Stellantis’ Struggles: What It Means for Car Owners

Stellantis, the global automotive giant behind Jeep, Ram, Chrysler, and several other major car brands, has hit some serious roadblocks. Despite its dominant presence in the automotive industry, Stellantis has been struggling in the U.S. market, facing declining sales, frustrated dealerships, and union disputes that could soon lead to strikes. The company’s stock price has plummeted nearly 50% from its high point in March, and its sales fell 20% in the third quarter alone. This paints a grim picture for Stellantis and raises important questions about what’s next for its car owners.

A Tough Road for Stellantis

Stellantis’ woes in the U.S. stem from several interconnected issues. First, sales have been dropping across key brands like Jeep, Ram, and Chrysler. For instance, Chrysler and Dodge saw over 40% declines in sales, while Jeep sales fell by 6%. These falling numbers reflect larger concerns in the company’s strategy, especially its decision to raise prices significantly in recent years. High interest rates and fewer incentives have made purchasing these vehicles increasingly unaffordable for many buyers.

Dealerships are also struggling. With lots filled with unsold vehicles, dealers are growing increasingly vocal about their dissatisfaction with Stellantis’ leadership. Many blame CEO Carlos Tavares for focusing too much on short-term profits, which led to record sales in 2023 but backfired in 2024. Dealer complaints are amplified by the looming threat of strikes from the United Auto Workers (UAW) union. The UAW has accused Stellantis of breaking promises and has authorized strikes at several plants, which could further disrupt production.

Even though Stellantis has tried to salvage its position by lowering the price of certain models, such as the Jeep Compass and Chrysler Voyager, the company continues to face severe market challenges. Many buyers who would typically opt for larger SUVs like the Jeep Wagoneer or Ram 1500 find themselves priced out of these vehicles or unable to afford updated models due to rising costs.

Why These Problems Matter for Car Owners

For current owners of Jeep, Ram, or Chrysler vehicles, Stellantis’ issues could have real consequences. The company’s declining sales and operational problems may lead to several potential headaches for car owners:

1. Potential Service Delays: If Stellantis faces strikes or further production slowdowns, this could affect the availability of parts for existing vehicles, leading to delays in repairs and servicing. This is particularly relevant for people who own cars that are still under warranty.
2. Resale Value Concerns: With Stellantis’ brands facing significant market declines, car owners might see the resale value of their vehicles drop. Vehicles like Jeep and Ram, which are known for their strong resale value, could take a hit if the company can’t stabilize its position in the market.
3. Warranties and Recalls: Stellantis has already faced recalls this year, including a recall of nearly 200,000 hybrid Jeep models due to fire risks. If quality issues persist, car owners may face additional recalls or service bulletins. A weakened company might also struggle to handle warranty claims promptly, further impacting car owners.

What Can You Do If Your Jeep, Ram, or Chrysler Is a Lemon?

For some car owners, the struggles at Stellantis may extend beyond market concerns and enter legal territory, especially if their vehicle qualifies as a “lemon” under California’s Lemon Law. In California, a car may be eligible as a lemon if it has a substantial defect that affects the vehicle’s safety, value, or use and the manufacturer is unable to repair it after a reasonable number of attempts.

If you own a Jeep, Ram, or Chrysler vehicle that qualifies as a lemon, here’s what you can do:

1. Understand the California Lemon Law: California’s Lemon Law protects consumers who have purchased vehicles with serious defects. If your car has been in the shop multiple times for the same issue, or if it’s been out of service for a cumulative total of 30 days or more during the warranty period, you may be entitled to a replacement vehicle or a refund.
2. Document Everything: Keep detailed records of every repair attempt, including service orders, receipts, and communications with the dealership or Stellantis. This documentation will be crucial if you need to file a lemon law claim.
3. Request a Buyback or Replacement: If your vehicle qualifies, you can request that Stellantis repurchase the car or replace it. In a buyback scenario, the company would refund the purchase price of the vehicle minus a reasonable amount for usage and cover any remaining loan balance.
4. Hire an Attorney: If Stellantis refuses to cooperate or disputes your claim, it may be necessary to hire a lemon law attorney. California’s lemon law is highly consumer-friendly, and in many cases, the manufacturer is required to pay the attorney’s fees, meaning you won’t have to pay out of pocket.
5. Check Recall Notices: If you own a Jeep, Ram, or Chrysler, regularly check for recall notices. Stellantis has faced several recalls in recent years, and being proactive about repairs can help prevent larger problems down the road.

Don’t Let Stellantis Stick You With a Lemon

Stellantis’ struggles in the U.S. market are not just a corporate issue—they could directly affect car owners who rely on brands like Jeep, Ram, and Chrysler. From potential service delays to declining resale values, there are plenty of reasons for concern. For owners dealing with defective vehicles, California’s Lemon Law offers strong protection, ensuring that consumers aren’t stuck with cars that don’t meet reliability standards. By staying informed and understanding your legal rights, you can navigate these issues and protect your investment in the face of Stellantis’ ongoing challenges. If you believe your Dodge, Ram, Jeep, or Chrysler is defective, the professional lemon law attorneys at Johnson & Buxton – The Lemon Law Guys, can help. Learn more by scheduling your consultation with our California lemon lawyers today.