Stellantis sales drop 9% in first quarter

U.S. sales of the maker of Chrysler, Dodge, Jeep and Ram vehicles dropped 9% in the first quarter year-over-year, as negative market conditions hit deliveries.

Stellantis NV sold 368,327 vehicles in the first three months of the year compared to 405,221 a year ago. Only Chrysler and Dodge, the two brands promoting the final model year of gas-powered vehicles in their lineup, saw increases, while demand fell for Jeep SUVs, Ram pickup trucks and other vehicles as rising interest rates, inflation and fears of recession make some consumers cautious.

The 2023 Jeep Grand Cherokee 4xe 30th Anniversary edition is a plug-in hybrid. Sales of the Grand Cherokee were down 27% year-over-year in the first quarter.

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“As we continue to navigate the market conditions transpiring across the automotive industry, together with our dealer network,” Jeff Kommor, U.S. head of sales, said in a statement, “we are making the necessary adjustments to meet our customer’s expectations.”

Jeep sales dropped 20% year-over-year with the Wrangler down 17% and the Grand Cherokee down 27%. Their 4xe plug-in hybrid versions represented 38% and 13% of their sales, respectively, making them the No. 1 and No. 2 best-selling PHEVs in the United States, according to the company, citing S&P Global Inc. and promoting the up to $7,500 federal subsidy on them available through April 17. Stellantis doesn’t yet sell any all-electric vehicles in the United States.

Both the Grand Wagoneer and Wagoneer SUVs saw sales drop 59% after the automaker cut the third shift at Warren Truck Assembly Plant in October because of parts shortages, to address quality concerns and to ramp up production of the longer wheelbase models.

The only Jeep whose sales increased was the Cherokee by 31%, which is no longer in production after the Belvidere Assembly Plant in Illinois went idle indefinitely at the end of February.

Ram sales dropped 7%. Pickups were down 17%, as a fire risk for heavy-duty trucks resulted in a recall in February of 250,000 vehicles. The ProMaster and now-discontinued ProMaster City commercial vans had their best first quarters. The company opened reservations for production of the all-electric Ram 1500 REV in February. Stellantis says its commercial sales in the first quarter rose 67% year-over-year, with Ram’s commercial sales rising 64%.