Looking Grim(er) For Stellantis

[BuyHold]

Saw this fascinating article in the Wall Street Journal on Stellantis' decision to cut Wrangler and Grand Cherokee production in response to growing dealer inventories; something many on these forums have discussed. WSJ cites Jeep and Dodge as having a 4 month supply on dealer lots compared to industry average of 68 days.

"Factories temporarily stopped producing the Jeep Wrangler and Grand Cherokee sport-utility vehicles in the past week, people familiar with the matter said. Those models were among Jeep’s bestsellers through the first half of the year.

In a statement, Jeep’s parent, Stellantis, late Wednesday confirmed “production adjustments” at two Detroit assembly plants that make the Grand Cherokee, and another factory in Toledo, Ohio, where the Wrangler is produced. How many days the facilities have been idled couldn’t be determined.

The production cuts come as Stellantis grapples with some of the industry’s highest inventory levels and as sales have sagged, triggering complaints from dealers."

"For months, dealers and Wall Street analysts have blamed Stellantis’s bloated stocks on higher prices and fewer promotions than from rivals."

"Stellantis’s vehicle sales in the U.S. were down 21% through the first six months of the year, compared with a small increase in the broader auto industry."

https://www.wsj.com/business/autos/...ers-grand-cherokees-77b373c0?mod=hp_lead_pos5

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[John VonJeep]

Further context

 

[AustinBlazer]

This matches what I've seen with Jeep dealerships in person overfilled, with the ~554 model2023 year new Wranglers still on jeep.com a few days ago, and the difficulty I'm having putting in a customer order with half doors (possible production halt?)

Makes me wonder if Jeep will halt Wrangler production and then once inventories go down start it up for model year 2025.

 

[Mocopo]

It's worth noting that a week of production halt between model years is normal, so it's possible that's what we're seeing as well.

 

[alphawolff]

I know the folks over at Toledo are beyond sick of the ping-pong attitude from Stellantis. One month they're working overtime to make up for lost production then the next they're laid off. From what I hear morale is rock bottom. Really shows in the build quality we've been getting recently. It's a bad situation all around.

 

[Tncdrew]

I know the folks over at Toledo are beyond sick of the ping-pong attitude from Stellantis. One month they're working overtime to make up for lost production then the next they're laid off. From what I hear morale is rock bottom. Really shows in the build quality we've been getting recently. It's a bad situation all around.

Yep..... unfortunately that explains your build quality comments of late...

 

[Joe Nichols]

Saw this fascinating article in the Wall Street Journal on Stellantis' decision to cut Wrangler and Grand Cherokee production in response to growing dealer inventories; something many on these forums have discussed. WSJ cites Jeep and Dodge as having a 4 month supply on dealer lots compared to industry average of 68 days.

"Factories temporarily stopped producing the Jeep Wrangler and Grand Cherokee sport-utility vehicles in the past week, people familiar with the matter said. Those models were among Jeep’s bestsellers through the first half of the year.

In a statement, Jeep’s parent, Stellantis, late Wednesday confirmed “production adjustments” at two Detroit assembly plants that make the Grand Cherokee, and another factory in Toledo, Ohio, where the Wrangler is produced. How many days the facilities have been idled couldn’t be determined.

The production cuts come as Stellantis grapples with some of the industry’s highest inventory levels and as sales have sagged, triggering complaints from dealers."

"For months, dealers and Wall Street analysts have blamed Stellantis’s bloated stocks on higher prices and fewer promotions than from rivals."

"Stellantis’s vehicle sales in the U.S. were down 21% through the first six months of the year, compared with a small increase in the broader auto industry."

https://www.wsj.com/business/autos/...ers-grand-cherokees-77b373c0?mod=hp_lead_pos5

It's not rocket science! Stellantis needs to lower the price of these vehicles.

 

[jmr]

Start doing large rebates to reduce current inventories. For 2025 make the 3.0 S/O Hurricane a option for the 2025 JL/JT/WL platforms to attract buyers to those models.

 

[Windshieldfarmer]

All companies facing inventory build ups are dealing with at least one, if not all of the following challenges; stale product, poor value, or lack of quality. For the Jeep brand it’s all three.

If Jeep is unwilling to offer significant rebates or discounts I might suggest better warranties. If nothing else it might give potential customers piece of mind about buying a product with a bad quality reputation.

 

[John VonJeep]

Dear Jeep: Bring back the 5.7 Hemi and make it a $5,000 option. You will make more money than Toyota for a couple of years as we all run out and buy new Wranglers.

 

[DUCK01]

I've been looking for a 2dr Sport bare bones manual to replace my Bronco and see more 4xes sitting on lots than any other Wrangler . Jeep keeps pushing them to dealers and they keep building inventory.

 

[ultimateone]

It's not rocket science! Stellantis needs to lower the price of these vehicles.

Yup, they are just way overpriced.

 

[JesseT]

I've been looking for a 2dr Sport bare bones manual to replace my Bronco and see more 4xes sitting on lots than any other Wrangler . Jeep keeps pushing them to dealers and they keep building inventory.

If you're in a CARB state my understanding is they don't stock gassers by default (but you can still order them)

 

[RustyACE]

Makes me wonder if Jeep will halt Wrangler production and then once inventories go down start it up for model year 2025.

I bet the 2024 FE will infact be the FE. I saw a dealership the other day that had 11 FE's sitting on the lot waiting to be bought for $108K.

My FE has so many little extras that make it the best (besides the V8 engine).

About to get interesting. I think the election (no politics in this post or response please) will decide which direction most will go on their next vehicle purchase. Food or Jeep. About to get real interesting which next direction we vote to go.

 

[VKSheridan]

Stellantis is not alone in having excess inventory.

Just about every automaker misinterpreted used vehicle prices as an indicator of pent up demand arising from the supplier shortages a few years back so they overestimated the market.

On top of the insane inflation, add in the high interest rates to the cost of these vehicles built on overtime plus the high cost of freight and you wind up with this mess.

Anyone buying a vehicle right now must either be desperate, delusional or is financially foolish.

TLDR: Inventories are fat because it’s not a good time to purchase/finance anything of significance.

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