Stellantis and Its Dealers Forced to Cope with Excess Inventory

Lower Prices On Select Models Coming...

Since the end of the pandemic, the auto industry has experienced record profits, driven by high sales and unprecedented monthly payment rates due to low inventories. However, the market dynamics are shifting rapidly, and Stellantis finds itself facing an overabundance of inventory, a stark contrast to its previous situation.

Market Dynamics Shift – 

2024 Dodge Durango R/T Blacktop AWD. (MoparInsiders).

In the immediate aftermath of the pandemic, auto companies thrived on high transaction prices and minimal incentives. The market has since taken a turn, fueled by even higher interest rates, inflation, and climbing vehicle prices. Now, Stellantis is struggling with excess inventory that would have been easily sold over a year ago. As a result, numerous Stellantis vehicles are sitting idle on dealer lots.

Consumer Impact – 

Ivan Drury from Edmunds Automotive highlighted in an interview with Local 4 Detroit Business Editor Rod Meloni the challenge for consumers: while a wide selection of vehicles with specific features is advantageous, it becomes problematic if these vehicles are unaffordable. Rising interest rates have made monthly vehicle payments prohibitively expensive for many, leading to potential loan denials or consumers simply being unable to afford payments that exceed $1,000 a month.

Currently, Stellantis vehicles spend about 100 days on dealer lots, compared to the industry average of 50 days. The company also faces challenges with its average transaction prices, with most vehicles priced well above $30,000. Unfortunately, Stellantis only has one vehicle in its American portfolio that sits below the $30,000 with the 2024 Jeep® Compass Sport 4×4 with a starting MSRP of $27,495 (including destination).

Erin Keating from Cox Automotive told Meloni, that Stellantis vehicles are about 120% to 125% above the average transaction price of vehicles from other automakers. The situation presents opportunities for consumers seeking deals. With Memorial Day around the corner, dealerships are likely to offer significant discounts to clear out older inventory.

Stellantis’ Response – 

2024 Dodge Hornet R/T eAWD Blacktop. (MoparInsiders).

In a response, Stellantis released a statement saying…

“Our incentive strategy remains aggressive, and focused on region opportunity. New retail strategies provide additional flexibility for our dealers, to focus offers where they think they can maximize sales and address older inventory.”

New Price Reductions – 

2025 Ram 1500 Laramie Sport next to a 2024 Ram 1500 Limited Longhorn. (MoparInsiders).

Stellantis has also announced price reductions on several models:

These measures, however, may not be enough to counter the broader market challenges Stellantis faces, although they do provide a good starting point. The evolving market landscape demands a more adaptive and robust approach.

With three new battery-electric vehicles (BEVs) launching this year, it will be interesting to see if Stellantis will offer competitive pricing compared to their internal combustion engine (ICE) counterparts, or if they will continue with premium pricing. If the latter, these new BEVs might end up sitting on dealership lots alongside the current excess inventory, further complicating the company’s strategy to balance supply and demand.

Source: Local 4 Detroit / WDIV

Robert S. Miller

Robert S. Miller is a diehard Mopar enthusiast who lives and breathes all that is Mopar. The Michigander is not only the Editor for MoparInsiders.com, 5thGenRams.com, and HDRams.com but an automotive photographer. He is an avid fan of offshore powerboat racing, which he travels the country to take part in.

Related Articles

Loading new replies...

Most of the cars need a $15K price reduction before the incentives

Reply 4 Likes

My son in law just bought a 2024 Jeep 4Xe Wrangler Rubicon. He wanted to get gas powered, but dealer stated it would take six months and hard balled him into the hybrid. Still sticking it to customers. New York is such a painful place to live.

Reply 4 Likes

My son in law just bought a 2024 Jeep 4Xe Wrangler Rubicon. He wanted to get gas powered, but dealer stated it would take six months and hard balled him into the hybrid. Still sticking it to customers. New York is such a painful place to live.

The Wrangler 4Xe has an IC engine. If one takes the time to learn how the system operates, they will discover how adaptable the hybrid system is.

Reply Like

The is a big CJDR dealer on Tyson Corrner, VA that advertises discount pricing on the 5th Gen Ram forum. They current have 144 Chargers and Challengers in stock. The number hasn't changed much in the last 2 months.
These cars are advertised as 9 to 10K off sticker and they still can't move them. A local dealer near me has 32 Chargers and Challengers. They moved them to the front row near the highway in the hopes of getting some sales out of the high visibility.
These cars have been out of production for almost 6 months and dealers appear to be loaded with them. Those that wanted last call probably got them. Now they will need to fire sale them to get rid of inventory.

Reply 1 Like

click to expand...

We have a Dodge dealership in northern Connecticut. I purchased my Durango there back in December. Since then, I’ve been getting emails on a biweekly basis, advertising Chargers, Challengers and Durangos at a discounted price. Most Charger SXT’s and Challenger SXT’s are going for about $32 grand, brand new. Sounds like a reasonable price.

Reply Like

Back to top button