Stellantis is going through a chaotic period. The company’s CEO Carlos Tavares stepped down with no warning late in 2024. Since then, the automaker posted a 15-percent drop in deliveries for the previous year and has been working on a restructuring plan.
The situation is reportedly improving, though. A new story from Forbes indicates that slashing prices is helping the Stellantis brands reduce their significant inventory sitting on dealer lots. As of January, the automaker already reduced its inventory by about 100,000 vehicles.
Reducing Inventory
Ram, Jeep, and Chrysler had a significant amount of inventory taking up space in showrooms. The company responded by introducing incentives for these products to help sell them.
Forbes cites details from CoPilot, which operates a service for tracking dealership prices and inventory. The company also monitors the market days supply of brands, which measures the amount of time it takes for a vehicle to sell once a dealer has it in inventory.
From what we’re seeing, Stellantis is working to turn itself around. However, it’s a massive automaker so that process takes time.
The research showed that in the past 12 months that Ram’s market days supply fell by 23 percent. However, the figure is still at 106 days, while the market average was 78 days. In addition, Ram’s average price dropped 9 percent to $60,352 in the same period.
Meanwhile, Jeep saw its inventory fall to an average 111 days before selling, which was an 18-percent drop. Prices came down by 12 percent in the same period to an average of $47,691. Finally, Chrysler saw its vehicles lasting 94 days on the lot, which was a 47-percent drop. Currently, the brand’s only offerings are versions of the Pacifica and Voyager.
Future Problems?
The issue with cutting prices is that customers can get used to the lower costs. Let’s say someone buys a truck or SUV today at an incentivized price. In a few years, these people might come back expecting similar deals only to find significantly increased numbers.
CoPilot’s data indicates the average selling price of a Stellantis product is now $48,953. For reference, Kelly Blue Book estimates the mean vehicle sells for $49,740 as of December 2024. The figures suggest automaker’s offerings are going for just a bit less than average.
“It’s one thing to clear out excess inventory, it’s another to say: ‘Can you be a profitable dealer with a sufficient return as a public company at those prices?’” said CoPilot CEO, Pat Ryan, to Fortune.
TopSpeed’s Take
From what we’re seeing, Stellantis is working to turn itself around. However, it’s a massive automaker so that process takes time. These metrics are a good step, though. The numbers show the company is reducing aging inventory, and this means it can prioritize newer, more profitable vehicles in the future.
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