Related in part to the Jeep threads - Stellantis is getting more downgrades. Their overpriced vehicles line dealer's lots and are not moving. From the article - "Its North American business is the issue. Falling U.S. sales and high U.S. dealer inventories proved too much for the company to overcome."
for the tldr folks -
Making things worse is the state of dealer inventories. U.S. Jeep dealers ended August with about 122 days worth of sales, while Dodge dealers had almost 150 days of inventory. A safe level of dealer inventories is considered to be closer to 60 days.
High inventories need to be worked off before Stellantis can ramp up wholesale shipments again.
“There were warning signs that inventories were too high and its premiumization push meant pricing in North America was no longer aligned with consumer affordability,” wrote Roeska in a recent report. “But even we were too complacent as it became painfully clear when the wheels literally came off this week.”
for the tldr folks -
Making things worse is the state of dealer inventories. U.S. Jeep dealers ended August with about 122 days worth of sales, while Dodge dealers had almost 150 days of inventory. A safe level of dealer inventories is considered to be closer to 60 days.
High inventories need to be worked off before Stellantis can ramp up wholesale shipments again.
“There were warning signs that inventories were too high and its premiumization push meant pricing in North America was no longer aligned with consumer affordability,” wrote Roeska in a recent report. “But even we were too complacent as it became painfully clear when the wheels literally came off this week.”