Stellantis Shares Rise as Strong Ram Sales Offset Steep Jeep Decline in Q3

Stellantis (STLAM) reported nearly flat U.S. sales for the third quarter, as a powerful surge in demand for its Ram pickup trucks successfully offset a steep drop in deliveries for its flagship Jeep brand. The mixed results were viewed positively by investors, who sent the automaker's shares up nearly 5% in Paris trading following the announcement.

Ram Surges While Jeep Falters

The transatlantic automaker sold 324,277 vehicles in the U.S. during the quarter, a marginal decrease from the 324,825 units sold in the same period a year earlier, according to company figures. The stability of the top-line number masks significant divergence among its core brands.

The Ram brand was the clear standout, with sales climbing 29% year-over-year to 134,072 vehicles. This performance was largely driven by a remarkable 73% increase in sales of the popular Ram 1500 model. In stark contrast, the Jeep brand experienced a significant downturn, with deliveries falling 20% to 128,542 units. Several key models saw sharp declines, including the Compass (down 62%) and the Grand Cherokee (down 30%).

Performance Across the Portfolio

Performance across Stellantis' other U.S. brands was varied. The Chrysler brand saw a 6% sales increase to 34,494 vehicles, bolstered by its Pacifica minivan. Dodge sales also edged up 2% to 26,546 units, supported by gains in its Durango SUV and Charger sedan.

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However, the report highlighted ongoing weakness in some areas. Sales for the company's niche Italian brands plummeted, with Fiat down 83% and Alfa Romeo falling 65%. The report also noted very weak demand for certain electrified models, such as the Hornet, which saw sales drop 97%.

Market Reaction and Outlook

Investors reacted favorably to the sales report, focusing on the strength and profitability of the high-margin Ram truck division. The ability of Ram's performance to counterbalance the significant weakness at Jeep suggests a degree of resilience in the company's U.S. portfolio.

Despite the mixed third quarter, Stellantis' total U.S. sales for the first nine months of the year remain up 3% compared to the prior year, reaching 958,463 vehicles. The company stated it expects to focus on execution and growth in the fourth quarter.