Stellantis Adjusts 2024 US Forecast, Focuses on Inventory Reduction

Stellantis

Global automaker Stellantis has revised its 2024 guidance for its US operations, with a sharper focus on accelerating its inventory drawdown strategy. The company now aims to reduce dealer inventories to 330,000 units by the end of 2024, a goal previously set for the first quarter of 2025. This adjustment highlights Stellantis’ intent to streamline its supply chain and reduce excess stock sooner than anticipated.

A Strategic Shift in North America

In the second half of 2024, Stellantis has already reduced US inventories by 40,000 vehicles, according to Ed Ditmire, the company’s head of investor relations, who spoke on September 30. To achieve its new target, Stellantis is cutting North American shipments by more than 200,000 vehicles during this period—doubling its original reduction goal of 100,000 vehicles. This aggressive move underscores the company's focus on operational efficiency amid evolving market conditions.

Ditmire also noted that Stellantis’ decision to revise its forecast and reduce inventories came after a series of changes to its production schedules. These adjustments are part of a broader effort to adapt to challenges posed by increasing global competition, particularly from Chinese automakers. In Europe, Chinese car companies are expected to account for over 10% of electric vehicle (EV) sales and more than 20% of total vehicle sales in 2024, further intensifying market dynamics for Stellantis.