Stellantis ( STLA ) shares are trading lower on Thursday.

The automaker reported Wednesday total U.S. sales of 305,294 vehicles in the third quarter of 2024. That’s down 20% year over year.

Matt Thompson, head of U.S. retail sales at Stellantis North America, mentioned that an aggressive incentive program launched at the start of Q3, combined with significant competitive updates in August and September, led to a reduction of dealer inventory by over 50,000 units, marking an 11.6% decrease by the end of the quarter.

According to the FIM-CISL union, Stellantis’ vehicle production in Italy would worsen with cars under 300 thousand. Overall production, considering commercial vehicles, would fall below 500 thousand, with less than a third of the volumes of 2023 (751 thousand).

In order to meet the government-set target of 1 million vehicles in 2030, the Stellantis Group would have to double production.

Also Read: Stellantis Extends Fiat 500 Electric Production Halt Due To Low Demand

According to Benzinga Pro, STLA stock has lost over 27% in the past year.

Last month, the company was in the headlines for revising its fiscal 2024 guidance. The decision reflects its remediation actions on North American performance issues and deterioration in global industry dynamics. 

The company projects a fiscal 2024 adjusted operating margin of 5.5%—7.0%, down from its prior double-digit growth expectations.

It now expects fiscal 2024 industrial free cash flow of negative 5 billion euros—negative 10 billion euros versus the prior positive cash flow expectations.

Price Action: Stellantis ( STLA ) shares are trading lower by 3.96% to $13.10 at last check Thursday.

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