Stellantis' sales in the United States have taken a significant hit, with a concerning 16% drop in the first half of the year. Among its American brands, Jeep saw a 9% decline, while Ram experienced a staggering 26% drop. Chrysler and Dodge also suffered, with declines of 8% and 16% respectively. Due to weak demand, inventory levels are rising, prompting Stellantis to implement measures to address the surplus of unsold vehicles.

Previously, the company aimed to limit inventory levels in the United States to 330,000 vehicles by the first quarter of 2025. However, Stellantis now intends to meet this target by the end of this year, primarily by offering larger discounts on 2024MY and older models. This indicates that Stellantis has an unspecified number of vehicles sitting on dealer lots for at least two years.

In the second half of 2024, the automotive giant plans to ship 200,000 fewer cars to US dealers compared to the first half of 2023. This move effectively doubles the reduction in vehicle shipments compared to earlier estimates. Stellantis cites a "deterioration in the global industry backdrop" and increasing competition from China as contributing factors to its challenges.

An analysis by CarEdge reveals that the Alfa Romeo Giulia is the slowest-selling car in the US, with an inventory supply of 617 days in September. The Stelvio ranks third with 456 days, followed by the Fiat 500e with 454 days. The Jeep Renegade, now defunct, ranks eighth with a 332-day supply, while the Grand Wagoneer L and Dodge Hornet rank ninth and tenth with 327 and 323 days respectively. Dealers are likely to offer significant discounts on these models to clear excess inventory.

Stellantis has revised its outlook for 2024, lowering its adjusted operating income margin from a double-digit figure to between 5.5% and 7%. Approximately two-thirds of this drop is attributed to "corrective actions in North America." Initially projected to be positive, industrial cash flow is now estimated at -€5 billion to -€10 billion.

The situation has become so dire that the US Stellantis National Dealer Council sent an open letter to CEO Carlos Tavares, accusing him of an impending "disaster." The letter also blames Tavares for the "rapid degradation" of Jeep, Ram, Dodge, and Chrysler. Despite this, a spokesperson for Stellantis stated that it is normal to begin the search for a replacement, even though Tavares' contract expires in January 2026.