Stellantis announces massive expansion of discount programs as the company attempts to get rid of a growing overflow of inventory to free up room for future products while also continuing to navigate rough waters.
Stellantis confirms that it will be launching a new round of discounts to clear lots of slow-selling models like the Dodge Hornet.
Stellantis has had a rough 2024 so far with the automaker reporting that sales in the U.S. have fallen by 16% in the first half of 2024 with the pain being felt by many of the brands in its large corporate umbrella. Ram for example saw its sales drop by 26% which is bad news as the truck brand prepares to not only roll out the Ram 1500 REV but also a fleet of other EVs to help expand its presence in the market. The rest of the family is not doing good either with Jeep also seeing sales declines while Chrysler has been on figurative life support for a few years now.
These large declines in sales are also fueling a rapid increase in inventory with more dealerships becoming frustrated with how much glut that they currently have on their inventory lots. Stellantis was quiet on the matter for awhile but it has now confirmed that it will expand its discount programs to older vehicles as it attempts to clear up space.
New round of discounts will target older models
Other models on the list include the Alfa Romeo Stelvio and its sedan teammate the Giulia.
This latest round of discounts will focus on older vehicles, and while 2024 models will make up the bulk of the company is targeting, some will apply to lingering models from 2023 and below. This seemingly indicates that the company has had some of this inventory sit on dealer lots nationwide for over two years with dealerships finding no takers for these models. A prominent example of a vehicle that could benefit from this initiative is the Dodge Hornet CUV.
The Hornet promised to bring Dodge into the popular CUV segment and was supposed to give buyers a performance-focused alternative to rivals that preferred to put practicality and function as their core selling points. Unfortunately, the Hornet has proven to be a slow seller with its high price tag scaring off the very budget buyers that the brand was hoping to attract in the first place and leaving more dealerships frustrated with how long they have been sitting on their lots with some of them putting discounts of their own on it just to make them leave their inventories.
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Stellantis is facing pressure from multiple fronts
The plan comes as Stellantis and CEO Carlos Tavares are navigating a rough sea of problems including tension with the UAW and frustrated dealerships.
The latest discount program comes as Stellantis is facing pressure from multiple fronts. A renewed feud with the UAW over layoffs and the company not following through on its bargaining agreement is raising the possibility of renewed strike action at some of the firm’s production facilities. Meanwhile, dealerships are also getting frustrated with the U.S. Stellantis National Dealer Council sending a letter blasting corporate leaders and blaming them for the rapid degradation of Jeep, Ram, Dodge, and Chrysler brands while also accusing CEO Carlos Tavares of creating an “imminent disaster.”
These frustrated dealerships are also reminded of the company’s struggles every day when they look at how bloated their model inventories are. In addition to the Hornet, several other models have also been sitting around on dealer lots for too long. The Alfa Romeo Giulia has been a thorn in the side of many Alfa dealerships with the sporty sedan having an inventory supply of over 617 days in the month of September with the Stelvio having a slightly lower 456 day supply. Meanwhile, the defunct Jeep Renegade has a 332 day inventory supply with the Fiat 500e having a 454 day supply of units as the Italian brand ramps up efforts to launch the model.
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