Stellantis sales drop sharply in second quarter amid dealer discontent

Stellantis NV sales fell 21% in the second quarter compared to last year with all of its major brands — Jeep, Ram, Chrysler and Dodge — suffering steep declines.

The transatlantic automaker sold 344,993 vehicles in the United States in April, May and June, compared to 434,648 in the same period a year ago.

The company noted it did sell 4% more vehicles in the second quarter than it had in the first quarter of this year, which had been another difficult sales period.

But overall in the quarter, Stellantis' major brands fell sharply year-over-year: Ram by 26%, both Jeep and Chrysler by 19%, and Dodge by 17%. Both Fiat and Alfa Romeo saw sales increases, but both brands' total volumes are minimal in the United States, with Fiat selling 316 cars and Alfa 2,492.

In terms of individual models, Jeep's large and luxury SUVs, the Wagoneer and Grand Wagoneer, were the lone bright spots for the quarter. Wagoneer more than doubled its sales to 16,734, and Grand Wagoneer was up by 24% to 4,005 sold.

For the first half of 2024, Stellantis sold 677,533 vehicles, down 16% year-over-year.

The dismal report comes as Stellantis dealers in the United States have expressed frustration over pricey vehicles that don't match well with what consumers want. The angst was aired during meetings last week of the Stellantis National Dealer Council and in an earlier letter from dealers to CEO Carlos Tavares.

Matt Thompson, head of U.S. retail sales for Stellantis, said in a statement that the company has been making moves to offer customers a wider range of fully electric, plug-in hybrid, and gas-powered options, and it has also adjusted pricing across Jeep, Dodge, Chrysler and Ram.

The company is also offering new incentives to boost sales. Starting Tuesday, Thompson said, Stellantis is "launching a national ‘Summer Select Inventory Bonus Cash’ incentive campaign, which will provide up to $2,000 cash back across many of our nameplates."

Kevin Farrish, who owns a Stellantis dealership in Virginia and leads the nationwide dealer council, said in a statement that dealers have been working with Stellantis leaders to help provide customers with the right mix of products "at competitive pricing."

“It’s been a very open, collaborative effort working together as a team, and we'll continue to tackle these important issues together on behalf of our customers," Farrish said.

Stellantis said several of its electrified offerings continue to be solid sellers. Its plug-in hybrids — Jeep Wrangler 4xe, Grand Cherokee 4xe, Dodge Hornet R/T and Chrysler Pacifica Hybrid — remained as four of the top five selling plug-in hybrid models on the market in the United States through the end of April, the company said.

The first fully electric Stellantis model in the United States, the Fiat 500e, sold 163 units in the second quarter, as more of the small city cars made their way out to dealers this spring.

But overall, even usually hot-selling models for Stellantis, like the Jeep Wrangler and Grand Cherokee, were down 17% and 26%, respectively. Ram pickup sales fell by 23%. And Chrysler's Pacifica minivan was down 16%.

[email protected]

@lramseth