Post by Cool Papa Con on Nov 22, 2024 20:55:29 GMT -6
They’ve made a lot of questionable decisions with the Charger, Chalenger, Cherokee, and others. Now, their Dealers are panicking
Jeep prices have gone through the roof. Buyers are bailing and dealers are furious
What’s crazy to me is them focusing on higher margin vehicles all while being notorious for poor quality.
Cutting the Entry-level Ram 1500 is bananas. Trucks are a totally different sales pitch than the car market. The old saying “Win on a Sunday, Sell on a Monday” was based on higher-end performance selling lower-end volume. If you have a base Mustang, you look to upgrade to that Shelby Cobra someday. It’s the opposite with the Truck.
Trucks are supposed to be tough, job/tradesman oriented. It takes a beating and the scars are badges of honor. The mules sell the image, not the stallions.
Stelantis Execs are clueless to the US Truck Market. Hence why the dealers are freaking out.
Jeep prices have gone through the roof. Buyers are bailing and dealers are furious
The Jeep Gladiator was unveiled to great fanfare by then-owner Fiat Chrysler in 2018, the first pickup model for the hot brand in more than a quarter of a century. And at first it seemed like it might live up to the hype.
After rolling out in 2019, sales doubled in 2020, reaching nearly 90,000 in the US despite pandemic-induced production issues and making it one of the few winners that troubled year.
But the success was short-lived.
After Fiat Chrysler’s merger with PSA Group in early 2021 created Stellantis, the company began focusing on higher-priced, higher-margin vehicles, using limited supplies of parts such as computer chips to build the pricier versions of its vehicles. That left many traditional Jeep and other Fiat Chrysler buyers looking elsewhere.
…
The problems at Stellantis are not limited to Gladiator or even to Jeep. The Ram truck brand has also struggled to keep up with truck offerings from General Motors and Ford. Dodge has cut some of its popular models in anticipation of electric versions. Chrysler, once the company’s core brand, is essentially down to one model, the Pacifica minivan, arguably the weakest segment of the US market.
After rolling out in 2019, sales doubled in 2020, reaching nearly 90,000 in the US despite pandemic-induced production issues and making it one of the few winners that troubled year.
But the success was short-lived.
After Fiat Chrysler’s merger with PSA Group in early 2021 created Stellantis, the company began focusing on higher-priced, higher-margin vehicles, using limited supplies of parts such as computer chips to build the pricier versions of its vehicles. That left many traditional Jeep and other Fiat Chrysler buyers looking elsewhere.
…
The problems at Stellantis are not limited to Gladiator or even to Jeep. The Ram truck brand has also struggled to keep up with truck offerings from General Motors and Ford. Dodge has cut some of its popular models in anticipation of electric versions. Chrysler, once the company’s core brand, is essentially down to one model, the Pacifica minivan, arguably the weakest segment of the US market.
What’s crazy to me is them focusing on higher margin vehicles all while being notorious for poor quality.
The problems at Stellantis are not limited to Gladiator or even to Jeep. The Ram truck brand has also struggled to keep up with truck offerings from General Motors and Ford. Dodge has cut some of its popular models in anticipation of electric versions. Chrysler, once the company’s core brand, is essentially down to one model, the Pacifica minivan, arguably the weakest segment of the US market.
…
And the problem is felt even more acutely among typical Jeep buyers.
Traditionally Stellantis buyers had lower credit scores, which increased their auto loan interest rates and limited their spending power, said Jessica Caldwell, head of industry insights for Edmunds. Those buyers have struggled to keep up with Stellantis’s higher prices.
“They just can’t afford this,” she said. “That’s the wall they’re hitting. Fundamentally they have a product mismatch for the market.”
“They moved to a price point that’s too high for their typical customers,” added Charlie Chesbrough, senior economist for Cox Automotive.
Stellantis also said it would lay off about 1,200 workers at its Warren, Michigan truck plant, coinciding with the discontinuation of the entry-level Ram 1500 Classic pickup. The elimination of a shift at that plant took effect last month.
…
And the problem is felt even more acutely among typical Jeep buyers.
Traditionally Stellantis buyers had lower credit scores, which increased their auto loan interest rates and limited their spending power, said Jessica Caldwell, head of industry insights for Edmunds. Those buyers have struggled to keep up with Stellantis’s higher prices.
“They just can’t afford this,” she said. “That’s the wall they’re hitting. Fundamentally they have a product mismatch for the market.”
“They moved to a price point that’s too high for their typical customers,” added Charlie Chesbrough, senior economist for Cox Automotive.
Stellantis also said it would lay off about 1,200 workers at its Warren, Michigan truck plant, coinciding with the discontinuation of the entry-level Ram 1500 Classic pickup. The elimination of a shift at that plant took effect last month.
Cutting the Entry-level Ram 1500 is bananas. Trucks are a totally different sales pitch than the car market. The old saying “Win on a Sunday, Sell on a Monday” was based on higher-end performance selling lower-end volume. If you have a base Mustang, you look to upgrade to that Shelby Cobra someday. It’s the opposite with the Truck.
Trucks are supposed to be tough, job/tradesman oriented. It takes a beating and the scars are badges of honor. The mules sell the image, not the stallions.
Stelantis Execs are clueless to the US Truck Market. Hence why the dealers are freaking out.
Dealers and workers both furious
Three months ago, the head of Stellantis’ dealer association, Kevin Farris, wrote an open letter to CEO Carlos Tavares.
“We are writing this letter on behalf of the entire US dealer network and its employees,” the letter began. “The intent of this letter is to sound an alarm – an alarm not only to you, but to the Stellantis board of directors, your employees, your investors, and suppliers.”
The Stellantis National Dealer Council had been pleading with the company behind the scenes for two years already, the letter said. The company was headed for disaster – not just for the dealers themselves, but for everyone involved.
“Now, that disaster has arrived,” the letter said.
The company’s relentless focus on short-term profits for 2023 had devastating consequences for Stellantis, Farris wrote. Market share had been slashed nearly in half. The share price was falling. Plants were closing. Thousands were being laid off. Key executives were “fleeing” the company.
“Everyone will suffer the consequences of these disastrous choices,” the letter said.
Three months ago, the head of Stellantis’ dealer association, Kevin Farris, wrote an open letter to CEO Carlos Tavares.
“We are writing this letter on behalf of the entire US dealer network and its employees,” the letter began. “The intent of this letter is to sound an alarm – an alarm not only to you, but to the Stellantis board of directors, your employees, your investors, and suppliers.”
The Stellantis National Dealer Council had been pleading with the company behind the scenes for two years already, the letter said. The company was headed for disaster – not just for the dealers themselves, but for everyone involved.
“Now, that disaster has arrived,” the letter said.
The company’s relentless focus on short-term profits for 2023 had devastating consequences for Stellantis, Farris wrote. Market share had been slashed nearly in half. The share price was falling. Plants were closing. Thousands were being laid off. Key executives were “fleeing” the company.
“Everyone will suffer the consequences of these disastrous choices,” the letter said.
