Stellantis is a multinational automotive corporation formed in January 2021 through the merger of the world’s two largest automakers, Fiat Chrysler Automobiles (FCA) and Groupe PSA.
The name “Stellantis” is derived from the Latin word “stello,” which means “to brighten with stars,” and symbolizes the ambition of the new company to become a global leader in the automotive industry.
This article covers Stellantis’ vehicle sales, market share in North America, and its competitive position in the U.S. versus competitors.
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To help readers understand the content better, the following terms and glossaries have been provided.
North America Segment: The North America segment is one of Stellantis’ reportable segments.
Stellantis operates primarily in the U.S., Canada, and Mexico in the North American region. Its brand names in this region include Jeep, Ram, Dodge, Chrysler, Fiat, and Alfa Romeo.
Stellantis has manufacturing plants in the U.S., Canada, and Mexico in the North American region.
New Vehicle Sales: Stellentis defines its new vehicle sales as the sales of vehicles primarily by dealers and distributors or, directly by the company in some cases, to retail customers and fleet customers.
Sales include mass-market and luxury vehicles manufactured at Stellantis’ plants and vehicles manufactured by joint ventures and third-party contract manufacturers and distributed under its brands. Sales figures exclude sales of vehicles that it contracts to manufacture for other OEMs.
While vehicle sales are illustrative of Stellantis’s competitive position and the demand for its vehicles, sales are not directly correlated to net revenues, cost of revenues, or other measures of financial performance in any given period.
For a discussion of Stellantis’ vehicle shipments that directly correlate to its Net revenues, Cost Of revenues, and other financial measures, you may visit this article: Stellantis Vehicle Wholesale.
Stellantis Business Strategy In North America
Stellantis’ business strategy in North America is focused on leveraging its diverse brand portfolio to increase market share and profitability while promoting sustainable mobility. The company’s North American region includes the United States, Canada, and Mexico, and it is home to some of the most iconic brands in the automotive industry, including Jeep, Ram, Dodge, and Chrysler.
One of Stellantis’ key objectives in North America is to expand its presence in the SUV and pickup truck segments, which are among the region’s most profitable and fastest-growing segments. The company invests heavily in research and development to introduce new models and improve existing ones to achieve this goal. For instance, Jeep has recently launched the all-new Grand Wagoneer, a luxury SUV that aims to compete with high-end models from other automakers.
Another aspect of Stellantis’ business strategy in North America is to increase its focus on electric and hybrid vehicles. The company has announced plans to introduce more than 30 new electrified models across its brand portfolio by 2025, including battery electric, plug-in hybrid, and hybrid vehicles. This move aligns with the company’s commitment to sustainable mobility and reducing its carbon footprint.
Moreover, Stellantis is also committed to improving customer satisfaction and loyalty by offering innovative technologies and services. For instance, the company has partnered with Amazon to offer in-car delivery services for Amazon Prime members, allowing them to have packages delivered directly to their vehicles.
Overall, Stellantis’ business strategy in North America is focused on leveraging its diverse brand portfolio, investing in research and development, promoting sustainable mobility, and enhancing customer satisfaction to increase regional market share and profitability.
How Stellantis Distributes Its Vehicles In North America
Stellantis mainly sells its vehicles to dealers in its dealer network for retail consumers and fleet customers in North America.
Fleet sales in the commercial channel are generally more profitable than sales in the government and daily rental channels, as they offer customized vehicles with more optional features and accessories.
However, orders in the commercial channel are usually smaller than those made in the daily rental channel. Fleet sales in the government channel are typically more profitable than fleet sales in the daily rental channel, mainly due to the product mix included in each respective channel.
How Stellantis Provides Financing To Customers In North America
On November 1, 2021, Stellantis acquired First Investors Financial Services Group in North America, which has been renamed to Stellantis Financial Services US Corp. This acquisition will enable Stellantis Financial Services U.S. to provide financing options to customers and dealers in the near-to-medium term, including retail loans, leases, and floorplan financing.
However, Stellantis will continue to work with independent financial service providers like Santander Consumer USA Inc. (SCUSA) to provide financing options to dealers and retail customers in the U.S. Under the SCUSA Agreement, SCUSA will continue to provide wholesale and retail financial services to dealers and retail customers in the U.S. under the Chrysler Capital brand name. The SCUSA Agreement was amended and extended through 2025, allowing SCUSA to complement Stellantis Financial Services U.S.
As of December 31, 2022, SCUSA provided wholesale lines of credit to approximately 9 percent of the current 2,600 Stellantis dealers in the U.S., while Ally provided 29 percent. For the 2022 sales year, approximately 80.4 percent of the retail vehicles sold to U.S. customers were financed or leased.
