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DETROIT — Stellantis’ U.S. new vehicle sales saw a decline during the third quarter despite CEO Carlos Tavares’ efforts to address previous mistakes. The trans-Atlantic carmaker reported a 19.8% decrease in sales from July to September compared to the same period last year and an 11.5% drop from the previous quarter. Stellantis was expected to be the worst-performing major automaker in terms of sales during this time. Industry forecasters projected a sales decline of roughly 21% for the company.

Nevertheless, Stellantis noted that its strategies to boost sales and rectify past errors are showing signs of improvement. The carmaker reported an increase in market share during the third quarter from 7.2% to 8%, along with an 11.6% reduction in U.S. vehicle inventory. Matt Thompson, Stellantis’ head of U.S. retail sales, mentioned in a statement that they are taking necessary actions to drive sales and prepare for the introduction of 2025 models.

Despite the overall decline, Stellantis’ third-quarter performance varied among its brands. With the exception of its Fiat unit, all brands experienced sales decreases in the third quarter. Chrysler and Dodge saw reductions of more than 40%, while Ram trucks recorded a drop of around 19% and Jeep sales were down by approximately 6% year-over-year.

Stellantis’ third-quarter sales decline adds to the challenges the company is facing, including a revised 2024 profit margin forecast and a recent recall of certain plug-in hybrid electric Jeep models due to fire risks. The company’s stock on the New York Stock Exchange has decreased by 41% this year, hitting a new 52-week low recently.

CEO Carlos Tavares acknowledged earlier this year the mistakes made by himself and the company in the U.S. operations, leading to sales declines, excess inventories, and investor concerns. Despite the challenges, Tavares has been focused on cost-cutting measures and profit-driven strategies since the merger between Fiat Chrysler and PSA Groupe in 2021. Stellantis’ U.S. sales have been declining annually since 2018, contrasting with the overall U.S. new vehicle sales market, which saw growth last year.

Tavares’ approach to prioritize profits and vehicle pricing over market share has drawn criticism from stakeholders such as the United Auto Workers union and Stellantis’ U.S. franchised dealers.

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