Stellantis, Jeep’s parent company, sees shipments fall as it clears US inventories

The Key Takeaways

• Stellantis' fourth-quarter shipments slumped as the carmaker reduced the number of vehicles it had in its U.S. inventory.
• Stellantis reduced its U.S. stock levels by approximately 80,000 units, resulting in a 28% decline of shipments.
• South America is the only area where shipments increased from one year ago.

Stellantis shares (STLA), which are traded intraday, lost ground Thursday. The carmaker had reported an unexpected drop in shipment as they cleared their U.S. inventories.

According to the parent brand of Chrysler Jeep and Peugeot, shipments fell 9% on an annual basis, from 1.4 million units in the third quarter. The parent company of brands including Chrysler, Jeep and Peugeot said that shipments in North America fell 28% despite a 5% drop in sales.

Stellantis stated that the decline in shipment was caused by “inventory reduction initiatives, where production discipline combined with incentive actions resulted in a ~80K units decrease of the U.S. dealer inventory compared to the end of the Q3.”

Shipments were down 33% in its China and India & Asia Pacific region and fell 6% in Europe. South America was the only area to see an increase in shipments, which rose by 12%. Middle East & Africa were both flat.

South America is a growing market for carmakers, as noted by one of them. “a stronger industry demand in all main markets and an ongoing production recovery following the Rio Grande do Sul flooding.” Import restrictions temporarily imposed in Algeria have offset the gains achieved in Egypt and Morocco.

Stellantis stock was down by 1.5% in Thursday’s intraday trade, closing at $12.56. The shares have now lost 40% of their market value over the last 12 months.

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