But competitors are doing far better.
A new report from Cox Automotive digs into what’s going on with Stellantis car sales in Q1 2023 and it’s not great news. The US is perhaps the most important market for brands like Jeep, Dodge, and Ram but shoppers have been scarce and dealer inventories are swelling, with some retailers trying to hide that fact.
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As Cox rightly points out, Stellantis reported a 9% drop in sales for Q1 2023. That can’t be blamed on inventory problems now that those are fading in the rearview mirror. What’s even more troubling is overall car sales were actually up 8% during the first quarter of the year. Perhaps softening the blow a little was the average Stellantis transaction price increasing 4%. However, that might not last much longer.
Shockingly, part of what’s fueling the drop for Stellantis is weak Jeep sales. It wasn’t that long ago Jeep was one of the most envied brands in the industry, a shining star everyone wanted to emulate. Sales of Jeeps plummeted 20% for the quarter and hit a level the brand hasn’t seen in the past six years.
Before you start blaming the Ford Bronco for robbing Wrangler sales, Cox puts the blame on three models: the Grand Cherokee, Wagoneer, and Grand Wagoneer. All three suffered big sales drops. That’s a problem considering they’re the most premium, and most expensive, model lines Jeep offers. Perhaps consumers are cooling to the idea of driving a luxurious Jeep?
While Dodge experienced a 24% increase in sales for Q1, its nearly 51,000 units are a mere shadow compared to what Jeep should have moved. Plus, with the muscle car party going out the door, the appeal of Dodge should take a big hit soon, making volume sales through Jeep even more important.
Ram also experienced a sales slide of 8%, so not as dramatic as Jeep but enough to be troubling. The shining star for the brand was the Promaster van at a 90% sales bump, showing the commercial market is still going strong. However, Ram 1500 sales plummeted 17%.
The big question is what did Stellantis do or not do differently than the competition? Cox spends time in its analysis looking at the company rolling back incentives, but was that the sole reason for the sales drop? And can the automaker adjust its strategy to avoid a disappointing Q2 2023?
Images via Stellantis
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