Stellantis Is In Serious Trouble

If you don’t think things are looking dire for international automaker Stellantis, its report this morning on third-quarter performance should change your mind. It’s not dramatic to say at this time the house is on fire and Stellantis might have to make some drastic changes, possibly dropping brands from its massive portfolio, to stay afloat.

Here’s a bizarre sign all is not well within Stellantis.

The company announced third-quarter revenue has plummeted 27 percent compared to what it did last year, which wasn’t all that great, as covered by The Detroit News. Stellantis has been in a financial tailspin since early 2023, although many either ignored it or thought the automaker would pull out of it rapidly.

Worldwide shipments dropped 20 percent year-over-year, with Stellantis explaining that away as the result of product lineup gaps, European market woes, and an effort to shrink dealer inventories in North America.

But let’s talk about the latter factor. Why are Dodges, Rams, and Jeeps sitting on dealer lots so long? It’s likely a combination of factors, including interest rates, economic uncertainty, and inflation. But competitors are faring better, so what gives?

Part of that could be the French, Italian, and Dutch leadership in Stellantis doesn’t get how to milk those three cash cow brands. We used to have Hellcats, no we have straight-six Hurricanes and an all-electric Charger that makes weird “engine” noises.

The Ram 1500s, including the TRX, have dropped the Hemi V8. Jeep has been focusing on plug-ins and putting weird solar charging stations at otherwise pristine off-road trailheads.

Where is the joy? Where is the rip-roaring fun? That’s what sold so many on these three brands, and now the Europeans have sucked the life out of the party because they think they know better than us silly Americans. You reap what you sow, Stellantis. Let this be an example to others, especially GM and Ford.

Also, maybe Stellantis should take up the offer to sell the American brands to an American investment group since it understands this market as well as a dog understands neurology.  

Image via Stellantis

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