Jeep Gladiator it was presented with great enthusiasm by the then owner Fiat Chrysler in 2018. It was the first pickup model for this popular brand in over a quarter of a century. After being launched in 2019, car sales doubled in 2020, reaching almost 90,000. In USA despite production problems caused by the pandemic and making it one of the few winners in this difficult year – writes CNN. However, the success was short-lived. After the merger of Fiat Chrysler with PSA Group in early 2021, which resulted in its creation Stellantisthe company began to focus on more expensive, higher-margin vehicles. This caused many Jeep buyers to look elsewhere for new cars.
Sales of the Jeep Gladiator continue to decline
Prices of some Gladiators in US dealerships reach up to PLN 72,000. dollars. As a result, Gladiator sales have declined steadily since their peak in 2020, and are down another 21% this year. Jeep is no longer the same, iconic brand: sales dropped by 36% compared to the pre-pandemic period. Stellantis managed to turn customers away from one of the hottest and most desirable brands by raising prices and mismanaging its offerings.
It’s not just Jeep that’s having problems
Stellantis’ problems aren’t limited to Jeep. The Ram truck brand is struggling to keep up with truck offerings from General Motors and Ford. Dodge has limited some of its popular models. Chrysler, once the company’s main brand, is essentially reduced to one model, the Pacifica minivan.
The day after the U.S. presidential election, Stellantis announced it would reduce the workforce at its Toledo Assembly Complex South plant that builds the Gladiator, laying off approximately 1,100 workers indefinitely. Stellantis also said it would lay off about 1,200 workers at its truck plant in Warren, Michigan, to coincide with the end of production of the Ram 1500 Classic pickup truck.
Stellantis customers are moving towards cheaper models
Virtually every model sold by Stellantis is showing double-digit year-over-year sales declines as high prices have left dealers with unsold models. By the fourth quarter of 2023, the mid-range Stellantis vehicle sold for $58,000 in the U.S., according to Edmunds. dollars – the highest in the industry. Although Stellantis’ average price has since dropped, it was still the second highest average price in the industry at just under $55,000. dollars. In first place is Ford Motor with its luxury brand Lincoln.
In contrast, traditional Stellantis buyers had lower credit scores, which increased their auto loan interest rates and limited their purchasing power, said Jessica Caldwell, head of industry research at Edmunds. These buyers struggled to keep up with Stellantis’ higher prices. “They just can’t afford it,” she said.
Stellantis dealers and employees are furious
Three months ago, the head of the Stellantis dealer association, Kevin Farris, wrote an open letter to CEO Carlos Tavares – writes CNN. According to the letter, the Stellantis National Dealer Council has been pleading with the company behind the scenes for two years. The company was headed for disaster – not just for the dealers themselves, but for everyone involved. “Now this disaster has come,” the letter reads.
The company’s continued focus on short-term profits in 2023 has had disastrous consequences for Stellantis, Farris wrote. Market share was almost halved. The share price was falling. Plants were closing. Thousands of people were laid off. Key directors “ran away” from the company. In response, Stellantis issued a statement that it had taken steps to reduce excess inventory and, as a result, sales improved in the latter part of the third quarter.
At the same time, the United Auto Workers trade union is considering another strike at Stellantis. The union claims that the company is not fulfilling the contract. Stellantis, for its part, denies the accusations and says it will fight any new strike. Farris told CNN that some changes since his open letter, including changes in management positions, are helpful, but dealers are still concerned. He said cutting employment and production was a bad idea.
Stellantis’ problem also is that it no longer has vehicles it once could offer to more entry-level buyers – such as the Challenger car, Cherokee SUV, Renegade SUV and Chrysler 300 sedan. “It’s going to be hard to regain the market share they had,” Farris said. “Many of the products we used to sell are no longer manufactured today.”
