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Stellantis sales tumble further in Q2
Colin Velez
July 03, 2024
Stellantis’ U.S. sales tumbled 21% year-over-year during the second quarter, sending up red flags for the brand even as other automakers report strong results for the period.
Why this matters: While other brands are celebrating their Q2 results, Stellantis is now facing its fourth consecutive quarter of weaker sales. What’s worse is that the fall appears to be accelerating, as in Q1 the company’s losses amounted to only a 10% decline compared to 2023.
Here’s how Stellantis did in the U.S.
Stellantis posted Q2 sales of 344,993, down 21% or 89,655 units from the same time last year. This drags its year-to-date sales down 16%.
The company’s sales were ahead of Q1’s sales by about 4%, with certain product categories seeing sizeable improvements compared to the first three months of the year. For example, Ram’s fleet sales grew 47% on a quarterly basis. However, it is rare for brands to dip below Q1 numbers in their second quarter due to the typical differences in winter and spring demand.
Each of Stellantis’ brands saw notable declines throughout the quarter.
Jeep: down 19%, total of 147,147
Ram: down 26%, total of 105,485
Chrysler: down 19%, total of 39,766
Dodge: down 17%, total of 49,787
Fiat: up 119%, total of 316
Alfa Romeo: down 8%, total of 2,492
Nearly all of the company’s products faced substantial volume declines, although there were two clear exceptions. Jeep’s Wagoneer and Grand Wagoneer saw respective gains of 119% (up 16,230 units) and 43% (up 2,287 units). In its report, Stellantis also directed attention to its hybrid lineup, which contain four of the five best-selling hybrid models in the U.S.
In an effort to recover lost ground, Stellantis is launching a $2,000 cash back incentive, applicable across a wide range of models throughout its brands. Unfortunately, this may make only a marginal difference.
Why is this happening: Stellantis’ demand issues are largely self-manufactured, as they stem from one primary weakness: affordability. In April, the company’s average MSRP was $59,398, about $10,000 more than the industry mean. This unwavering adherence to pandemic-era pricing has allowed the automaker to maintain an admirable profit margin, especially when compared to competitors, an advantage its executives have made sure to tout. But with the risk of sales falling even faster in the later half of 2024, it’s unclear whether such a strategy is sustainable.
Bottom line: Stellantis needs to change the way it approaches sales in the U.S., not just for its regional footprint but its international market as well. With automotive competition in China threatening to upset the global status quo, the company will need to protect its stake in countries where Chinese products aren’t likely to appear anytime soon.
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