Stellantis shares fall after 20% drop in Q3 shipments amid inventory reductions

Investing.com  |  Author Navamya Acharya

Published Oct 16, 2024 18:50

Stellantis shares fall after 20% drop in Q3 shipments amid inventory reductions

Investing.com -- Shares of Stellantis (EPA:STLAM) (NYSE:STLA) fell after the automaker reported a 20% decline in global shipments for the third quarter, citing inventory reduction measures and delays in launching new models. 

The company in an exchange filing said it shipped an estimated 1,148 thousand units vehicles between July and September. 

“The shipment decline was more severe than the underlying sales decline in the period of approximately 15%, due to the temporary impacts of transitions in our product portfolio and dealer inventory reduction initiatives,” the company said. 

North America, a crucial market for Stellantis, saw the largest shipment losses, with volumes down by around 170,000 units compared to last year. 

Over 100,000 of these units were tied to inventory cuts, which the company said were necessary to prepare for upcoming launches like the Dodge Charger Daytona and the Jeep Wagoneer S. 

Despite the shipment reductions, Stellantis noted that U.S. sales to end customers grew throughout the third quarter, with market share rising from 7.2% in July to 8% in September.

In Europe, shipments were down by roughly 100,000 units, a result of delays in launching vehicles based on the Smart Car platform. 

The Citroën C3, one of the affected models, only began shipping late in the quarter, but Stellantis remains optimistic about its future performance. 

The company reported strong demand for upcoming models, including 50,000 orders for the new Citroën C3 and 80,000 for the Peugeot (OTC:PUGOY) 3008.

Shipments in other regions were mixed, with South America posting gains that offset declines in China, India, the Asia-Pacific region, and the Middle East. 

Stellantis said shipments across its so-called “Third Engine” markets, which include these regions, remained flat overall.

Get The App
Join the millions of people who stay on top of global financial markets with Investing.com.
Download Now

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

Sign out
Are you sure you want to sign out?
NoYes
CancelYes
Saving Changes