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Stellantis’ revenue fell 27 percent in the third quarter as the owner of Peugeot, Fiat and Jeep suffered a sharp decline in sales in the US and Europe.
But shares in the group rose more than 2 percent in afternoon trading on Thursday as the company said its US market share was improving and it was on track to clear high inventories in North America by the end of the year.
Results follow after cleaning change of management CEO Carlos Tavares after US inventory woes forced the group to sharply cut its annual profit guidance.
In three months until the end of September, Starry reported revenue of 33 billion euros, down from 45.1 billion euros a year earlier, as vehicle deliveries fell 36 percent in North America and 17 percent in Europe.
The group said on Thursday that it had cut its North American inventory by 80,000 since the end of June to 1.3 million vehicles.
“Normalizing our inventory is key. It’s simply fundamental where we need to be to get the business back on track and ensure a strong start to 2025,” new Chief Financial Officer Doug Ostermann said Thursday.
He added that the group’s market share in North America improved from 7.2 percent in July to 8 percent in September, although that was still down from 9.4 percent a year earlier.
The company did not report quarterly earnings, but maintained its recent one revised full-year guidance for adjusted operating margin of 5.5 to 7 percent, down from the previous projection of 10 percent. He also warned that his free cash flow would turn negative.
Tom Narayan, an analyst at RBC Capital Markets, said that while the results were in line with the company’s previous warning, the key question was “whether it can reduce dealer inventory . . . without sacrificing too much price in North America,” as vehicle discounts will harm its suppliers and traders more broadly.
Until just six months ago, the group, created by the merger of Fiat Chrysler and France’s PSA in 2021, outperformed its rivals with a strong balance sheet, a buoyant US business and a flexible electric strategy.
But the company is caught up in wider problems affecting the industry, with slower growth in electric vehicle sales and increased competition from Chinese rivals. Stellantis’ board has also begun a search for Tavares’ successor in preparation for his contract ending in early 2026.
Like Germany’s Volkswagen, Stellantis is also under heavy pressure from Italian politicians and unions to maintain its oldest Fiat factory in Turin despite a sharp drop in sales.
Volkswagen reported a 64 percent drop in quarterly net profit on Wednesday due to slowing sales in China and restructuring costs. Europe’s biggest carmaker has told its powerful works council it plans to close three factories and lay off tens of thousands of workers, marking its most radical restructuring measure in the company’s 87-year history.
