Stellantis Faces Market Share Decline in US

Stellantis, formed from the merger of Fiat Chrysler and PSA Groupe, is facing significant challenges in the U.S. market, with aggressive price increases leading to a sharp decline in market share and a stock price drop of over 51% this year. Dealerships have expressed concerns that Stellantis's pricing strategy limits its market reach, particularly with high-end models like the $100,000 Jeep Grand Wagoneer, which are deemed unaffordable for the average consumer. Analysts from Bernstein have criticized Stellantis for its overconfidence in pricing power, causing it to lose customers to competitors like Toyota. The company's stock performance has been erratic, with shares hitting a low of $12.98 and a high of $29.51 over the past year, amid warnings of underperformance compared to other automakers. Despite strong revenue growth in recent years, Stellantis's profitability has not translated into market confidence, prompting several analysts to downgrade their stock ratings. The automotive giant is now attempting to reduce inventory and reassess its pricing strategy to avoid further alienation of its customer base.