Stellantis: High MDS and abundant inventory for some of its top models, such as the Dodge Hornet and Jeep Grand Wagoneer. Never-before-seen discounts and buying conditions. An in-depth analysis of CarEdge.com data reveals the vehicles longest on the lots.
Stellantis, the U.S. market
The car market in the United States is experiencing a period of great and continuous evolution, with one of the big players being Stellantis, one of the largest manufacturers in the world. At present, the situation that has arisen for the company is that it is facing an oversupply with regard to some of its most prestigious models. From the most recent data from CarEdge.com, there would be five vehicles from Stellantis that would regularly find themselves in the top five on the list of models with the longest sales lead times, this as far as the U.S. market is concerned. A situation that could present itself in a negative way for the company, but for consumers it is about to be a valid opportunity to buy a vehicle, next we see the reasons why.
The ranking of models with the longest sales times
Analyzing the top five places in the ranking then, we find in first place by far the Dodge Hornet, a Market Day Supply (MDS) of as many as 428 days. This means that on average, a Hornet car stays inside dealers for over a year before being sold. Inventory for this model is quite high, or 14,000 units, with an excellent negotiating offer for consumers. Also in second place in this particular ranking is the Jeep Grand Wagoneer, which also has an MDS of 428 days, ranks on par with the Hornet. The inventory of this model is significantly lower than the Hornet, i.e., by 2,200 units, which is a great opportunity for those who would like to take possession of a high-end vehicle on significantly more favorable terms.
Continuing the ranking of cars in the top five places we also find the two Maserati Levante and Grecale. The Italian brand’s two SUVs found an MDS of 410 and 370 days, respectively. These also represent a good opportunity for consumers because of the potential discounts that can be obtained and the wide choice of configuration of these valuable models. Closing out the top 5 is the Grand Wagoneer L, which closes the ranking of Stellantis models with an MDS of 354 days.
High MDS for buyers
But what does it really mean to have a high MDS for buyers? Let us explain in detail this particular situation that has arisen for Stellantis group models. First of all, MDS is a possible acronym for a measure of supply-demand imbalance. Basically, when one finds a high MDS for a particular car model, it takes on two precise meanings. The supply of the product is much higher than the demand is, this translates into overproduction of the model. It also means that of that same product, there are many more examples on the market than the consumer wants.
Continuing, a high MDS causes several consequences. The first is certainly a reduction in prices, resulting from the company in question trying to sell the surplus. In fact, one often finds oneself having to drop product prices, resulting in lower-than-normal profit margins. Another factor that is caused is an increase in inventory, which companies find themselves obliged to stock, which causes additional operating costs. In addition, profits can be seen further reduced when companies absolutely must dispose of excess units by offering very aggressive promotions. Another not insignificant problem caused by high MDS is that of experiencing difficulties in launching new models of the car. In fact, with warehouses full of the excess products, companies may be forced to forego launching new models, with the fear of making the situation that comes with stockpiling even worse.
Stellantis production surplus – benefits for buyers
Although it is not exactly a positive situation for companies, this presents several opportunities for consumers who may often have a desire for a car that may sometimes be priced too high under normal circumstances. Buyers then, when such a situation arises, can move in several ways. Start by doing extensive research, comparing prices and offers made available by different dealers. Put themselves in a position to negotiate, given the situation that has arisen for the company. Also consider less popular models, which can sometimes present even more cost-saving opportunities.
The surplus that has been created for the Stellantis models we have been talking about is certainly a very tempting opportunity, to say the least, for consumers who can in this way take advantage of even prized vehicle purchase situations at more favorable rates. Obviously, those who are interested in the advice are to act in a fairly timely manner as companies work to evolve this situation as soon as possible.