In a challenging year for the automotive giant, Stellantis, the parent company of Jeep, Dodge, Chrysler, and Ram, reported a staggering 70% drop in profits for 2024. The automaker, which is the third-largest in the US, is struggling with unsold inventory, a high rate of breakdowns in some models, and steep prices that are turning off buyers.
One of the biggest hurdles Stellantis faces is the high cost of its vehicles. The Jeep Wagoneer, for example, starts at $59,000, with top models exceeding $114,000. These hefty price tags are alienating many consumers. Additionally, some models, like the Jeep Grand Cherokee and Jeep Wrangler, have been flagged for frequent breakdowns, earning below-average reliability scores from Consumer Reports.
Jeep Wrangler
As a result of these factors, Stellantis saw a significant drop in sales, with Jeep experiencing a 25% decline in the US—far worse than the 11% dip in Europe. Overall, global vehicle sales dropped by 12% in 2024, with North America suffering the biggest blow.
Adding to the company’s troubles, Stellantis has struggled with delays in releasing new models, leaving gaps in its lineup. Notably, the Ram lineup lacks a small pickup, and the Dodge Challenger was discontinued in 2023, further reducing consumer interest. Meanwhile, the Dodge Hornet, a new model for 2024, faced an unsold inventory crisis. Dealerships had so many Hornets on their lots that it would take over a year to clear them.
Stellantis is also grappling with leadership turmoil. Former CEO Carlos Tavares stepped down in December, and the company is still searching for a permanent replacement. The uncertainty surrounding leadership may be contributing to the company’s lack of direction as it faces multiple challenges.
Former CEO: Carlos Tavares
Stellantis isn’t the only automaker struggling. Companies like Audi, Tesla, and Nissan also reported weaker sales in 2024, as global competition heats up with new players from China and India. Meanwhile, the average price of a new car in the US has risen to $48,000—$13,000 more than in 2020—making it harder for consumers to justify expensive and unreliable options.
Despite these challenges, Stellantis is attempting a comeback. The company is planning to release new electric vehicles in 2025, including the Jeep Recon and the Dodge EV Challenger. Ram is also introducing the full-size RamCharger electric pickup. However, Stellantis has been vague about its future outlook, which has led to Wall Street’s negative reaction, with the stock dropping by 3%.
Stellantis’ struggle is part of a larger shift in the auto industry, where electric vehicles, hybrid technologies, and self-driving capabilities are reshaping the market. While Stellantis is investing in these areas, its competitors—like Toyota and Hyundai—have been quicker to adapt. If Stellantis can’t regain momentum with its new electric offerings, it risks falling further behind in an increasingly competitive market.
