Cox Automotive Analysis: Stellantis’ Q4 2023 Market Performance – Cox Automotive Inc.

After the six-week strike by the UAW ended, Stellantis estimated that it lost about $3 billion in revenue and less than $800 million in profits. That is less than the losses experienced by General Motors and Ford. The actual numbers will be revealed when Stellantis reports earnings for the second half and full year 2023 on Thursday, February 15.

In the U.S., Stellantis’ sales slipped 1% in the fourth quarter compared with the year before, while the total market was up 8%. Stellantis posted lower sales volumes despite vastly beefed-up incentives, which were higher year over year by 166% to an average of $4,404 per vehicle. Still, Stellantis’ average transaction price jumped 6% to $59,292 when other automakers had ATPs flat, down or barely up.

Here are some data points from Cox Automotive on Stellantis’ fourth-quarter market performance in the U.S., one of its most important markets.

Stellantis’ Q4 Sales Slipped 1% When the Industry Was Up

Stellantis sold 343,552 vehicles in the fourth quarter of 2023, down 1% from the year-earlier quarter, while U.S. industry sales rose 8%, according to Cox Automotive calculations. Stellantis’ sales were the lowest in at least the past five years for the fourth quarter. For comparison, Stellantis sold 524,519 vehicles in 2019.

STELLANTIS U.S. SALES PERFORMANCE FOR Q4 2023

For the full year of 2023, Stellantis was the only major automaker posting lower sales than the year earlier when the global computer chip shortage crimped sales. Stellantis fell in the sales rankings in the U.S market behind Hyundai Motor in 2023.

Stellantis’ volume brands of Jeep and Ram turned things around by year-end. Dodge and Chrysler had lower sales than the year earlier. The Italian makes – Alfa Romeo and Fiat – had higher sales but on very low volume.

After several quarters of decline, Jeep sales rose 7% to 152,818 units in the fourth quarter. Still, sales remain well below past sales levels. For comparison, the brand sold more than 221,000 vehicles in Q4 2019.

Jeep’s volume model, the Grand Cherokee, had a 22% sales increase to 61,723 units. Compass sales were also up by 28% to 24,613 units.

Gladiator sales fell 22% to 13,660 units, the lowest sales volume for a fourth quarter since the pickup was introduced in 2019. Likewise, Wrangler sales hit their lowest volume for the past five years, down 12% from a year ago to about 30,000 units. Stellantis recently trimmed production at the Toledo, Ohio, plant that makes both models due to slow sales and inventory build-up.

Jeep’s most expensive models, the Wagoneer and Grand Wagoneer, increased year-over-year sales. Wagoneer sales jumped by 39% to 8,266 units, its best sales level for the quarter since it was introduced in 2021. Grand Wagoneer sales rose 9% to 2,483 units.

Stellantis has dropped its two “cheap Jeeps” – the Cherokee and the Renegade. Less than 1,600 Cherokees were sold in the fourth quarter. The Renegade had a 177% sales hike to 10,450 units as the brand sold it down.

Ram sales rose 4% to 134,363 units, the lowest level in the last five years for the quarter. For comparison, Ram sold a high of more than 190,000 vehicles in 2019. Ram pickup sales rose 7% higher to 112,486, but that was the next lowest to a year ago. By contrast, Ram sold more than 172,000 pickups in the fourth quarter of 2019.

Dodge sales declined 8% to 42,514 as it sold down its Challenger and Charger muscle cars, which will be replaced this year by EVs. Challenger sales fell 26%; Charger sales dropped 30%. Durango sales dipped by 2%. The new Hornet kicked in 4,964 sales.

Chrysler brand sales plummeted by 59% to 10,371 vehicles, about a third of what it sold five years ago. Sales of the Pacifica minivan fell 63% to only 8,356 units. Three years ago, Chrysler sold 38,821 of them in the quarter.

Alfa Romeo sales rose 9% to 3,308, still far off its 2020 high of more than 6,000 sales. The new Tonale contributed 1,233 sales, while Giulia and Stelvio sales were down double digits.

