Stellantis, the automotive giant known for brands like Jeep, Ram, Chrysler, Dodge, and Fiat, has reported a staggering 20% decline in its U.S. vehicle sales during the third quarter of the year.

This drop mirrors the unfortunate trend from the previous quarter where sales had already fallen by 21%. The latest figures reveal total sales of only 305,294 vehicles, down from 380,563 last year.

While some decline was anticipated, the magnitude of the drop has raised eyebrows, especially in light of Stellantis' previous warnings about challenges in their North American operations.

The results were delayed by a day, shocking industry analysts and investors alike who were keeping a close eye on the automaker's performance.

Among the lineup, only Fiat managed to stay afloat with a modest increase of 316 vehicles sold. The rest of the brands suffered significant downturns: Jeep sales fell by 6%, Ram by 19%, Chrysler plummeted by 47%, Dodge saw a staggering decline of 43%, and Alfa Romeo recorded a 29% drop.

In an effort to combat these worrying trends, Stellantis has undertaken aggressive measures, which include introducing a comprehensive incentive program across its U.S. brand portfolio.

Matt Thompson, head of U.S. retail sales, noted that this initiative has helped reduce dealer inventory by over 50,000 units and improved market share from 7.2% in July to 8% in September.

These initiatives are set to continue through the end of the year as the company braces for the arrival of 2025 models.

As Stellantis grapples with high inventory levels, the outlook for 2024 has become increasingly daunting.

The automaker plans to cut vehicle shipments more aggressively than initially intended while also raising buyer incentives.

Layoffs among union workers and the termination of supplemental employees have added a layer of uncertainty to an already tumultuous situation, although exact numbers remain undisclosed.

Adding to the tension, the United Auto Workers (UAW) has threatened a national strike against Stellantis, demanding more significant product and investment commitments from the company.

In the midst of these challenges, dealers have expressed frustration with CEO Carlos Tavares and his leadership, leading to speculation about a potential search for his successor, as his contract is set to expire in 2026.

Looking ahead, Stellantis is pinning its hopes on new electric vehicles, including the much-anticipated Ram 1500 REV and Dodge Charger Daytona, but only time will tell if these offerings will reinvigorate sales.

Industry experts have highlighted Stellantis' struggle with an aging product lineup and an unappealing affordability index compared to competitors like General Motors and Ford.

In contrast, General Motors reported a less severe 2.2% drop in sales at 659,601 vehicles, while Toyota experienced an 8% decrease at 542,872.

Ford, on the other hand, boasted relatively stable performance with a slight increase of 0.7% in new vehicle sales, yielding 504,039 units.

With challenges mounting, Stellantis has its work cut out for it in the coming quarters.

Will their new strategies and electric offerings be enough to turn the tide? Stay tuned as this story unfolds!