Stellantis (NYSE:STLA) is facing turbulence as global shipments dropped by 20% in Q3 2024, a decline driven by deliberate production cuts and temporary gaps in its product lineup. North America saw a sharp drop of over 170,000 units due to pre-announced production reductions aimed at managing dealer inventory. Despitethis, Stellantis managed to grow its U.S. market share from 7.2% in July to 8.0% in September. This balancing act, while positive on one front, underlines the company's broader struggle with an evolving industry landscape.

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In Europe, shipment declines were tied to delayed launches on the Smart Car platform, but the company is banking on strong demand for new models like the Citroen C3 and Peugeot 3008 to reinvigorate sales. The outlook for Europe remains optimistic as orders for these models hit significant numbers, but challenges in other regions, particularly the Middle East, Africa, and Asia-Pacific, have weighed on overall performance.

Amid these operational pressures, Stellantis has announced a sweeping leadership change. Chief Financial Officer Natalie Knight will be replaced by Doug Ostermann, while CEO Carlos Tavares is set to retire by 2026. With the stock price down by 44% this year, these moves reflect a pivotal moment for Stellantis as it seeks to stabilize performance and shift towards multi-energy offerings. The leadership shake-up signals Stellantis' intent to prepare for what CEO Tavares calls a Darwinian period for the automotive industry, aiming for a future-driven turnaround with its new-generation vehicles.

This article first appeared on GuruFocus.