Stellantis' year-end inventory plan meets a softer used market

AT THE DESK

Stellantis sets its year-end inventory target

Stellantis is putting a year-end marker on North American inventory: management expects December levels to converge with December 2025 and anticipates a broadly stable fourth-quarter pricing environment versus the third quarter. Those are company expectations in this morning's results release, not announced dealer allocations or incentive schedules. (Stellantis)

The financial backdrop explains why that plan deserves attention. Stellantis reported negative €4.0 billion in industrial free cash flow for Q3, alongside €0.3 billion in adjusted operating income and a €0.5 billion net loss; those are three different measures, not interchangeable descriptions of profit. (Stellantis)

The company attributed lower North American revenue to planned production downtime and expects higher consolidated shipments in Q4 than Q3. It also reiterated a focus on aligning production with demand. (Stellantis) Higher shipments and inventory discipline can coexist, but the useful dealer question is which vehicles arrive, when, and at what carrying cost.

For Florida Chrysler, Dodge, Jeep and Ram operators, this is a reason to put inbound orders beside model-level aging and sales pace before November commitments. A companywide inventory target cannot tell you whether your particular truck or SUV mix is balanced.

Our read: watch the order pipeline and actual program changes, not just the turnaround headline. A better adjusted operating result is not a reason to relax your own stocking discipline.

THE BUSINESS OFFICE

Asbury: more gross per used car, fewer cars sold

Asbury's October 27 results offer a useful dashboard check: Q3 same-store used retail gross profit per vehicle rose 10% to $1,777, while used retail units fell 6% from a year earlier. Same-store new-vehicle gross profit per unit fell 12% to $2,901. (Asbury's results)

Fixed operations showed another split: same-store parts-and-service revenue rose 1%, but gross profit declined 2%. These are Asbury's comparable-store results, not a Florida market average. (Asbury's results)

The takeaway isn't to copy another group's targets. It is to keep units, gross per unit and total departmental gross on the same page; improving one can hide deterioration in another. For the service drive, revenue growth alone is not enough to tell you whether more work is producing more profit.

ON THE LOT

Older inventory deserves a fresh look

Black Book's October 27 report shows wholesale values falling 0.71% in the week ended October 24, with declines across every reported car and truck/SUV segment. Among 8-to-16-year-old vehicles, midsize cars fell 0.78% and subcompact cars 0.95%, sharper drops than the previous week. (Black Book)

The report also estimates used-retail days-to-turn at roughly 38 days, with active listings rising and retail asking prices softening. Its wholesale measures and retail-listing indicators describe different parts of the market, not a single transaction-price series. (Black Book)

Before buying another older, lower-priced unit, revisit the recon estimate and likely time to sale. An affordable acquisition price does not eliminate holding-cost or reconditioning risk.

THE BIG PICTURE

GM names a plant for future hybrids

GM said October 27 that it intends to prepare Lansing Delta Township for future hybrid-electric production, with nameplates and timing to come closer to launch. The site currently builds the Chevrolet Traverse, GMC Acadia and Buick Enclave; GM also says an existing federal manufacturing grant is being restructured for the hybrid work. (GM)

That is a concrete manufacturing commitment, but not confirmation that all three current SUVs will receive hybrid versions. Florida GM stores can use it as a planning signal while keeping customer delivery promises tied to actual product announcements. The practical distinction is between preparing the business for a broader powertrain mix and selling a vehicle whose launch details have not been released.

QUICK READS

• October's sales outlook: Cox's October 27 forecast puts U.S. new-vehicle sales near 1.38 million and the annualized selling pace at 16.1 million, with 28 selling days helping the monthly total. These are forecasts covering the national market, not completed results or Florida retail traffic. (Cox Automotive) Compare your own sales per selling day and model mix before treating a bigger monthly total as faster demand.
• Mazda simplifies the names, not the seating choices: Mazda's October 27 announcement says two-row versions of the 2027 CX-90 will replace the CX-70 in the U.S.; the two-row option is limited to specified Turbo Premium Sport and Turbo S Premium Sport trims. (Mazda) Inventory listings and BDC conversations should identify the actual seating configuration rather than assume every CX-90 has a third row.