The Rise and Fall of the Jeep Gladiator #

Unveiled in 2018 as the first Jeep pickup in over 25 years, the Jeep Gladiator initially seemed poised for success. Sales doubled in 2020, reaching nearly 90,000 in the US, despite pandemic-induced production challenges. This early promise faded after Fiat Chrysler’s merger with PSA Group to form Stellantis in early 2021.

Stellantis prioritized producing higher-priced vehicles, leaving many traditional Jeep buyers searching elsewhere. Only a few Gladiators are now available below $40,000, with some reaching $72,000. Consequently, Gladiator sales have steadily decreased, now down 21% from the 2020 peak. Overall Jeep sales have plummeted 36% from pre-pandemic levels.

The issue extends beyond Jeep. The Ram brand struggles to compete, and Chrysler has dwindled to offering mainly the Pacifica minivan. Stellantis announced the indefinite layoff of 1,100 workers at its Toledo plant following the discontinuation of the Ram 1500 Classic.

This shift toward higher prices significantly affected consumer spending power, particularly among traditional Stellantis buyers, often with lower credit scores. The industry’s highest average vehicle price of $58,000 in late 2023 did little to rectify slipping sales.

The National Dealer Council sounded an alarm about disastrous decisions prioritizing short-term profits. Plant closures, job losses, and executive departures followed, exacerbating market share loss and declining stock prices. Despite claims of improvement, dealer concerns persist as Stellantis attempts to navigate the fallout.

Amidst these challenges, the United Auto Workers union considers a strike, citing unmet contract agreements. Meanwhile, critics argue for a strategic pivot rather than further production cuts, questioning the viability of Stellantis’ current vehicle lineup for entry-level buyers.