Stellantis (STLA) reported third quarter revenue and shipments that missed estimates, though the company said changes it's implemented to grow the business are working.

Stellantis, which does not issue a full reports other than first half and full year, reported Q3 revenue of €33.0 billion ($35.8 billion), versus estimates of €35.94 billion ($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 billion, 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 modes, 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 Osterman said in a statement.

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

“We’re grinding through a transition here,” Osterman said. Shares were up 2% in pre-market trading.

Osterman, 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. Jeep CEO Antonio Filosa would also add North America chief operating officer to his duties, succeeding Carlos Zarlenga.

Stellantis reiterated its 2024 financial guidance, which was updated at the end of September. Stellantis sees 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” 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, all-new, all-electric Ram 1500 REV; and Ram 1500 Ramcharger range-extended EV pickup, will be coming soon.