Challenges Mount for Fiat and Alfa Romeo Dealers in the U.S.

Chrysler, Dodge, Jeep®, and Ram (CDJR) dealerships in the U.S. are experiencing significant challenges as sales continue to decline across the Stellantis brand portfolio. While these brands are feeling the pinch, dealers representing Fiat and Alfa Romeo are facing even steeper difficulties, leaving many questioning the future of these Italian brands in the American automotive market.

Sales figures indicate a worrying trend for Stellantis brands, with inventories piling up and many dealers struggling to sell vehicles. Some Jeep and Ram dealers report holding onto unsold inventory that isn’t moving as quickly as they had hoped. This stagnation is exacerbated by a broader industry trend of declining consumer interest and changing preferences, leading to concerns about profitability among dealers.

In particular, Fiat and Alfa Romeo dealers are experiencing some of the most challenging conditions. For example, an Alfa Romeo dealership in San Rafael, California, has only six new vehicles on its lot, most of which are older models from 2022. This limited inventory directly reflects declining sales; Stelvio, Alfa Romeo’s top-selling model, saw a staggering 32% drop in sales compared to last year. This trend highlights the brand’s struggle to attract new customers and maintain interest in its offerings.

The situation has been further complicated by the recent closure of one of Northern California’s largest Alfa Romeo dealerships. This dealership’s fate underscores the brand’s challenges, particularly in a key market where it aspires to solidify its reputation as a premium automaker. Alfa Romeo’s overall sales decline is troubling, with many vehicles remaining unsold for extended periods.

Adding to the complexity, Alfa Romeo and Fiat are looking to transition to fully electrified lineups in North America. However, there has been significant pushback against electric vehicles (EVs) in the U.S. due to concerns over inconveniences and costs. As a result, automakers like GM, Ford, Toyota, and Honda are emphasizing hybrids more than fully electric models, making it challenging for Fiat and Alfa Romeo to compete in the current market.

The future looks somewhat brighter with upcoming models slated for release, including the new Alfa Romeo Stelvio and Giulia expected in 2025 and 2026, along with an all-new, all-electric North American-built E-segment SUV in 2027. However, dealers have a palpable sense of urgency to see a sales turnaround before these new models hit the market.

As Stellantis searches for a new CEO to lead the company through these turbulent times, dealers grapple with an increasingly competitive automotive landscape. The situation reminds dealers of the importance of adapting to changing market conditions and consumer preferences to ensure sustainability in an industry marked by constant evolution.

Source: Jalopnik