It’s time of crisis in the United States for Stellantis. Retailers are reckoning with a sharp drop in sales due to lower-than-expected demand and stockpiling. Concerned about the situation, they issued an SOS to the automaker, which promptly responded with price cuts and customer incentives.
Sales slump for Stellantis in the U.S.: parent company runs for cover with discounts and bonuses
Stellantis dealers in the United States have been facing a rather difficult situation lately. This is because there has recently been a significant drop in demand beyond the expectations that the automotive group had created for itself. This peculiar happening, combined with an inventory buildup of models that have been little by little less in demand, the whole thing is generating a lot of concern to the point that the automaker needs to take immediate action.
This ongoing event’s main reported problem was the shortage of fittings that customers seemed to have requested for some of the automaker’s main models. This turned into an obstacle that caused a very negative impact on the sales of most of the group’s brands in the first six months of the current year. Going into the details of the recorded data, one can fully understand the concerns. Ram and Dodge, for example, recorded sharp declines of 26 percent and 16 percent, respectively, in comparison with last year. At the same time, the exit from the car market of models such as Renegade and Cherokee have left a gap in the entry-level category.
Stellantis responds to the issue with discounts and bonuses: up to $6,000 in savings for customers
Faced with this not at all unsympathetic problem, all dealers involved have certainly not been sitting back and waiting. The National Council of Stellantis Dealers urgently requested a meeting with CEO Carlos Tavares, with the intention of opening a constructive dialogue that led to solutions that should be concrete.
Stellantis has been absolutely quick to react in this matter by making significant price cuts available to customers. For example, discounts as high as $4,000 were displayed on the Grand Cherokee. In addition, the “Summer Select Inventory Bonus Cash” program was launched, making cashback available to buyers of up to $2,000.
Kevin Farrish, chairman of the Stellantis National Dealer Council, said the team is working closely with Stellantis management to improve service to its customers, offering them the desired product mix at competitive prices, with the intent of closing the gaps experienced in recent periods. he added that the effort will continue to be put forth, working as a united team to try to resolve these issues, while maintaining a focus on benefiting customers.
This meeting that took place with the management of the Stellantis Group certainly had a timely effect. In close cooperation with the dealers, we will see if this strategic plan will be able to counteract the recorded decline in sales, trying to regain the market share that has been completely lost. The major focus now, is on strategically reassorting the inventory of cars, in order to make available to dealers the models that are most in demand, so as to meet customers’ needs. As the months go by, we will surely know whether these measures taken will be sufficient to counter this negative phenomenon. Definitely, Stellantis’ promptness in finding a remedy in a short time has a lot of chances to fix the situation.