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Stellantis bosses blame tough competition in Europe, while cars pile up in US sales lots
Vauxhall owner Stellantis’s sales have plunged by more than a quarter amid production issues and an electric vehicle (EV) slowdown in Europe.
Stellantis, which also owns Citroen, Fiat and Peugeot, said revenues slumped from €45.1bn (£37.7bn) to €33bn (£27.6bn) in the third quarter of 2024.
The number of vehicles shipped by the company fell from 1.5m to 1.3m over the period.
Bosses have blamed delayed model launches and tough competition in Europe, as well as lower numbers of cars shipped to the US – where the company is seeking to shift a surplus of vehicles that have piled up in sales lots.
In Europe, Stellantis and other car makers have complained about tough new regulations aimed at boosting take-up of EVs, even as inflation has battered households and led to softer demand for the cars.
Sales in Europe dropped from €14.1bn (£11.8bn) to €12.5bn (£10.5bn) in the third quarter, while vehicle shipments fell from 599m to 496m.
Stellantis and its European peers face what many analysts see as an existential struggle with Chinese electric car manufacturers for control of the passenger vehicle mass market.
This has prompted Volkswagen, Europe’s biggest car maker, to propose huge workforce cuts and the closure of German factories for the first time, partly in an effort to plough more investment into EV development.
Chinese brands such as BYD, SAIC and Geely sell EVs with starting prices of less than £10,000 in their home country, although in Europe their cheapest offerings have so far hovered closer to the £15,000 mark.
Stellantis has teamed up with Chinese brand Leapmotor to offer the more affordable T03 city car, which will go on sale in late November with a starting price of £15,995.
It will be the second-cheapest electric car on the market – excluding quadricycle “microcars” – after the Dacia Spring, which starts at £14,995.
The T03 is part of a “new wave” of car launches Stellantis is preparing for, including some 40 new electric models.
The weak numbers come after it was announced that Carlos Tavares, the chief executive of Stellantis, would depart in 2026 following an investor backlash over the management of the business.
On Thursday, Doug Ostermann, the company’s finance chief, said the latest results were “below our potential”.
But he added: “With progress resolving challenges we will soon benefit from the significantly expanded reach our generational new product wave brings to 2025 and beyond.”