Looking Grim(er) For Stellantis

[Wbino]

As long as Jeep is'

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.

You do realize that there is ALOT of money out there, some people are breezing in this economy.
If buying a Wrangler puts someone in financial strain they are looking above their means.

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[Wbino]

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.

I vote food in the Jeep...I love me a drivethru.....
If you buy a Wrangler because it's your right but not in your budget your not brilliant.....

 

[autotragic]

I vote food in the Jeep...I love me a drivethru.....
If you buy a Wrangler because it's your right but not in your budget your not brilliant.....

Nothing like driving down the road in my Jeep while eating a steak dinner. Imagine being one of the poors that has to order a cheeseburger...as if.

 

[Wbino]

Nothing like driving down the road in my Jeep while eating a steak dinner. Imagine being one of the poors that has to order a cheeseburger...as if.

I'm not driving anywhere I park by the beach.
Sand in your steak does suck though.....

 

[2nd 392]

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

Stella appears to be cracking, the local had 3- ICE 24’s , and a 23 High Tide not previously inventoried last visit. No names or sold on the stickers. The Sales Mgr told this curious pest they were “offered”

 

[Mocopo]

there’s no such thing as upsetting customers and making shareholders happy.

If only many instances in the last 4 years didn't directly contradict that statement... but that's a whole other conversation.

 

[2nd 392]

We're on our second 2024 Grand Cherokee Summit after Stellantis replaced the first one for electrical problems. The second one now locks out the ignition for 30 minutes at a time, randomly stranding us. Pretty sure this will be our last GC. So kind of glad they're not making as many, as they still don't know how to build them.

Find a low miles WK2 , not a single problem with my 15, well, not including the unwanted add auto park recall. Heck- I replaced the original battery only about a year ago.

 

[blackwater]

Right? It never occurs to him that people might be getting five-figure discounts and paying cash.

Or, have money and knows life is short!

 

[Wylie E. Coyote]

I know quite a few people who worked at Jeep. Layoffs here and there, threats of closing plants, threats of moving altogether! Tough company to work for and still remain dedicated to the "new" company! What is it, 7 so far?

 

[VKSheridan]

Right? It never occurs to him that people might be getting five-figure discounts and paying cash.

Of course there’s some folks that will pay whatever it takes even if the price is $110K for a Grand Wagoneer but it isn’t buyers with 5 digit discounts paying with cash causing the surplus mate…..

 

[Heimkehr]

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 .

The absence of modestly trimmed Wranglers from dealer lots predates the introduction of the 4xe, and the effect of CARB rules on dealer inventories in those states encumbered by that program (which explains why you're seeing so many of those particular JLUs right now.)

A plain plurality of Jeep buyers want heavily accessorized vehicles, and dealer ordering trends (for lot stock) reflect this preference. I had to custom order my Sport, and would've been very surprised if anything close to its simple configuration was available for immediate purchase.

they need to offer a lengthier finance deal. 36 months is a JOKE!

How so?

 

[Blues Fan 30]

The absence of modestly trimmed Wranglers from dealer lots predates the introduction of the 4xe, and the effect of CARB rules on dealer inventories in those states encumbered by that program (which explains why you're seeing so many of those particular JLUs right now.)

A plain plurality of Jeep buyers want heavily accessorized vehicles, and dealer ordering trends (for lot stock) reflect this preference. I had to custom order my Sport, and would've been very surprised if anything close to its simple configuration was available for immediate purchase.



How so?

Because the majority of people aren't going to be able to afford a wrangler in just 36 months.
Needs to be 60 at least.

 

[Heimkehr]

Because the majority of people aren't going to be able to afford a wrangler in just 36 months.
Needs to be 60 at least.

There's a school of thought advocating strict ceilings on automotive loan terms; e.g., 3 years. This would force the manufacturers to cool their heels on sky-high MSRPs and/or recurrent price increases.

The consumer market would no longer have the ability -- via 4 to 10(!) year loan repayment periods -- to drive home vehicles that they plainly can't otherwise afford. The term "Automotive mortgage" serves as a stark commentary on the self-sustaining state of inflated vehicle pricing trends.

That it's not difficult at all to spend $60K+ on a two door Wrangler is instructive. How many forum members would willingly admit that they wouldn't be able to drive the Jeep they currently do, but for drawn-out repayment periods?

 

[Ratbert]

Because the majority of people aren't going to be able to afford a wrangler in just 36 months.
Needs to be 60 at least.

Are you thinking that it's required to finance through Chrysler / Stellantis?

 

[Brad Hearing]

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

No argument that prices are too high and mistakes are made, but there seems to be an overall slowdown in new vehicle sales in general across almost all brands.

while is is worrying, its not like they are alone here

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