Stellantis shipments drop 20%, but eventually resolved

The automaker’s North American shipments fell sharply as the region cut production to combat an inventory glut

Stellantis has been dealing with an inventory glut, which they are working to address through a series of incentives and production cuts. While this isn’t exactly news, the company revealed that third-quarter shipments are expected to drop 20%.

This equates to approximately 279,000 vehicles, with the largest decline occurring in North America. Among them, shipments fell by approximately 171,000 units in the third quarter.

More: New car inventory surges, Stellantis drowned in unsold cars

The company said the majority of the production decline – more than 100,000 units – can be attributed to “pre-announced production cuts aimed at reducing dealer inventories and reducing product portfolio gaps as the group shifts to new multi-energy products.” The latter. These include the Dodge Charger Daytona and Jeep Wagoneer S, which will begin arriving at dealerships later this year.

In addition to highlighting expensive new products, Stellantis noted gains in U.S. market share, with inventories down 11.6%. The company managed to clear around 50,000 units, thanks to generous incentives.

While offers vary, we found the Jeep Grand Cherokee to be financed at 0 percent or a $7,000 cash allowance. Gladiator customers can get “10 percent off MSRP” on the Dodge Hornet R/T, while “current FCA LLC lessees can get $9,500 in financing on the Dodge Hornet R/T.”

Shipments in Europe were down by about 103,000 units compared with a year ago, due to delayed launches of vehicles based on the company’s smart car platform. Stellantis said the issue had been resolved due to strong demand for the Citroën C3 and Peugeot 3008, with 50,000 and 80,000 orders taken respectively.

For other regions, Stellantis didn’t reveal much, but shipments in China, India and Asia Pacific plummeted 30%. Maserati’s shipments plummeted like a lead balloon, down 60%, but that’s not surprising since the Ghibli, Quattroporte and Levante all failed miserably.

While things remain bleak for Stellantis and its embattled leader, the company has previously revealed it is accelerating its inventory “normalization” plan in the United States. Their goal is to have no more than 330,000 vehicles in dealer inventory by the end of this year. To achieve this, they are cutting production and shipments and increasing incentives for 2024 and older vehicles.