Stellantis' Q4 Shipments Fall 9% Y/Y: Inventory Reduction and New Product Launches Drive Change

Stellantis, the world's leading automaker, reported a 9% year-over-year (y-o-y) decline in consolidated shipments for the fourth quarter of 2024. This decline, compared to the same period in 2023, was driven by two primary factors: inventory reduction actions and new product launches in Europe. The company's shipment performance directionally converged with the underlying sales performance, which was approximately -5% y-o-y.



In North America, Stellantis' Q4 shipments declined by approximately 115 thousand units compared to the same period in 2023, representing a 28% y-o-y decline. This decline was more pronounced than the sales decline of 5% y-o-y, indicating the success of inventory reduction initiatives. The company successfully reduced U.S. dealer inventory by approximately 80K units compared to the end of Q3, ending the period with just over 300K units. This normalization of inventory puts Stellantis in a strong position to support the arrival of new products in 2025 from Jeep, Ram, and Dodge.

In Enlarged Europe, the 6% y-o-y shipment decline in Q4 was strongly reduced compared to Q3 (-17% y-o-y). This improvement was due to the launch of the Citroën C3/ë-C3, which substantially reduced a temporary gap in certain B-segment offerings. Additional B-segment products, such as the MHEV Citroën C3, Citroën C3 Aircross, Opel Frontera, and Fiat Grande Panda, are expected to follow, further supporting shipments. The initial European product launches of Stellantis' next-generation product wave saw a promising start, with orders received for over 90K units for the Citroën C3/ë-C3, and over 140K units for the initial STLA Medium platform Peugeot 3008, Peugeot 5008, and Opel Grandland.



In Stellantis' "Third Engine" (South America, Middle East & Africa, China, and India & Asia Pacific), shipments grew by 5% driven by a 12% increase in South America and a stable Middle East & Africa, more than offsetting shipment declines in China and India & Asia Pacific. South America shipments were supported by stronger industry demand in all main markets and an ongoing production recovery following the Rio Grande do Sul flooding. Middle East & Africa shipments were stable, reflecting improvement in Turkey, Morocco, Egypt, and Tunisia, mostly offset by the impact of temporary import restrictions in Algeria.



The normalization of U.S. dealer inventory is expected to put Stellantis in a strong position to support the arrival of new products in 2025 from Jeep, Ram, and Dodge. This reduction in inventory, achieved through production discipline and incentive actions, allows the company to better prepare consumers for the introduction of new vehicles, which is expected to lead to further opportunity for sales growth and strengthen the company's position in the marketplace.

In conclusion, Stellantis' 9% y-o-y decline in Q4 shipments was driven by inventory reduction actions and new product launches in Europe. The company's strong position in North America, following inventory normalization, and the promising start of next-generation product launches in Europe set the stage for future growth. As Stellantis continues to execute its strategic plan, investors should monitor the company's progress in these regions and the impact of new product introductions on its financial performance.