Stellantis faces inventory crisis with unsold vehicles and profit forecast cut

Stellantis is facing a significant inventory crisis, with many unsold vehicles, including some with nearly two years of supply. Sales for its American brands, like Jeep and Ram, have dropped sharply in 2024. In response, Stellantis plans to reduce dealer inventory to 330,000 units by the end of 2024, a year earlier than expected. The company will cut production and increase incentives on older models to address the excess stock. The automaker has also lowered its profit margin forecast for 2024 and anticipates a negative cash flow of up to 10 billion euros. Stellantis shares fell nearly 14% following these announcements.