With Jeep Prices High and Lots Full, Dealers Aren't Happy

The dealers who sell Stellantis vehicles have been complaining for years about the damage inflicted on their businesses by company policies, going public with their gripes via an open letter this fall to warn about the company's direction. And they've felt ignored. So dealers contending with high prices and inventory were relieved to see CEO Carlos Tavares resign this week, the Detroit Free Press reports. They realize changes won't be instant, but there are several steps the dealers want the next CEO to take quickly. For starters, one said, "We hope for a leader who values collaboration with dealers."

• The inventory: This tops the list of problems. A group of dealers brought to Detroit in May to see new models took the opportunity to give executives an earful about the issue, when inventory was running at a three-month supply—much higher than the industry average.
• The price: The dealers blamed the company's refusal to lower prices, per the Wall Street Journal, which executives relented on in some cases. Before that, Stellantis vehicles had hit an average US sale price of $58,000 in late 2023, Edmunds data show. That was the industry high by plenty, per CNN.
• Case in point: Jeep prices are emblematic of the issue; sales of Gladiators, with sticker prices that can reach $72,000, have plunged. Stellantis had "moved to a price point that's too high for their typical customers," said a senior economist for Cox Automotive.
• Potential fixes: The dealers want the new CEO to make electric vehicles the priority. Analysts say the maker of Chrysler, Dodge, Jeep, Ram, and Fiat vehicles might have to shed some products and brands. But first, they say, those vehicles sitting on dealers' lots have to go. "Cut prices big time or write off inventory," one analyst said. "Not great choices."

Dealers and analysts blame the company's focus on short-term profits in 2023, which they say cost market share almost by half, hurt the stock price, and resulted in closed plants and layoffs. John Elkann, who's leading the committee temporarily taking over Tavares' duties, seemed to agree in an email Monday to employees. "The board believes the focus for our company and stakeholders needs to be on the long term," John Elkann wrote, per the Journal. In his statement, UAW President Shawn Fain said, "Tavares is leaving behind a mess of painful layoffs and overpriced vehicles sitting on dealership lots." (More Stellantis stories.)