On the Dash:
- Stellantis dealers can’t advertise Chrysler, Dodge, Jeep, or Ram prices below a set minimum starting Oct. 1.
- The minimum covers advertised prices only, so dealers can still negotiate lower final prices.
- Digital ad reimbursement flows only through certified providers beginning Oct. 1.
Earlier this week, Stellantis announced a new policy that will bar dealers from advertising vehicles below a set minimum price. The policy takes effect Oct. 1 for new Chrysler, Dodge, Jeep and Ram vehicles, as part of the new Stellantis Marketing Covenant, according to dealer marketing firm Dealer Authority. The minimum applies to the advertised price and does not set the final transaction price.
How the advertised price works
Each advertised price follows a set formula, which considers the manufacturer’s suggested retail price (MSRP), certain dealer add-ons, accessories, and a limited market adjustment. It also accounts for dealer discounts and universal incentives. However, conditional incentives, such as military, first responder and loyalty offers, must be handled separately from the main price. That keeps the advertised figure an offer every customer can receive.
Digital advertising reimbursement will flow only through certified providers beginning Oct. 1. The covenant also restricts dealers from advertising against another Stellantis dealer’s doing-business-as name.
Why Stellantis wants a price floor
According to the Wall Street Journal, Stellantis is the latest automaker to adopt minimum advertised pricing. Proponents say the policy prevents misleadingly low promotional prices. Ealier this year, the Federal Trade Commission (FTC) warned 97 dealership groups in March about advertised prices that leave out mandatory fees.
CarEdge data cited by the Journal show Stellantis discounts are more than three times deeper than average. Additionally, documents reviewed by the Journal show Stellantis wants to shore up “brand integrity.” The automaker also wants to keep dealers from cheapening the Jeep, Dodge, Ram and Chrysler brands with fire-sale tactics.
What dealers say could happen next
The rules rein in dealer discounts, but manufacturer incentives such as bonus cash are not affected, according to the report.
Some dealers told the Journal that slower foot traffic and growing inventory are possible results. Jeep-Ram dealers already carry more inventory than the industry average. Stellantis could need to spend more on incentives if the minimums reduce demand. Several dealers said they want to compete on customer service and a smooth sales experience. Dealers can still compete on price once a shopper makes contact.