Of those financed or leased retail sales, SCUSA, Ally, and Stellantis Financial Services U.S. (still in its start-up phase) represented 30.5 percent, 13.4 percent, and 1.2 percent, respectively. Stellantis has a private label agreement with Banco Inbursa Group to provide dealer and retail customer financing programs in Mexico.
Vehicle Sales In North America
Stellantis’ vehicle sales in North America topped 1.8 million units in fiscal 2022, down 10.7% over 2021 and 13.1% over 2020.
Since 2018, Stellantis’ vehicle sales in North America have declined from 2.5 million units to 1.8 million units as of 2022, representing a drop of 28% over the five years.
The company attributed the vehicle sales decrease in North America in 2022 compared to 2021 to the continuing production headwinds due to supply chain issues, pricing actions, and headwinds driven by inflation.
Stellantis has stated that its vehicle sales and profitability in the North American region are generally weighted towards larger vehicles such as utility vehicles, trucks, and vans, consistent with overall industry sales trends in the North American segment, which have become increasingly weighted towards utility vehicles and trucks in recent years.
Stellantis anticipates an 8% increase in North American industry sales by the end of fiscal 2023, which could boost the company’s vehicle sales in the region.
Vehicle Sales In The U.S., Canada And Mexico
The U.S. is Stellantis’ largest market in the North American region. The company sold over 1.5 million vehicles in the U.S. in fiscal 2022.
On the other hand, Stellantis’ retail sales in Canada totaled over 169,000 units, while that in Mexico totaled 74,000 in fiscal 2022.
Stellantis’ vehicle sales have significantly declined in the U.S. and Canada since 2018.
For example, Stellantis saw its vehicle sales plummet from 2.2 million units in 2018 to 1.5 million units in 2022, representing a decline of over 30% for the five years.
A similar trend occurs in Canada. Sales have declined from 225,000 vehicles in 2018 to 169,000 in 2022, representing a drop of 25% over the five years.
Stellantis’ sales have remained steady in Mexico compared to its sales performance in other countries.
Vehicle Sales In The U.S., Canada And Mexico In Percentage
Stellantis’ U.S. sales make up over 80% of its total retail volume in North America. This figure came in at 86.4% in fiscal 2022, down slightly from the 88.7% in 2021.
On the other hand, Stellantis’ sales in Canada represent less than 10% of its total retail volume in North America, while Mexico contributes only 4% in fiscal 2022.
Although sales from Mexico make up less than 5%, the ratio has steadily risen since 2018, while the ratio in the U.S. has slightly declined.
Stellantis’ sales in Canada have remained stable at about 9% of its total retail volume in North America since 2018.
Market Share In North America
Stellantis has a total market share of 10.7% in North America in fiscal 2022, down slightly from the 11.1% in 2021.
Since 2018, Stellantis’ North American market share has decreased from 12.0% to 10.7% as of 2022.
Market Share In The U.S., Canada And Mexico
Stellantis’ market share in the U.S. has decreased from 12.6% in 2018 to 11.0% as of 2022, while its market share in Mexico has climbed from 5.1% to 6.6% for the same period.
Stellantis’ market share in Canada has remained relatively flat at 11% since 2018. However, this figure plummeted to 9.9% in fiscal 2021, when vehicle sales in this country reached a record low of 161,000 units in the same year.
Market Share Vs Competitors In The U.S.
Stellantis, with an 11% market share in fiscal 2022, is the fourth-largest U.S. car manufacturer, following GM, Toyota, and Ford.
GM has the largest market share in the U.S., topping 16.1% in fiscal 2022, while Toyota’s market share in the U.S. came in 15% for the same year.
Ford’s market share in the U.S. reached 13.2% as of 2022, making it the third largest automobile company in this region.
To recap, Stellantis sold 1.8 million vehicles in North America in 2022, representing an 11% decrease compared to the prior year.
The decrease in 2022 sales compared to 2021 resulted primarily from continuing production headwinds due to supply chain issues, pricing actions, and headwinds driven by inflation.
However, Stellantis did see pent-up demand for Jeep and Ram brand vehicles.
In terms of market share, Stellantis held nearly 11% of the North American market in 2022, which was a slight decline compared to the previous year.
This places the company fourth among the major automakers operating in the region, behind General Motors, Toyota, and Ford.
Overall, Stellantis’ strong sales and market share performance in North America in 2022 suggest that the company is well-positioned to compete in this important market in the coming years.
References and Credits
1. All financial figures presented in this article were obtained and referenced from Stellantis’ quarterly and annual reports, SEC filings, investor presentations, press releases, etc., which are available in Stellantis Investor Relation.
2. Pixabay images.
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