Oct 16 (Reuters) - Stellantis ( STLA ) expects a 20%

drop in third-quarter consolidated vehicle shipments, the

carmaker said on Wednesday amid a declining business performance

which led it last month to cut profit and cash-flow forecasts

for the full-year.

The group -- whose profit warning reflected the need to

reduce excess vehicles inventories, especially in North America

-- said it estimated its global shipments to amount to 1.15

million vehicles in the third quarter, down from 1.43 in the

same period of last year.

Stellantis ( STLA ) said the 20% shipment decline was steeper than a

forecast 15% drop in underlying sales in the period, "due to the

temporary impacts of transitions in our product portfolio and

dealer inventory reduction initiatives".

In North America, the group's profit powerhouse, shipments

fell by 171,000 vehicles in the period, or 36%, with more than

100,000 vehicles of that total due to planned production cuts

before the launch of new models expected from late 2024.

But Stellantis' ( STLA ) market share in the U.S. rose during third

quarter to 8% at end-September, while its inventories fell by

50,000 vehicles from the end of second quarter level, the group

said.

In its so-called Enlarged Europe region, shipments fell

approximately by 100,000 vehicles, or 17%, in the period,

primarily due to delayed launches of some products, including

Citroen C3 model, which began shipments in September, Stellantis ( STLA )

said.

The carmaker in September cut its 2024 operating profit

margin forecast and said it would burn cash for up to 10 billion

euros ($10.9 billion) this year, as it pledged to reduce output

and offer big discounts to revive its U.S. business.

Stellantis ( STLA ), which will report third-quarter shipment and

sales data on Oct. 31, said on Wednesday it was initiating a

practice of publishing global quarterly consolidated shipment

estimates and providing commentary on related business trends.

The automaker also said third-quarter consolidated

deliveries at its luxury brand Maserati, a separate business

unit within the group, were expected to fall 60% to 2,100

vehicles.

($1 = 0.9194 euros)