Stellantis' Second-Quarter Sales Skyrocket by 6.4% Driven by Dodge Durango and Jeep SUVs

Stellantis Reports 6.4% Increase in Second-Quarter U.S. New Vehicle Sales

Higher Sales of Chrysler Pacifica, Jeep Compass, and Dodge Durango

Stellantis, the parent company of Chrysler, Jeep, and Dodge, has reported a 6.4% increase in second-quarter U.S. new vehicle sales compared to the same period last year. This growth can be attributed to higher sales of the Chrysler Pacifica minivan and Jeep Compass and Dodge Durango SUVs. The increase in sales is indicative of a rebound in demand for new vehicles as inventory levels improve and supply chain issues are resolved.

Stellantis Expects Lower Sales Increase Compared to the Industry

While Stellantis' sales increase is significant, industry forecasters predict that the company's growth rate will be among the lowest for the second quarter. They anticipate overall industry sales to have increased by 16% to 18% during the same period. Stellantis' U.S. head of sales, Jeff Kommor, attributes the improved demand to the overall improvement in market conditions and the efforts made by their dealer network to drive sales growth.

Strong Performance of Key Models

Several Stellantis models have performed exceptionally well in the second quarter. Sales of the Dodge Durango tripled compared to the same period last year, while sales of the Chrysler Pacifica minivan increased by 40% and sales of the Jeep Compass grew by 28%. However, some of the company's other models experienced sales declines compared to the previous year.

Positive Outlook for the Industry

Industry experts, such as Cox Automotive, have revised their full-year new-vehicle sales forecast to 15 million vehicles for the broader industry. This represents a nearly 8% increase compared to 2022. The positive sales performances of legacy automakers, electric vehicle manufacturers like Tesla and Rivian, as well as other industry players like Honda, Nissan, and Hyundai, further contribute to the positive outlook for the industry as a whole.

Note: Stellantis' results for the second quarter are yet to be released, and other automakers like General Motors and Ford are expected to report their sales figures in the coming weeks.

Conclusion

Stellantis' recent report of a 6.4% increase in second-quarter U.S. new vehicle sales showcases a positive trend in the automotive industry. While the company's growth rate is expected to be among the lowest for the period, this still indicates a rebound in demand for new vehicles as inventory levels improve and supply chain issues are resolved. For new businesses entering the automotive market, this news presents both opportunities and challenges.

In summary, the recent increase in vehicle sales reported by Stellantis indicates positive market conditions and growing customer demand. While new businesses can find opportunities in this revitalized industry, they must also navigate the challenges of competition, market segmentation, and supply chain management. By carefully studying the market, understanding consumer preferences, and offering unique value propositions, new entrants can position themselves for success in the dynamic automotive market.



Article First Published at: https://www.cnbc.com/2023/07/03/stellantis-new-vehicle-sales-second-quarter.html