in revenue, amounting to 33 billion euros (approximately $35.83 billion).
