Gia Automotive News Recently, Stellantis announced that its third-quarter net revenue fell 27% year-on-year to 33 billion euros (approximately US$35.
8 billion) due to a decline in vehicle deliveries in major markets such as Europe and North America, lower than analysts forecast 35.
9 billion euros.
Citroen C5 Aircross concept car.
Photo source: Stellantis, among which in the North American market, Stellantis ‘deliveries fell by as much as 36% in the third quarter.
However, Stellantis said the company is working hard to reduce inventories in the United States, and between July and October, it reduced the inventory of vehicles at dealers in the United States by more than 80,000 vehicles.
Bernstein analysts such as Daniel Roeska said in a report that due to a stronger-than-expected product portfolio, Stellantis ‘revenue fell less than deliveries in Europe, helping to offset some of the impact of its poor performance in the North American market.
Doug Ostermann, Stellantis’s new chief financial officer, said in a conference call with reporters: “Third quarter performance was significantly below our potential, but Stellantis has made good progress in reducing inventories and increasing U.S. market share.
In October, Stellantis absolute sales in the United States are expected to increase by approximately 10% month-on-month again.
“, At the same time, Doug Ostermann said he decided not to narrow Stellantis’s full-year performance forecast so that Stellantis management would have enough flexibility to reduce inventory and regain market share.
He added that the company would stick to its dividend policy and could conduct a share repurchase next year.
, Eric Hassid, trader at Aurel BGC, said: “Stellantis’s third-quarter results were not ideal, but we were expecting it.
The company reiterated its full-year financial forecast and Stellantis CEO Carlos Tavares will do everything in his power to turn the company around before leaving.
“, It is worth noting that Stellantis mentioned that there is strong demand for new models such as the Citroen C3 and Peugeot 3008, and that this year the company will launch 40 pure electric models in Europe.
Despite this, the company pointed to product delays and pricing pressures in its Italian home market.
, Stellantis’s share price rose 1.
7% after the earnings report was released.
But so far this year, the company’s share price has fallen more than 40%.
Stellantis has been struggling to cope with delays in the launch of new models, product recalls and shrinking market share in the U.S. and Europe due to price increases that exceed those of its peers.
Since Stellantis issued a catastrophic profit warning last month, Tang Weishi has promised to resolve the problem and replaced managers, including the chief financial officer.
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