The maker of huge American brands Jeep, Dodge, Chrysler and Ram reported a staggering 70 percent drop in profits for 2024.
The corporate owner of the brands, Stellantis — the third biggest automaker in the US — said it cannot sell cars quick enough, with one model sitting on lots for over a year before selling on average.
Steep prices for several models are putting off buyers. The Jeep Wagoneer, for example, starts at $59,000 and top models reach upwards of $114,000.
Meanwhile, several cars, including the Jeep Grand Cherokee and Jeep Wrangler, are prone to breaking down frequently, landing below-average reliability ratings with Consumer Reports.
Americans don’t want to buy expensive and unreliable cars – which has to a 25 percent drop in sales in the US, with Jeep badly hit. That is a bigger fall than the 11 percent in Europe.
Globally, profits for Stellantis — which also makes Fiat, Peugeot, and Maserati —fell from $19.55 billion in 2023 to $5.78 billion last year, according to its latest earnings report.
Stellantis also blamed delays delays to the launch of new models — leaving gaps in its range.
One glaring weakness is Stellantis’ lack of a small pickup in the Ram lineup. The Dodge Challenger, previously the smallest vehicle in its portfolio, was discontinued after the 2023 model year, leaving a gap in its range.
The Dodge Hornet had one of the worst days-on-lot numbers in the US market through 2024
A series of headline-grabbing crisis plagued the automaker in 2024.
The Hornet, Dodge’s newest vehicle last year, was an obvious example of the company’s struggles.
In September 2024, Dodge dealerships had so many unsold Hornets that at the it would take 428 days — well over a year — to clear their lots of this struggling model.
The national average for lot wait times across all automakers in January 2025 was 90 days. Chrysler, Ram, Jeep, and Dodge all posted averages above 109 days across their vehicle fleets.
Overall, total vehicle sales fell by 12 percent globally. Sales in North America dropped 25 percent in 2024.
The dramatic profit collapse also comes amid leadership turmoil.
Former CEO Carlos Tavares departed in December and the company still searching for a permanent replacement.
Rumors have swirled that the company might also sell one of its luxury brands as it continues the search for a top boss.
Carlos Tavares, Stellantis’ former CEO, stepped down from the role in December – the company is still searching for a top boss
Ram trucks have also sat on the lot for longer than American vehicle industry standards
Sales in the brand slowed down in 2024 – the company hopes new products will help
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Maserati, which posted a 58 percent sales decline in 2024, has been a top contender for the chopping block.
In a statement with the company’s earnings, Stellantis said that interim leaders have ‘taken quick, decisive actions to improve the company’s performance and profitability.’
In 2025, Jeep is releasing a new electric SUV, the Recon. Dodge has also launched the EV Challenger. Ram is about to bring the full-size RamCharger pickup to dealership lots, too.
The company remained vague about its 2025 outlook, committing to increased sales revenue.
Wall Street reacted negatively to the report, with the stock losing about 3 percent value by mid-day.
Engine trouble
Stellantis is not alone.
Several other major automotive brands — including Audi, Tesla, and Nissan — reported weaker sales data in 2024.
The companies are facing new global threats from rising automakers in China and India.
Many majors are also clawing their way back to relevance after failing to make billion-dollar investments in self-driving and battery electric drivetrain technology.
Meanwhile, American consumers are facing a pricing crisis in the auto market.
The average new vehicle price for American cars hovered around $48,000, a $13,000 jump from 2020.
Several automakers have increased their market share with different approaches.
Toyota has doubled down on hybrid technologies and has seen a 3.7 percent increase in sales in 2024.
Hyundai and Kia, both lower-cost brands, increased sales by 3.1 percent in 2024 after investing billions in American-made battery manufacturing plants.