Stellantis is in Trouble in the US

Stellantis is in trouble in the US. In August, 6 out of 10 vehicles with the highest Market Day Supply (MDS) were Stellantis vehicles. Meaning – these vehicles are sitting unsold at dealerships the longest, and inventory is stacking up on itself. US dealers sent a formal/unified letter to Stellantis CEO, Carlos Tavares, saying that he has steered the US brands towards eminent disaster. Paraphrased, the response they got back was, “It’s not nice to talk about your CEO like that.” (See letter below)

The Stellantis silver lining?

1) Right now, there are likely good deals to be had on Jeeps, RAMs, Alfas, and a Dodge Hornet… as if there was ever a good enough deal on a Hornet. 2) The other silver lining: Stellantis is not alone. Volkswagen is in trouble too. Just last month, Volkswagen CFO said they have “1… maybe 2 years” to get back on track – straight from the horse’s mouth. At least VW executives seem to be aware of their situation.

It’s also worth noting that on the positive end of the market day supply (MDS) spectrum, Toyota/Lexus dominated September with 9 vehicles on the top-10 list. Meaning, Toyota/Lexus demand meets or exceeds inventory, and those vehicles don’t sit on dealer lots for long. I guess it pays to stay authentic & in-touch with your customers.

Make no mistake…

These are repercussions for certain automakers absolutely not listening to (or respecting) their customer-base for the last 4 years. For killing the vehicles we want, and for cramming vehicles we do not want down out throats, at a price we are not willing to pay. And furthermore – for being pompous & out-of-touch about it… as if consumers will eventually enlighten themselves & come around to overpriced, over-regulated, undesirable products. And/or that the government will force us to comply.

Stellantis is tanking the American Mopar brands…

Dodge has committed suicide. And Dodge’s revered CEO, Tim Kuniskis, saw himself out the door. When he left, he also left RAM, and RAM is now 26% down on sales in the first half of 2024. Chrysler only makes ONE vehicle these days (the Pacifica). Dodge only makes TWO (the Hornet and Durango). And even Jeep has had production halts on the Wrangler & Gladiator. It’s crazy to me – that you can take just about any Joe Dirt out the sticks, and they can see the errors with complete clarity. But for some reason, CEO Tavares can’t seem to figure it out… or isn’t concerned. I guess 40-million has a way of diminishing concerns.