Stellantis is going through a difficult period in the United States with declining sales in what remains its main market globally. Sales of Dodge, Ram, Jeep, Chrysler, Fiat and Alfa Romeo decreased by 10 percent in the first quarter of 2024 compared to 2023, and many Stellantis vehicles continue to stay at dealerships for a much longer period than the industry average. According to data from Edmunds.com Inc., their vehicles remain in inventory for an average of 98 days, compared to the industry average of 52.
Stellantis is experiencing difficulties in selling more expensive cars in U.S.
Ivan Drury, director of insights at Edmunds, said that the major obstacles to sales for the automotive industry are exacerbated for Stellantis due to its high selling prices. Drury said that at the peak of the COVID-19 pandemic, people were buying many more vehicles priced over $50,000 compared to lower-priced ones. Now the situation has reversed, with more people looking for more affordable options. “Every automaker with expensive products is having problems,” he said.
During the recent press conference on the results of the first quarter of 2024, Stellantis CFO Natalie Knight explained that the company is in a transition period. “One of the things we’re really trying to do in North America is look at the market in general, we’re trying to figure out how to make our prices more attractive to consumers, but be able to maintain a high level,” she said.
For example, Jeep, leader in terms of volumes for Stellantis, cut prices earlier this year after sales declined by 6% last year. “Inflation has been a heavy blow to families and people here in the United States, we had to do something,” said Antonio Filosa, head of the Jeep brand.
But these price cuts for Stellantis also involve other brands. For example, the Dodge Durango is now offered for up to $4,000 less, some 2024 Ram 2500 and 3500 models are offered with discounts up to $9,000, and the Chrysler Pacifica with a discount of up to $2,660 for the plug-in hybrid and $2,000 for combustion-powered versions.
Among the Stellantis models still in production, those that stayed at dealerships the longest in April were the Jeep Grand Wagoneer, averaging 166 days, the Jeep Gladiator for 138 days and the Grand Cherokee 4xe plug-in hybrid, up to 137 days, according to Edmunds data.
Drury said the Gladiator pickup is a good example of a Stellantis vehicle that for now seems out of sync with the current market, especially considering the average transaction price of about $57,000. Gladiator sales fell 4% in the first quarter compared to last year. Jeep plans to soon release a plug-in hybrid version of the model that could help its sales.