Stellantis Faces Challenges with Jeep Gladiator and Broader Automotive Lineup #

In 2018, the Jeep Gladiator was unveiled as the brand’s first pickup model in over 25 years, promising much excitement. Sales doubled in 2020, nearing 90,000 units in the US despite the pandemic, making it a rare success story. However, after Fiat Chrysler’s merger with PSA Group in 2021 forming Stellantis, the company’s focus shifted. Prioritizing higher-priced vehicles, parts shortages decreased the availability of affordable Gladiators, leaving consumers searching for alternatives.

Gladiator prices soared, with new models surpassing $72,000, while sales plummeted, falling 21% within a year. Jeep’s overall sales dropped 36% from pre-pandemic levels. Stellantis’ higher pricing strategy alienated traditional buyers, who struggled with increased financing costs, leading to broader sales declines across its brands.

The complications extend beyond the Jeep Gladiator to include the Ram truck brand, which trails competitors like General Motors and Ford, and Dodge, which is phasing out some models for electric variants. Chrysler is left with only the Pacifica minivan in a declining market segment. Stellantis announced a reduction in shifts at its Toledo plant, cutting approximately 1,100 jobs.

An open letter warned of a looming disaster, citing halved market share and dropping share prices. “The company’s relentless focus on short-term profits has had devastating consequences,” the letter stated. Stellantis contested these claims, indicating efforts to optimize inventory and asserting sales improvements.

Workforce unrest looms, with potential strikes from the union over contract disagreements, which Stellantis refutes. Recent organizational adjustments provide some hope, yet dealer confidence remains shaky. Concerns linger about the Gladiator’s pricing and design hindering its market appeal, alongside a broader absence of entry-level offerings.

“This wasn’t intended to be a high-volume product. Producing a smaller pickup could compete for a larger market share,” said a key figure. Despite changes, many former popular models like the Challenger and Cherokee remain out of production. “It’ll be hard to get back the market share they had,” reflecting on the missing lineup once central to Stellantis’ success.