Stellantis Skids: Jeep and Dodge Parent Battles Profit Crash, Dealer Backlash, and Looming Strikes

Stellantis, the powerhouse behind brands like Chrysler, Jeep, and Dodge, is hitting some serious bumps in the road. The company’s profits are taking a dive, with dealers frustrated over unsold cars piling up and not enough buyer incentives to move them off lots. Stellantis stock has dropped by nearly 50%, and now the United Auto Workers (UAW) is threatening strikes at several U.S. plants over potential job losses.

With U.S. operations representing over half of its global profits, Stellantis is feeling the heat. Dealers are blaming CEO Carlos Tavares for short-term profit-driven decisions that led to a bloated inventory and higher vehicle prices. This has left many buyers unable to afford new models, hurting sales of iconic brands like Jeep and Dodge.

Adding to the turmoil, the company announced it’s cutting back production and adjusting pricing on some vehicles like the Jeep Compass. They are trying to win back consumers by boosting discounts, but the road ahead is far from smooth. With Tavares’ future as CEO in question and the potential for strikes looming, the company a lot of work to do to get back in gear.