Stellantis dealers are adjusting to new rules on how they advertise vehicle prices, while some operators see the change as a way to reward stores that deliver a better customer experience. On today’s edition of CBT Live, Phil Pecoraro, Operating Partner and Owner-Operator of Murdock Chrysler Dodge Jeep Ram of Bountiful, joins the show to share his view of Stellantis’ new pricing policy.
Stellantis’ new minimum allowable advertised price (MAAP) requirements take effect Oct. 1, setting a floor on the prices and discounts dealers can advertise. Some dealers used to advertise $6,000 or $7,000 in discounts, then tack on add-ons once customers arrived, Pecoraro said. The pricing floor makes stores compete on the experience they provide, he said.
According to Pecoraro, rebuilding trust with dealers remains the automaker’s biggest task. He wants Stellantis to measure success by dealer profitability. He’s bullish on the product lineup, including Ram’s upcoming Dakota and Rampage pickups.
Trucks are selling well at his store, while Jeeps are struggling and high gas prices have slowed heavy-duty sales. Used cars are the biggest opportunity, he said, with inventory under $30,000 moving almost as fast as the store can stock it.
Pecoraro said the Chinese vehicles he saw in Dubai earlier this year were impressive. U.S. consumers should have access to them, he said, if concerns about safety, parts and technology are addressed. He added that having Chinese automakers build vehicles here could give buyers more affordable options.
