Stellantis US Sales Fall 21%, Rolls Out $2,000 Incentive To Stop The Bleeding

https://www.msn.com/en-us/money/new...S&cvid=05d943c01d1d46228c3c3a358c853d42&ei=16

 

[mtnrider]

Stellantis cutting 2,450 jobs in Michigan - today's news story.

Because they are discontinuing the 1500 classic, we already knew that was coming and made no sense for them to produce a classic and 5th gen 1500. Surprised they didn't kill the classic a couple years ago when the 5th gen first came out..


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[Dave Haddon]

Always believed that we common folk as a group can influence if not control the pricing on anything. The fat cats that sit in their luxury homes and dictate pricing need to be slapped upside the head to get them back to reality. That reality is we will not buy these vehicles at these prices. When they start to realize that prices will come down. We have to be strong and not buy..easy to say I know but that is the answer.

 

[LugsLeadOut84]

Always believed that we common folk as a group can influence if not control the pricing on anything. The fat cats that sit in their luxury homes and dictate pricing need to be slapped upside the head to get them back to reality. That reality is we will not buy these vehicles at these prices. When they start to realize that prices will come down. We have to be strong and not buy..easy to say I know but that is the answer.

I had similar conversations with two dealerships I visited (CDJR and Ford) who basically blew my pricing disbelief off with a "sorry, it's the world we live in today". They must have gone to the same "How to Deal with Customer Sticker Shock" dealership symposium because they both echoed the same term. My reply was that yes, prices do increase over the years but today's pricing increased exponentially and is just absurd. I said I would change the type of vehicle I get before I drastically overpay for it. I reminded them that they enjoyed high prices and gouging for the past 5 or so years and are obviously tying to hold onto it, but the pendulum always swings...I won't forget who blew me off when they had the advantage. I'd be willing to wait to get another truck when the auto industry sooner or later is hurting and we'll be tripping over incentives and factory cash back offers. I thought the poor sales reports from Stellantis would bring this to light and possibly bring prices down to earth a bit, but aside from $2,000 off an already inflated MSRP, they seemingly doubled-down. I don't expect miracles and I know they are in business to make money. But I do expect them to make an effort, work with me and don't gouge people.
Some might blame the high interest rates - that definitly adds to the issue but high interest rates on a lower priced vehicle doesn't add as much to the equation as high interest rates on an overpriced vehicle.
To your point, I do my part to send a message but a lot of people just roll over and pay. Ford made the "maybe you should be looking for vehicles more in line with your budget". That pissed me off because this isn't about affording something or not because I fortunately have the means...but having the means doesn't make it right or smart to clearly overpay for something. Ironically they followed-up 2 days later but they can go pound salt now. I won't tolerate paying $64k with no incentives for a truck that was $48k plus incentives just a few years ago. I had a great experience and will be returning to a GMC dealership who is actually putting in an effort to try and incentivise a leftover Sierra. Their effort alone made the difference - my RAM dealer used to be this way but I think their heads have since inflated too much. I gave up being loyal to RAM because I saw they weren't loyal to me, so maybe it's time to try something new. Rant over.

By the way, here's an example of a local CDJR's website, in case you're just price-shopping (the page scrolls down for 20 more pictures with the same caption):

 

[Docwagon1776]

Always believed that we common folk as a group can influence if not control the pricing on anything. The fat cats that sit in their luxury homes and dictate pricing need to be slapped upside the head to get them back to reality. That reality is we will not buy these vehicles at these prices. When they start to realize that prices will come down. We have to be strong and not buy..easy to say I know but that is the answer.

That's quite literally the underpinning of how the free market works. Supply/demand set price.

People can ask any price they want, but set your price above the supply/demand curve and it'll languish.

 

[tjfdesmo]

The MBA dolts have to read up on price elasticity.

 

[HEMIMANN]

The MBA dolts have to read up on price elasticity.

They don't give a $hit.
It's all about how much they can extort today.
They don't give a fuch about tomorrow. That's why they jump around and fail companies that took decades to build.
Rampant selfishness has torn USA asunder.
I've lived it.

 

[Dave Haddon]

Excellent rant LUGS and right on point ...

