The inventory reduction process weighed on shipments, with Stellantis (STLA.US) Q3 vehicle shipments down 20%

One of the world's largest carmakers, Stellantis(STLA.US), said its global vehicle deliveries in the third quarter fell by about a fifth year-on-year, as the carmaker's leaders continued to trim its bloated inventory levels. Deliveries fell to about 1.15 million vehicles, Stellantis said on Wednesday, with a big drop of 36% in its key North American market.

Stellantis has been struggling with an overstocked inventory, the departure of key executives and a drop in US sales, after raising prices earlier than its rivals. Since its disastrous profit warning last month, chief executive Carlos Tavares has been taking a combative tone, promising a turnaround in North America and replacing some key executives, including its chief financial officer.

Stellantis shares were down 2.4% in early trading in Paris, and are down 44% this year.

Total deliveries in North America were down about 170,000 vehicles year-on-year, Stellantis said, mainly due to the successful implementation of planned production cuts aimed at reducing dealer inventory and product line gaps.

US retail sales volumes have allowed Stellantis to increase its market share from 7.2% in July to 8% in September, while its vehicle inventory in the country was down nearly 12% quarter-on-quarter, reflecting the success of Tavares' inventory reduction efforts.

These deliveries are defined as vehicles delivered to its dealers, distributors or directly to retail or fleet customers, Stellantis said. The carmaker includes a dozen globally known brands, including Peugeot, Citroen and Alfa Romeo, in addition to Jeep and Dodge.