Stellantis Stock: Sales Slump Prompts Profit Warning, Recalls

Stellantis, the automotive giant, faces significant challenges as global sales plummeted by approximately 20% in the third quarter, with North America experiencing a staggering 36% decline. This sharp downturn has led CEO Carlos Tavares to revise profit forecasts and announce stringent measures to reduce U.S. dealer inventories to a maximum of 330,000 vehicles by year-end. The company's financial turbulence has already resulted in leadership changes, including the replacement of the chief financial officer.

Safety Concerns Exacerbate Situation

Compounding the sales crisis, Stellantis has initiated a recall of over 21,000 hybrid vehicles in the United States, affecting Dodge Hornet and Alfa Romeo Tonale models. The recall stems from a potential brake pedal defect, which could break under normal driving conditions. Although only one incident without injuries has been reported, this safety issue may further erode consumer confidence and intensify pressure on Stellantis's stock performance.