Jeep and Ram dealers are pressing Stellantis to take more aggressive measures to reverse steep market share losses in the U.S., citing poor management decisions that have hurt sales.
In a letter to Stellantis CEO Carlos Tavares, a dealer advisory group blamed the company’s recent strategies for causing a significant sales slump. The letter, viewed by The Wall Street Journal, called for increased customer promotions and rebates to clear out growing inventories and address pricing concerns that have driven away price-sensitive customers.
Stellantis, the parent company of Jeep, Ram, Dodge, and Chrysler, has seen its U.S. market share drop to 8.5% in the first half of the year from 10.4% in the same period last year, marking the largest decline among automakers. The company’s dealers argue that pricing strategies and limited incentives have led to bloated inventories of older models while competitors have ramped up discounts to attract buyers.
In response, Stellantis issued a statement acknowledging that it had developed an action plan in collaboration with dealers, which helped boost sales by 21% in August. However, dealers continue to push for stronger measures, particularly rebates and incentives, that could help move inventory and improve customer engagement.
The letter, signed by four Stellantis dealers on an elected advisory committee, was also sent to Stellantis Chair John Elkann, who leads the Agnelli family’s holding company with a significant stake in the automaker. Dealers emphasized that the company’s focus on short-term profit maximization had contributed to layoffs, executive departures, and a 35% drop in Stellantis’ stock price this year.
Stellantis has already announced production cuts, including halting output on popular Jeep models like the Wrangler and Grand Cherokee and trimming its U.S. workforce. Dealers, however, are calling for production to be ramped back up once inventories are cleared despite the cost implications. They argue that the company must balance profitability with market competitiveness, especially as other automakers adjust pricing strategies and offer greater incentives.
As Stellantis works through internal challenges, its dealers remain vocal in their demands for a more customer-focused approach to restore market share and drive sales growth.
