Jeep parent Stellantis stalls out in the US as carmakers struggle to get off the lot
In Jeep doo-doo… Dodge maker Stellantis needs a tow. The company — which also owns Jeep, Chrysler, and Ram, among others — sold 20% fewer cars in the US than last year. That’s expected to be the worst third-quarter result among major automakers and continues a yearslong sales slump for Stellantis. Its US deliveries were already down 16% in the first half of the year, and last year it was the only major American car company to report falling sales.
Bended fenders: Chrysler and Dodge fared the worst, with each experiencing a 40%+ sales drop-off last quarter. Ram trucks slid 19% and Jeep 6%.
Check engine: This week Stellantis cut its annual guidance and recalled nearly 200K hybrid Jeeps over fire risks. Its shares are down 40% this year, and its US market share has fallen to 8% from 10 a year ago.
Lot pileup: Stellantis dealers have blamed the company for swollen inventories. Meantime, the UAW is pushing to authorize another strike against the automaker, accusing it of breaking contract promises.
Car-industry wrap… Analysts expect that US new-vehicle sales fell about 2% last quarter, as consumers balked at high prices. GM’s US sales dipped 2%, while Toyota’s fell 6%. Ford’s sales ticked up, barely. But EVs were a bright spot for carmakers including GM and Ford, and yesterday Tesla reported its first growth in deliveries since last year.
Sticker shock is sticking… The average new ride in the US was $44K last month, down 3% year over year. But that’s still much higher than before the pandemic (at the end of 2019, new vehicles cost about $34K). Car costs have driven up demand for leases, which made up a quarter of new sales in Q3. Used-car sales are up, too, as folks steer clear of shiny new whips.