Frustrated Dealers May Succeed in Getting Corp to Reduce Ram Truck and Jeep Prices

[AbleGuy]

Jeep and Ram Dealers Gripe to Stellantis as Cars Sit on Lots​

https://www.wsj.com/business/autos/stellantis-dealerships-rams-jeeps-demand-sales-087b514c

It seems that Stellantis higher ups are getting some unhappy pushback from frustrated dealers, who are unhappy with the amount of new stock, including Jeep and Ram Truck models, sitting around unsold on their lots.

Whether this will result in some better deals on Jeeps and Ram Trucks as summer approaches, or even by the end of the summer season, remains to be seen. But it does seem like there should be a stronger incentive for corporate to help dealers sell these unsold units by coming up with some new incentives and or lower prices. 🤞🏻

One of the main takeaways of the article is that Stellantis market share has been in decline the last few years. And that should be concerning. One of the best ways to turn that statistic around would be to make their vehicles more affordable, obviously. Another thing might be to make them more reliable.

According to the WSJ…

Many of the Jeep and Ram brand dealers invited to the Detroit area this spring to meet with Stellantis executives shared expressed frustration about the number of unsold cars and trucks ‘piling up on their lots,’ as for some of these dealers their inventories had grown to a three-month supply (which is considered above the industry average).


The article points out:
“Stellantis’s U.S. sales hovered below 9% of the U.S. market in the first quarter, and fell to 7.7% in April. That was down from around 10% last year and 12.5% in 2020, according to research firm Motor Intelligence—a massive decline in an industry where a half-point drop is enough to rattle car executives.”

If you are shopping for a new Jeep or Ram pick up truck, you might want to wait and remain hopeful that better deals on these rigs are coming sometime sooner than later.

What does this say to you about new vehicle prices in the US? What are your thoughts…?


(if you were interested in reading the entire article and don’t have a Wall Street Journal subscription, here below another link to the full story)

MSN

 

[Todd n Natalie]

It's not just Ram /Jeep. The MSRP's of every brand have risen to insane amounts.

My 2022 F150 XLT had an MSRP of 66K. That same truck today is 82K..... For a mid trim F150 that is insane.

A similarly equipped gas pot XLT Super Duty Crew cab w/ 6.75" bed is near 90K

I was curious so built a decently loaded Silverado 3500HD LT with the 7Z1Sport gas pot and it came out to 3K more than a similarly equipped F150....

 

[lucilius]

It is and probably will be for some time a soft market. Prices should come down but these are strange times. I don't envy any corporation trying to balance building and selling cars/trucks people will actually buy with rapidly changing government regulations in a fraught economy that doesn't seem poised to improve. Belt-tightening should be common practice if not the national pastime. I'm personally hoping logic sets in and, amid all the hue and cry about iniquities/inequities, violence, domestic terrorism and corrupt leaders & elites, Toyota wakes up and starts selling diesel-powered "Poverty Pack" Landcruisers in the US soon. Any cursory look through the daily news proves that we operate like a standard-bearing third world country and, accordingly, should be entitled to all the rights and privileges pertaining thereto (ideally this means diesel 70-series LC's not the new ones that look like mildly sanded, life-size lego models)
It has been far too long since I rolled up a window by hand, watched analog gauges, and got a hand-calculated-of-course 30mpg+ in a rig with locking diffs and a manly amount of ground clearance...

 

[chet6.7]

It has been far too long since I rolled up a window by hand, watched analog gauges, and got a hand-calculated-of-course 30mpg+ in a rig with locking diffs and a manly amount of ground clearance...

Roof rails and vent windows, bring them back.

 

[Todd n Natalie]

Roof rails and vent windows, bring them back.

There will be vinyl bench seats, bias plys, carbs, points and leaded fuel for all! And a merry Christmas!

 

[SDDiver5]

Even base model trucks. Like bare bones are still 50k. It's ridiculous.

 

[llamalander]

It's probably worth mentioning that the "freedom" to borrow insane amounts of money for years of indentured servitude has contributed to the stratospheric prices of vehicles and houses--valuations beyond their value.
Without this "assistance" most of the country couldn't by a vehicle that eclipsed their annual earnings or a house 10-20 times the cost of the one they grew-up in.
Having access to usurious credit is billed as an opportunity, but it seems to serve a pretty small percentage of people, mostly those who issue contracts and not the ones who sign them.
Buyer-beware, free-market, yada-yada, there's thumbs on the scale and this is a sign of it. I'm going back to my cave and I hope this is all fixed when I come out again!

 

[ThundahBeagle]

There will be vinyl bench seats, bias plys, carbs, points and leaded fuel for all! And a merry Christmas!

Wouldn't mind the bench seats, pull-down windows and standard shift. But bias play, carbs, points and leaded fuel...at least put me in the 90's so I can have throttle body injection but an easy to work on, bullet proof 5.7 full size Chevy Blazer, even IF the 4L60E was a little wonky

 

[ThundahBeagle]

Even base model trucks. Like bare bones are still 50k. It's ridiculous.

