and Dodge’s parent company, Stellantis, will offer hefty discounts and reduce output as it looks to reverse plunging US sales. Stellantis warned of significantly lower profits this year as US sales fall. It’s also facing rising low-cost competition from China globally.
Following rival Volkswagen, Stellantis is the latest legacy automaker to cut financial guidance for the year. Although Stellantis is Europe’s second best-selling auto brand, the company is falling behind in the US. It’s also facing rising competition from Chinese automakers like , which are aggressively expanding overseas.
The company is working to restore normal US inventory levels. By the end of 2024, the automaker aims to have no more than 330,000 units of dealer inventory, earlier than its initial Q1 2025 deadline. Stellantis said it would introduce significant discounts on 2024 and older model-year vehicles while slashing US output to clear excess inventory.
The company now expects an adjusted operating profit of between 5.5% and 7% in 2024, down from its prior “double-digit” guidance. The move comes after Stellantis’ US brand sales plunged 21% in the compared to Q2 2023.
Ram (-26%), Dodge (-16%), and Jeep (-9%) sold significantly fewer vehicles compared to last year. Jeep has already slashed prices on several of its top-selling vehicles, including the Grand Cherokee, Gladiator, and Wagoneer, in an effort to boost sales. However, CEO Antonio Filosa said more could come by the end of the year.
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