Stellantis leveraging deep discounts to move Jeep inventory

Stellantis is using markdowns on Jeep models to move inventory after receiving pushback from dealers over high prices and low incentives.

Driving the news: Stellantis saw a sharp decline in profits during Q3 while dealer inventory surged, prompting it to use aggressive discounts to spur demand. Price cuts have focused on the Gladiator, Cherokee and Wagoneer.

• The base Wagoneer model now costs $61,945, following a $3,000 drop, while the base Grand Wagoneer is now $7,000 cheaper at $86,945.

• Meanwhile, 2025 Gladiator prices have seen even bigger price adjustments compared to the 2024 lineup. Both the Mojave and Rubicon now cost $8,330 less than last year’s models.

• Price cuts ranging from $1,000 to $4,000 have also dropped the entire Grand Cherokee Laredo lineup to a sub-$40,000 price, destination fees included.

Looking back: Stellantis brands continued to see much higher days’ supply by early-October than other automakers, with Jeep vehicles averaging 126 days on the lot compared to the industry average of 81 days.

• While CEO Carlos Tavares has promised to bring dealer inventory down to 350,000 units before 2025, Jeep’s days’ supply was still four days higher than it was at the start of September.

• However, the model-year mix is improving at Jeep as well as at other Stellantis brands, making room for newer vehicles.

Bottom line: Stellantis’ ploy to move inventory through lower prices is likely to help dealers in the coming months. However, with less than two months left to go in 2024, it’s uncertain whether this will make a noticeable impact on the company’s Q4 performance.

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