Stellantis Profits Plunge 70% Amid U.S. Price Cuts

Stellantis, the world's fourth-largest automaker, has reported a 70% plunge in profits, but fresh inventory data suggests that its recent price cuts in the U.S. may be starting to work.

The company, which owns brands such as Jeep, Ram, and Fiat, has been struggling with high inventory levels and slowing sales in the U.S. market. In response, Stellantis has been offering significant discounts on its vehicles, with some models seeing price cuts of up to $10,000.

According to the latest data from industry analysts, these price cuts appear to be having an impact. Sales of Stellantis vehicles in the U.S. have been increasing, with some models seeing double-digit growth in sales compared to the same period last year.

However, the company's profits have taken a significant hit as a result of these price cuts. Stellantis reported a net profit of €1.3 billion ($1.4 billion) in the first quarter of 2023, down from €4.4 billion ($4.8 billion) in the same period last year.

Despite the decline in profits, Stellantis CEO Carlos Tavares remains optimistic about the company's prospects. He noted that the company's focus on reducing inventory levels and improving sales is paying off, and that the company is on track to meet its full-year guidance.

Stellantis is not the only automaker to be struggling with high inventory levels and slowing sales in the U.S. market. Ford and General Motors have also been offering significant discounts on their vehicles in an effort to clear inventory and boost sales.

However, the impact of these price cuts on the automakers' profits remains to be seen. As the U.S. market continues to evolve, automakers will need to find new ways to adapt and remain competitive.