Stellantis’ Challenges Present Opportunities For Buyers

Stellantis is currently navigating a series of challenges that could benefit those who are looking to get behind the wheel of a new vehicle. As the company faces significant inventory issues, cost-cutting measures, and declining sales, potential buyers may find themselves in a favorable position at Chrysler, Dodge, Jeep®, and Ram dealerships.

A Difficult Quarter for Stellantis – 

Stellantis recently reported its Q3 2024 performance, which revealed a steep decline in both sales and revenue. The company’s global revenues fell by 27% to $36 billion (approximately €33 billion) compared to the same period last year. Worldwide car sales dropped by 20%, with North America experiencing a staggering 36% decrease. In Europe, sales declined by 17%, with similar drops reported in other regions, including the Middle East, Africa, and Asia-Pacific.

Despite these challenges, Stellantis is working diligently to address its inventory issues. Doug Ostermann, the newly appointed Chief Financial Officer (CFO) stated, “While Q3 2024 performance is below our potential, I’m pleased with our progress addressing operational issues, particularly U.S. inventories, which have been reduced meaningfully and are on track for year-end targets.” The company aims to reduce its dealer inventory from over 430,000 vehicles to 330,000 by the end of 2024.

Opportunities for Buyers – 

These inventory challenges may present a golden opportunity for consumers. As Stellantis aims to roll out new models like the all-new, all-electric Dodge Charger Daytona and Jeep® Wagoneer S, dealerships are eager to clear out older stock. Ostermann indicated that “lowered inventory levels help dealers become more profitable partners and better able to support the launch of exciting new products.”

To facilitate this, Stellantis has been implementing customer-facing incentives and discounts. For instance, select 2024 Jeep Compass and Wrangler models currently feature discounts of $3,000, while certain Grand Cherokees are discounted by $6,000. The Gladiator midsized pickup has seen a price reduction from $37,895 to $34,106, reflecting the company’s push to move excess inventory.

Tennessee-based Stellantis dealer Doug Wilson commented, “It’s hard to order 2025s when you’ve got a lot full of ’23s and ’24s.” This sentiment highlights the urgency among dealers to sell existing inventory, ultimately benefiting buyers looking for deals.

With incentives and discounts available on various models, now might be the perfect time to explore options from Stellantis brands. As the company continues to address its challenges, consumers can take advantage of favorable pricing and promotions.

Source: Automotive News