The chip shortage has led to low dealer inventories
Improvements in the supply of components in October give hope to the company
Stellantis is the only American automaker to make a profit in the first and second halves of 2021
Stellantis is confident that its dealer inventories will stabilise by the end of the year due to an increase in the supply of semi-conductors coming from Asia that was seen in October.
The automaker has been affected by the shortages caused by the pandemic and inventories at its dealerships around the United States are very low and they have consistently decreased over the last year. The current number of cars sitting on the company’s dealer lots in the US is about 689,000 while it was around 1.195 million at the same time in 2020.
However, the company believes the worst of the crisis has passed and it claims that its inventories will stabilise by the end of the year, before growing back to their usual levels during 2022 or 2023.
Stellantis saw its value drop by 14% and its deliveries of new vehicles fall by 27% during the July to September quarter. This production slump means the company built around 600,000 vehicles less than it expected to.
Interestingly, Stellantis became the market leader in South America as well as Europe’s commercial sector. The success in South America is helped by the fact that most of the former FCA brands are sold there, in addition to Peugeot and Citroen from the former PSA Group.
Due to its strong presence in most major markets, Stellantis is the only automaker headquartered in the US to report earnings for the first and second halves of 2021.