Some thing like that you see at U-Haul, Chevy Silvy, 2wd, base, 8ft bed, built for tow-haul...is THAT 50k now?

 

[Zeep]

I feel all of your pain, but, I ain't ever going back to vinyl seats!

 

[Ozarker]

Price gouging up and down the supply chain.

Unemployment at basically 4%, stocks at record highs, is a strong economy regardless of what you're supposed to believe. It's basically economic sabotage using Covid excuses and misinformation to widen the gap of "you and them".

Question- how many vehicles are sold by the Big 3 to governments in the U.S.? Next, how many are sold to large corporations?

Some buyers don't care what the price is, seems someone said "let them eat cake".

I bet, if you check it out, prices of goods and services are up all over the industrialized world.

 

[86scotty]

I've been very fortunate in the last few years to get to the point where I can pay cash for about any vehicle that I want. I am not bragging, I'm not rich and not young. 3 years ago I paid cash for the first time ever for a 2021 loaded Wrangler for my wife, because we could and because it's what she wanted. It was a very satisfying feeling. But, I've got to say, even though I slightly overpaid and traveled pretty far for what I wanted I do not care one bit about doing it over and over. It was a box that I checked. Felt kinda cool to buy a new vehicle for cash after working too hard for used junk most of my life. But that was it.

$75k for a new vehicle now? It's just insane. I'll vote with my feet and drive used stuff happily the rest of my days.

 

[AbleGuy]

Here’s a good follow to this general topic:

The 'absolute worst' of times for car buying are over

The “absolute worst” of times for car buying are over as dealerships slash prices heading into the summer, analysts say.

www.nbcnews.com

 

[AbleGuy]

What an F150 used to cost:

These prices all represent the entry-level models for the first year of each generation. Original MSRPs are provided by the National Automobile Dealers Association, and the inflation calculated by the Bureau of Labor Statistics' official online tool is reflected in italics.

• 1948 Ford F1 (First Generation): $1,279 - $13,836.62
• 1953 Ford F100 (Second Generation): $1,362 - $13,128.14
• 1956 Ford F100 (Third Generation): $1,577, - $15,087.06
• 1960 Ford F100 (Fourth Generation): $1,972 - $17,256.28
• 1967 Ford F-100 (Fifth Generation): $2,237 - $17,433.23
• 1973 Ford F-100 (Sixth Generation): $2,889 - $17,387.85
• 1980 Ford F-150 (Seventh Generation): $5,697 - $18,774.76
• 1986 Ford F-150 (Eighth Generation): $8,373 - $19,587.47
• 1991 Ford F-150 (Ninth Generation): $11,967 - $22,795.45
• 1997 Ford F-150 (10th Generation): $17,875.00 - $28,806.05
• 2004 Ford F-150 (11th Generation): $17,900.00 - $24,781.06
• 2009 Ford F-150 (12th Generation): $22,000 - $26,714.92
• 2015 Ford F-150 (13th Generation): $26,615 - $29,198.64

From

Here's How Much the Ford F-150 Has Increased in Price Over the Decades

The first-ever Ford F-Series had a base MSRP of just $1,279. As you probably guessed, that's no longer the case.

www.thedrive.com

 

[Ozarker]

What an F150 used to cost:

These prices all represent the entry-level models for the first year of each generation. Original MSRPs are provided by the National Automobile Dealers Association, and the inflation calculated by the Bureau of Labor Statistics' official online tool is reflected in italics.

• 1948 Ford F1 (First Generation): $1,279 - $13,836.62
• 1953 Ford F100 (Second Generation): $1,362 - $13,128.14
• 1956 Ford F100 (Third Generation): $1,577, - $15,087.06
• 1960 Ford F100 (Fourth Generation): $1,972 - $17,256.28
• 1967 Ford F-100 (Fifth Generation): $2,237 - $17,433.23
• 1973 Ford F-100 (Sixth Generation): $2,889 - $17,387.85
• 1980 Ford F-150 (Seventh Generation): $5,697 - $18,774.76
• 1986 Ford F-150 (Eighth Generation): $8,373 - $19,587.47
• 1991 Ford F-150 (Ninth Generation): $11,967 - $22,795.45
• 1997 Ford F-150 (10th Generation): $17,875.00 - $28,806.05
• 2004 Ford F-150 (11th Generation): $17,900.00 - $24,781.06
• 2009 Ford F-150 (12th Generation): $22,000 - $26,714.92
• 2015 Ford F-150 (13th Generation): $26,615 - $29,198.64

From

Here's How Much the Ford F-150 Has Increased in Price Over the Decades

The first-ever Ford F-Series had a base MSRP of just $1,279. As you probably guessed, that's no longer the case.

www.thedrive.com

I could analyze these figure for days! (But won't). Prices only increased =/ 10 grand over my buying life time, so far, to 2015, now add the next 8 years, like I said, the public is getting screwed.