Car Dealership Guy Podcast

Is Stellantis Facing Its Time of Reckoning? | CDG Market Pulse

Nov 27, 2024

Stellantis is facing significant operational challenges, leading to dealer dissatisfaction and critiques of failed pricing strategies. The impact of rising inventory on profitability is front and center, reflecting deep concerns within the dealer community. Changes in leadership and inventory management indicate a pivotal shift, prompting vital recommendations for better dealer relations. The discussion invites listener feedback on Stellantis' trajectory and future prospects, highlighting the complex landscape of the automotive industry.

05:14

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Quick takeaways

Stellantis's pricing strategy, initially successful during supply shortages, has now alienated consumers due to high vehicle prices and expectations.

Strained dealer relationships due to inventory issues highlight the necessity for Stellantis to realign its strategies and better support its dealers.

Deep dives

Stellantis' Pricing Strategy Challenges

Stellantis has faced significant challenges with its pricing strategy in response to changing market dynamics. Initially, the company's move to position itself as a premium brand was effective during the COVID pandemic when supply shortages drove up prices. However, as inventory levels normalized, the high pricing became problematic, especially with models like the Jeep Grand Cherokee priced close to $70,000, leading to consumer frustration. The disconnect between vehicle prices and consumer expectations has resulted in Stellantis recording one of the highest average car prices in the industry, indicating a need for reevaluation of their pricing approach.

Navigating Challenges: Stellantis' Reckoning and Dealer Dissatisfaction

3min

Navigating Change: Stellantis' Strategic Shift and Future Prospects

2min

Welcome to the audio edition of the Car Dealership Guy Market Pulse!

Today’s big story: Is Stellantis facing its time of reckoning? Now comes the hard part…

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