Fiat sales rose 51% from the year before but still only sold 178 vehicles. By comparison, Fiat sold more than 3,400 vehicles in Q4 in its best year of 2018.

Stellantis’ Market Share Fell to 8.80%

Underperforming the industry, Stellantis’ market share fell to 8.80%, down from 9.63% a year earlier and its lowest for the quarter in the last five years. In 2019, Stellantis hit a high for the quarter of 12.66% market share.

Both volume brands had their lowest share for the quarter in at least five years. Jeep’s share fell to 3.92%, down from 3.97% a year ago and from 5.17% in 2018 and 2019. Ram share declined to 3.44%, compared with 3.60% a year ago and 4.60% as recently as 2021.

Dodge’s share dropped 1.09% from 1.28% a year ago. It was more than double that in 2018 and 2019. Chrysler’s brand share plummeted to a scant 0.27% compared with 0.69% a year ago and a fraction of what it was in 2021, when it held 1.24% share.

Alfa Romeo and Fiat barely registered any market share.

Stellantis’ Boosted Incentives by 166% to $4,404 Per Vehicle

Stellantis boosted incentives by a whopping 166% in the fourth quarter to an average of $4,404 per vehicle, according to Cox Automotive calculations. That level of incentive spending is nearing the amount Stellantis spent before the pandemic. It is well above the industry’s average of $2,511 per vehicle in December, according to Kelley Blue Book numbers.

STELLANTIS U.S. INCENTIVES FOR Q4 2023

Jeep had the heftiest incentive hike at an average of $3,657 per vehicle compared with $1,036 per vehicle in the year-ago quarter. It was Jeep’s highest per-vehicle average since 2021, when it was a mere $3 more.

Ram more than doubled its incentives to an average of $6,129 per vehicle, its highest amount since 2021, when it was over $7,000. Dodge spent, on average, $2,293 per vehicle, up 66%. Chrysler’s average incentive was $1,320, up significantly from $145 in the year-ago quarter but well below the $5,500 to $6,000 spent before the pandemic.

Alfa Romeo and Fiat lowered incentives. Alfa Romeo dropped its incentives by 12% to an average of $3,251. Fiat incentives fell 27% to an average of $1,414 per vehicle.

Stellantis’ ATP Jumped 6% to $59,292

Stellantis posted big gains in its average transaction price (ATP), according to Cox Automotive calculations. While most automakers had only tiny increases or saw flat to negative moves in ATPs, Stellantis’ ATP in the fourth quarter jumped by 6% to $59,292, a level well-above either Ford or General Motors. That was a high for the quarter and well above the $41,578 of Q4 2019. The fourth-quarter ATP also put Stellantis well above the U.S. average of $48,759, which was down 2% from the year earlier, according to Kelley Blue Book.

STELLANTIS U.S. AVERAGE TRANSACTION PRICES FOR Q4 2023

Ram had the biggest hike, up 10% to $66,987. The Ram pickup had an 8% increase to $69,369. The ProMaster commercial van posted a 13% hike in its ATP to $55,182.

Jeep’s ATP was nearly flat at $54,434. Its various models were flat, down or up low single digits. Jeep’s most expensive model, the Grand Wagoneer, had a small gain in ATP, which came in at $102,669. The Wagoneer’s ATP was $76,965. The brand no longer has cheap Jeeps. Its least expensive model is now the Compass, which had an ATP of $37,412, almost $9,000 higher than in 2019.

Dodge’s ATP rose 8% to $55,264, driven by buyers nabbing special-edition models of the last of the gas-powered muscle cars. The Challenger’s ATP shot up by 21% to $62,651. The Charger’s ATP edged 3% higher to $49,614. Durango got a nearly 10% hike to $59,737. The new Hornet is Dodge’s least expensive model, with an ATP of $41,555.

Chrysler brand’s ATP was down 2% to $50,621. The Pacifica minivan’s ATP edged 2% higher to $51,413. The 300, which is being discontinued, was up 13% to $47,455.

Fiat’s ATP plummeted by 30% to $23,701. Alfa Romeo’s slipped 2% to $51,997.