The Stellantis sales decline in 2024 signals a need for change in the company. Will this new direction be the solution for Stellantis?
It wasn’t long ago that most American automakers chose to ditch sedans and focus instead on SUVs and EVs. That works fine for Ford and GM, which both have several SUVs of various sizes to offer, but the same can’t be said for Stellantis. The parent company of Ram and Jeep wasn’t positioned to offer affordability, and the drop in sales last year reflected that. With only the Jeep Compass as a compact SUV choice, and no midsize truck option from Ram, Stellantis struggles in the US market. The new plan could change things for the company.
The Stellantis sales decline of 2024 signals a change to affordable Jeep models in 2026
After losing 15% of US sales in 2024, Stellantis is scrambling to recover with a new game plan. The automaker behind Jeep and Ram is betting everything on cheaper vehicles as part of what insiders call an emergency turnaround. Will more affordable SUVs and trucks be enough to compete with Ford and Toyota, or is it too little too late?
Stellantis got it wrong and needs to create an automotive market share recovery before it’s too late
While other brands continue to create affordable vehicles to appeal to the masses, Ram was focused on an electric truck and an EREV system for the Ramcharger. While Ford, GM, and Toyota brought more compact SUVs to the market, Stellantis celebrated the end of the Hemi engines in the Dodge Charger and Challenger. While Hyundai, Kia, and Nissan began expanding their small EV lineups, Jeep focused on the massive size and build of the Grand Wagoneer. As you can easily see, Stellantis focused on the wrong part of the market.
Can volume provide enough profit?
Even when the Jeep, Ram, Dodge, and Chrysler brands were under FCA, the company was challenged with building a budget sedan that would provide profits for the company. That said, there’s more than enough budget SUV competition on the market to prove that building smaller vehicles still makes sense. Any automaker searching for volume sales and a way to get more shoppers in their dealerships understands the importance of budget-friendly small vehicles.
Going forward, Stellantis will thwart the sales decline of 2024 with a new Ram truck pricing strategy, Jeep Cherokee price cuts, and affordable electric vehicles, as they enter the market. The company will have to sacrifice profits in favor of volume and needs to become a trusted part of the solution in the market, rather than an outlier.
Smaller trucks and SUVs will help, but so will investment
Stellantis faces similar challenges with tariffs in the United States as most other brands. Building vehicles outside of the US just doesn’t make sense, especially for brands that are supposed to have domestic appeal. The company announced plans to invest $13 billion over the next four years to drive growth in the United States to offset the tariffs. Additionally, the EV plans are being scrapped in favor of smaller SUVs and trucks. It might be time for the midsize Ram truck to finally hit the market, giving the Ram brand something that it hasn’t had since the end of the Dodge Dakota.
Is Stellantis missing an important opportunity?
As the parent company of four brands in the United States, focusing strictly on Jeep and Ram might be a mistake. Now could be the right time to offer an affordable, compact Dodge SUV that can compete with the Chevy Equinox, Ford Escape, and Toyota RAV4. This SUV could be used as a stepping stone for a premium-level Chrysler SUV to go against Buick, Acura, and Infiniti. The Dodge and Chrysler brands are historically known for passenger vehicles that appeal to the masses, at least much more than Jeep and Ram.
In addition, offering more affordable compact Jeep SUVs still comes with the expectation that these vehicles must be off-road capable. That wouldn’t have to be the case if Stellantis used Dodge and Chrysler, which could certainly use boosts to their lineups if they are to survive in the current market.
How about a new Dodge Grand Caravan?
The Stellantis sales decline of 2024 should open the company up to any idea that might stick on the wall. Minivans might not be as popular as they once were, but instead of marketing lower trims of the Chrysler Pacifica under the same brand name, why not return to a marketing strategy that worked when the Dodge Grand Caravan and Chrysler Town & Country were part of the market?
Stellantis may need more than a new pricing strategy and a few affordable vehicles to change courses, caused by the sales decline in 2024; they might need a whole new strategy.
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