Stellantis (STLA) reported third quarter revenue and shipments that missed estimates, though the company said it's making "progress addressing operational issues."

Stellantis reported Q3 revenue of 33 billion euros ($35.8 billion), versus estimates of 35.94 billion euros ($39.1 billion), as compiled by Bloomberg. The company said revenues slipped 27% compared to a year ago due to “lower shipments and unfavorable mix as well as pricing and foreign exchange impacts.”

The automaker — which counts Dodge, Jeep, Ram, and Fiat among its brands — posted global shipments of 1.148 million, down 20% versus a year ago. Stellantis said its shipments are not where the company expected to be and said the decline was due to production gaps between new and old models, planned North American inventory reductions, and “challenging” European market conditions.

“While Q3 2024 performance is below our potential, I’m pleased with our progress addressing operational issues, in particular U.S. inventories, which have been reduced meaningfully and are on track for year-end targets, as well as stabilization of U.S. market share,” CFO Doug Ostermann said in a statement.

On a positive note, the company said it had reduced total inventory by 129,000 vehicles, including an 80,000-unit reduction in North America, which moved toward its goal of a 100,000-unit reduction by the end of November. On the Q3 call, Ostermann said October sales were trending 10% better than September.

“We’re grinding through a transition here,” Ostermann said. Stellantis shares closed up 3% on Thursday.

Ostermann, who only just replaced outgoing CFO Natalie Knight in mid-October, was another new face at Stellantis. The automaker also said that CEO Carlos Tavares would be retiring after his contract ends in 2026. Additionally, Jeep CEO Antonio Filosa will be adding North America COO to his duties, succeeding Carlos Zarlenga.

Stellantis reiterated its 2024 financial guidance, which was updated at the end of September. Stellantis sees an adjusted operating income margin of between 5.5% and 7% for the fiscal year 2024, down from prior “double digits,” with two-thirds of this hit coming from actions taken in North America. Industrial free cash flow is now expected to come in at a loss of 5 billion euros to 10 billion euros ($5.58 billion-$11.17 billion), a drop from the “positive” range it had seen prior.

In terms of new product launches for the US, the company said the all-electric Dodge Charger Daytona, all-electric Jeep Wagoneer S, new all-electric Ram 1500 REV, and Ram 1500 Ramcharger range-extended EV pickup will be coming soon.