Jeep and Dodge Hit Panic Mode
In a bold move to combat plummeting sales in the U.S., Stellantis — the parent company of automotive brands including Jeep, Dodge, Ram, and Chrysler— has announced that it will offer discounts on 2024 and older model-year vehicles through the end of the year.
The announcement comes as the company works to shrink its ballooning inventory over the coming months.
Stellantis scrambles to remedy declining U.S. sales
Stellantis recently reported a 21% year-over-year drop in U.S. brand sales during the second quarter of 2024, sending its stock price tumbling as the company looks to reverse the trend through greater discounts for prospective buyers. Jeep, Ram, and Dodge all reported notable declines, with Ram sales down by 26%, Dodge by 16%, and Jeep trailing behind with a 9% decrease.
Stellantis brands, including Dodge, Ram, Chrysler, Alfa Romeo, and Jeep, have inventory levels significantly above the industry average, according to recent data from Kelley Blue Book. The parent company aims to normalize U.S. inventory levels over the coming months, targeting a maximum of 330,000 units by the end of 2024 — an ambitious goal moved up from an initial deadline of early 2025.
To achieve this, the company plans to reduce U.S. shipments by over 200,000 vehicles in the latter half of the year. With the inventory issue being critical, Jeep has already cut prices on several of its best-selling models, including the Grand Cherokee and Wagoneer. However, the company’s CEO, Antonio Filosa, hinted that further price reductions could be on the way as the year draws to a close.
Will a surge of new EVs electrify sales?
Stellantis is betting on a new lineup of electric vehicles to reignite interest and boost sales. This fall, Jeep will introduce its first global electric SUV, the Wagoneer S, starting at $71,995. A more budget-friendly Renegade EV is also coming, with pricing expected under $25,000.
If General Motors’s most recent earnings report is any indication, introducing more EV models could help reverse Stellantis’s sales slump. GM recently reported a 3% increase in year-over-year sales, with record EV sales driving the success.
Stellantis’s board is scheduled to meet in October to devise a comprehensive turnaround strategy, including expanding its electric vehicle offerings as part of the Dare Forward 2030 initiative. The goal is for electric vehicles to constitute 50% of U.S. sales by 2030.
Final thoughts
As the competition intensifies and consumer preferences shift, Stellantis is taking decisive steps to remain relevant in an ever-evolving market. While the coming months may be rocky for the company, Stellantis’s strategy of significant discounts and a renewed focus on electric vehicles might be the lifeline its brands need to regain traction in the U.S. auto industry.
For prospective buyers eyeing a Dodge, Jeep, or other Stellantis brand vehicle, look for some sweet deals later this year.
Related: When can consumers expect car loan interest rates to drop?
