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Welcome to The Breakdown, an analysis of auto retail’s top trends, moves, and insights, in under 5 minutes.
There are certain OEM realities no dealer can control…
Like a surprise memo that quietly caps how many CJDR stores you’re allowed to buy in a year.
At the start of the year, Stellantis $STLA ( ▲ 3.24% ) told its U.S. network that, effective January 6, dealers can acquire only one CJDR store in any rolling 12‑month period. On top of that, all the usual OEM approval rights still apply.
Sure, in some states like Florida, franchise laws give dealers more room to maneuver with individual franchise agreements. But in all likelihood, consolidation inside the official network is going to slow.
And while Stellantis declined to comment on the decision, three reasons stick out to me that could explain why the automaker would pull this lever now...
Dealers are likely pushing back on Carvana’s CJDR land grab.
Over the past year, Carvana has quietly turned into a real CJDR presence. It is now up to five Stellantis rooftops after an acquisition streak that includes points in California, Texas, and Georgia.
Inside Circles and across dealer chatter, many CJDR operators read the new OEM cap as a direct response to that spree.
The reason: A single, well‑capitalized platform that can buy multiple CJDR points in a short window threatens to outpace traditional groups and reshape local pricing, advertising, and even hiring dynamics.
I mean, a few measly months after purchasing their first store, Carvana shot up the sales rankings.
Month of Nov. 2025, submitted by an anonymous dealer
Already, Carvana has access to:
Certified pre-owned CDJR inventory.
Secure access to CDJR’s closed auction sales.
And wholesale parts directly from Stellantis.
The takeaway: A one‑store‑per‑year cap doesn’t stop Carvana (or anyone else) from buying. It just encourages players to move at roughly the same cadence.
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Stellantis is prioritizing throughput, performance, and network health.
Stellantis is already in the middle of a heavy‑lift turnaround.
CDG Circles members who attended the Stellantis dealer meeting at the 2026 NADA Show said the automaker is pushing for 8% U.S. market share in 2026, roughly 1.1 million units sold. But hitting that goal would require dealers to lift volumes by about 25%.
But Jack Ballinghoff, COO at Ourisman Automotive Group and H Street Management, described the dealer network as “battered,” driven by years of lackluster product, inventory imbalances, and brand perception issues.
“If you are a large group or public buying a multi-store platform that is requiring you to buy one or more struggling CDJR stores, this will force the buy/sell to flip one or more stores instead of allowing the risk for it to be closed as poor asset value in the transaction,” he said.
Jack Ballinghoff
Ourisman Automotive Group
“If you are a large group or public buying a multi-store platform that is requiring you to buy one or more struggling CDJR stores, this will force the buy/sell to flip one or more stores instead of allowing the risk for it to be closed as poor asset value in the transaction,” he said.
“Some large dealer groups are probably viewing Stellantis stores only for their real estate. Enforcement of this rule will slow down that calculated action potential until the brand recovers.”
Translation: Some retailing organizations don’t look at CJDR points as long‑term throughput engines, but rather as a package deal tied to attractive dirt.
Which can lead other dealers to question whether it’s worth investing in facilities, people, and inventory for these brands.
Big picture: Stellantis is probably trying to keep local players confident enough to underwrite their next deal on operating performance and recovery upside, not just real‑estate optionality.
Stellantis is hoping to reverse the decline in dealer morale.
As Todd Edwards, co-owner of Edwards Auto Group, put it, “venture capital money, or publicly traded money, or whatever, that can come in with large sources of capital” can apply a “hyper competitive element” through tech, AI, and shipping advantages.
That reality is shaking the confidence of a third‑generation operator who has played by the traditional rules and then watches large platforms “come in and gobble up multiple stores” in the same market.
Edwards’ view is that manufacturers are “waking up that dealer morale is very vital” to driving growth.
High morale tends to show up as more investment, better talent, nicer facilities, and stronger product commitment.
Meanwhile, low morale shows up as hesitation, under‑investment, and risk‑off behavior.
In that context, by hard‑capping acquisitions at one CJDR store per rolling 12‑month period, Stellantis is signaling to existing dealers that a single hyper‑scaled platform is not going to end up with half a state’s CJDR points overnight.
And that operators who invest in facilities and people are less likely to see the competitive landscape rewritten in a single burst of deals.
The big question is… what will this change do to CDJR dealership values?
From my perspective, it's too early to even make an educated guess.
And many dealers I’ve talked to are split. Historically, they don’t welcome any change that limits how aggressively they can expand. But some see this as a sign that Stellantis is taking its turnaround (and the long‑term health of the CJDR network) more seriously, even if the immediate impact on what their stores are worth is still an open question.