 

[tjfdesmo]

They don't give a $hit.
It's all about how much they can extort today.
They don't give a fuch about tomorrow. That's why they jump around and fail companies that took decades to build.
Rampant selfishness has torn USA asunder.
I've lived it.

1000%

 

[BenchTest]

When is the big RESET going to happen? I keep hearing/reading about it. The big implosion. The big turn around.

 

[Docwagon1776]

When is the big RESET going to happen? I keep hearing/reading about it. The big implosion. The big turn around.

Never. It's the latest doomporn people for people who are constantly in a cycle of the sky is falling due to *insert conspiracy here* that has been a staple of human existence forever, but has been rapidly accelerated by social media. Little ones like the price of rice is going to sky rocket causing global instability to big ones like Jade Helm nonsense, all forgotten in short order for the newest Chicken Little's theory.

 

[BenchTest]

Never. It's the latest doomporn people for people who are constantly in a cycle of the sky is falling due to *insert conspiracy here* that has been a staple of human existence forever, but has been rapidly accelerated by social media. Little ones like the price of rice is going to sky rocket causing global instability to big ones like Jade Helm nonsense, all forgotten in short order for the newest Chicken Little's theory.

Well c.rap...what am I going to do with all these foil hats that I've been making for years in hopes that the sky WOULD fall? And my bunker full of 50 year shelf-stable food? All this for nothing.

 

[DILLIGAF]

Inflation is a Tax on the poor. Rich people dont give 2 ch!ts.
Smart people buy used anyways, unless you like lighting money on fire, or use it as a tax write off.

On that note, I just found myself a 2nd Gen Cummins 5 speed and a 1952 Chevy to swap onto it

 

[Yardbird]

I've bought exactly two (2) new vehicles. One, a 1979 Ford pickup at the end of the year when the prices were way down because of the economy we were in at that time.

In 2002 I bought a new SantFe that the wife wanted for her. They were giving great deals since Hyundai was just coming on the market with them.

It turned out to be a very good vehicle we kept for many years.

 

[Docwagon1776]

Well c.rap...what am I going to do with all these foil hats that I've been making for years in hopes that the sky WOULD fall? And my bunker full of 50 year shelf-stable food? All this for nothing.

Baked-potato-centric restaurant is the only answer that makes sense. Since it's in a bunker, call it The Root Cellar.

 

[BenchTest]

Baked-potato-centric restaurant is the only answer that makes sense. Since it's in a bunker, call it The Root Cellar.

I do love a good baked potato buried with chopped brisket, sour cream, cheddar, butter, and some onion.

 

[Docwagon1776]

I do love a good baked potato buried with chopped brisket, sour cream, cheddar, butter, and some onion.

I'm a problem solver. It's what I do.

 

[Pull Ya]

$2000 off on an MSRP of $70-$80 thousand doesn't sound like a very serious way to move a huge backlog of inventory you can't sell. You can't afford or won't pay the outlandish prices and you're going to keep your present truck and have it repaired as needed--you'll be happy to know that most dealer shop rates are now around $200 per hour and a substantial amount of parts are on nationwide backorder. To say "they" don't give a **** about you is an understatement.
Jay

 

[skates15]

Its 3k off now and no payments when financed thru Stellantis.

So...they lose half their share price and the execs answer is to give an extra 1k cash back.

CEO comes to the US to address their crisis admitting their faults and this is what he initially comes up with.

Pretty lame, but not unexpected. He will keep the prices as high as possible for as long as possible, reducing the bleeding via layoffs and other cost cutting measures before any meaningful price reductions are made.

These execs live in a bubble. They don't have to decide what no longer goes on the grocery list, they don't have to sweat over the cost of gas, or decide how long to delay dental work for their kids.

Everything is provided to them.

They don't even have to worry about losing their jobs because their contracts provide for a golden parachute containing more money then 99% of the population will see in multiple life times.

It wouldn't surprise me to find Ram lives on as a Chinese brand.

 

[Pull Ya]

IMHO the downward spiral is going to be hard to stop. Jeep and Ram very well might land somewhere else.
Jay

 

[jerm53]

IMHO sadly i believe this is the beginning of the "death wobble", for CDRJ.