Summary
- Stellantis to offer discounts and reduce output due to plunging US sales
- Stellantis facing low-cost competition from China globally
- Automaker working to restore normal US inventory levels by 2024
- Jeep cutting prices on top-selling vehicles like Grand Cherokee and Wagoneer to boost sales
- Stellantis planning to launch several new electric vehicles across its brands, including Wrangler-inspired Recon EV and Renegade EV under $25,000
Article
Stellantis, the parent company of Jeep and Dodge, is facing plunging US sales and has issued warnings of significantly lower profits for the year. In response to the declining sales, the company plans to offer hefty discounts and reduce output in an effort to clear excess inventory and boost sales. Stellantis is falling behind in the US market and facing increased competition from low-cost Chinese automakers such as BYD.
The company aims to restore normal inventory levels in the US by the end of 2024 and plans to have no more than 330,000 units of dealer inventory by that time. To achieve this, Stellantis will introduce significant discounts on 2024 and older model-year vehicles while reducing US output. The company has adjusted its operating profit guidance for 2024 to between 5.5% and 7%, down from its previous “double-digit” guidance.
Jeep, one of Stellantis’ brands, has already reduced prices on several top-selling vehicles, including the Grand Cherokee, Gladiator, and Wagoneer. More price cuts are expected by the end of the year as the company seeks to increase sales. The upcoming launch of Jeep’s first global electric SUV, the Wagoneer S, is also expected to play a key role in revitalizing sales in the US market.
In addition to Jeep, Dodge and Ram, both Stellantis brands, are also entering the electric vehicle market. Ram will launch its first electric pickup, the Ram 1500 REV, later this year, while Dodge has opened orders for the 2024 Charger Daytona EV. Stellantis is focusing on introducing a variety of electric vehicles across its brands to appeal to a wider range of customers and help boost sales.
Stellantis CFO Natalie Knight has stated that reversing slumping US sales and addressing rising inventory levels is a top priority for the company. The company is also in search of a successor for CEO Carlos Tavares, whose contract expires in 2026. The introduction of electric vehicles across Jeep, Dodge, and Ram brands is seen as a key strategy in helping to reverse falling sales and build momentum for the company’s turnaround plan.
As part of its Dare Forward 2030 initiative, Stellantis aims for 50% of US passenger and light-duty truck sales to be electric by 2030. The company’s board of directors is set to meet in October 2024 to develop a comprehensive turnaround plan that includes the introduction of more electric vehicles. Stellantis is hopeful that the shift towards electric vehicles will help revitalize the Jeep, Dodge, and Ram brands in the US market and drive future growth for the company.
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