I ordered my JLU for 5% under "invoice", but I'm under no illusion that the dealer wasn't taking profit. As well they should. The light bill won't pay itself.
Sure they are.
My post was sort of a joke, but since it landed flatly I'll move on. Stellantis' net profit margin was 0% in 2020, and only 4% in 2021. Since they've slashed production in 2021, they will struggle to cover the overhead costs of operating its plants. If that is a scheme, it's nothing to brag about.
Stellantis recently reported 11% gross profit margins and no net profit last year. FWP-10% doesn't leave much profit to the corporate parent.
They are likely making some profit from the wrangler line, but not much of one. Wranglers are usually less than 10% of overall Stellantis volume, so the margins would have to be really fat for it to make a difference in the bigger picture. Cherokees and Ram pickups are likely the more important profit generators. I also struggle with seeing wranglers as "cash cows" when their most vocal enthusiasts will only buy them when it results in a loss to either the dealer or manufacturer. Do you know anybody who paid anywhere close to asking price for one? I don't, and Stellantis' P/L statement would be a lot flusher if they did. Their numbers are public information, and they are not pretty. Once in a while Jeep Wranglers will drive a swing in profitability, usually around a model redesign, but not consistently. With respect to dealers, their margin is ~ 8% at MSRP, and a loss can result from selling below 97% of FWP -- but at least they can make it up on trade-ins, service and parts.
It sounds like you're reading financial statements. Of course there is no profit on a financial statement. Any accountant worth his/her salt will tell you that profit on a corporate financial statement is a big no-no. Profit on a financial statement means you have to pay taxes and shareholders really dislike it when corporations pay income taxes. It cuts into their dividends.
70% to 75% of FCA's global profits have been coming from North America; the bulk of that from sales of Rams, Wranglers, Grand Cherokees --NOT Cherokees-- and Gladiators.
That's an easy way to rack up message board likes, but not true in real life. Sarbanes Oxley guarantees jail time for management teams who sign off on misstated financials, and Arther Andersen *was* an auditing firm until they were criminally charged with committing financial fraud with Enron. Dividends can still be paid without profits - many companies pay dividends out of current cash balances, and some issue debt to pay them. And show me an Apple shareholder who is unhappy with profits the company puts on the financial statement. To equate a company making money with stock price movements is naive, as there are many unprofitable companies that are stock market darlings. Think of a stock price like the sales price of a wrangler...the cost to build them is relatively stable, but the prices dart around, reflect changes in supply and demand as buyers and sellers transact in the marketplace.
Ahhh, but those are crispsThere is no chip shortage. The local grocery stores have plenty of bags of chips. See for yourself
"Cherokees" was meant to be inclusive of the family, but even if broken out basic Cherokees still outsell Gladiators 2-to-1. There were no net profits last year, and I don't see how shutting plants and selling fewer cars and trucks helps on that front - dealers with inventory = yes, manufacturer = not really. That was my point. North America generated $6B operating profit (not bad) but net profits were like below-MSRP 392s....nonexistent.
