Jeep and Dodge’s parent company, Stellantis, will offer hefty discounts and reduce output as it looks to reverse plunging US sales. Stellantis warned of significantly lower profits this year as US sales fall. It’s also facing rising low-cost competition from China globally.
Jeep owner to increase discounts as US sales plunge
Following rival Volkswagen, Stellantis is the latest legacy automaker to cut financial guidance for the year.
Although Stellantis is Europe’s second best-selling auto brand, the company is falling behind in the US. It’s also facing rising competition from Chinese automakers like BYD, which are aggressively expanding overseas.
The company is working to restore normal US inventory levels. By the end of 2024, the automaker aims to have no more than 330,000 units of dealer inventory, earlier than its initial Q1 2025 deadline.
Stellantis said it would introduce significant discounts on 2024 and older model-year vehicles while slashing US output to clear excess inventory.
The company now expects an adjusted operating profit of between 5.5% and 7% in 2024, down from its prior “double-digit” guidance.
The move comes after Stellantis’ US brand sales plunged 21% in the second quarter compared to Q2 2023. Ram (-26%), Dodge (-16%), and Jeep (-9%) sold significantly fewer vehicles compared to last year.
Jeep has already slashed prices on several of its top-selling vehicles, including the Grand Cherokee, Gladiator, and Wagoneer, in an effort to boost sales. However, CEO Antonio Filosa said more could come by the end of the year.
Charging up Jeep, Dodge, Ram sales with new EVs
The price cuts come ahead of Jeep’s first global electric SUV, the Wagoneer S, which will hit US dealerships this fall. Starting at $71,995, the luxury electric SUV will play a key part in revamping sales in the US, its biggest market.
After the electric Wagoneer, Jeep will launch the Wrangler-inspired Recon EV and a new mid-size electric crossover. Stellantis also confirmed a Renegade EV, starting under $25,000, is on the way.
Jeep isn’t the only Stellantis brand going electric. Dodge and Ram will launch their first passenger EVs in the US.
The Ram 1500 REV will be built at Stellantis’ Sterling Heights Assembly Plant, its first US facility to make an all-electric vehicle. Ram’s first electric pickup is due out later this year.
Dodge opened orders for the 2024 Charger Daytona EV earlier this month, starting at $59,995. The high-performance Scat Pack model retains its status in the electric era as the “most powerful electric muscle car” with 670 hp and a 0 to 60 mph time in 3.3 secs. It costs $73,190.
Stellantis CFO Natalie Knight said reversing slumping US sales and rising inventory is the “top priority” going into the end of 2024.
Stellantis chairman John Elkann confirmed to Bloomberg News last week that Stellantis is searching for a successor to replace CEO Carlos Tavares when his contract expires in 2026.
Can electric vehicles help reverse falling Jeep, Dodge, and Ram sales in the US? Stellantis is hoping it will help build momentum. The company’s board of directors is set to meet in the US on October 9, 2024, to develop a turnaround plan.
As part of its Dare Forward 2030, Stellantis aims for 50% of US passenger and light-duty truck sales to be electric by 2030.
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The Mockingbird Solar Center, Ørsted’s largest solar project globally, is now online, next to protected prairie donated by the renewable energy giant.
This massive 468-megawatt (MW) solar farm is set to power 80,000 homes and businesses, providing a major boost to the Texas grid.
But the launch of Mockingbird Solar isn’t just about clean energy – it’s also about restoring precious ecosystems. Ørsted has donated 953 acres of the Smiley-Woodfin Native Prairie Grassland, which sits next to the solar center, to The Nature Conservancy. The donated land is now the Smiley Meadow Preserve, a protected area for tallgrass prairie that’s home to more than 400 species of grasses and wildflowers.
Tallgrass prairies are some of the rarest ecosystems in the US, with less than 1% of Texas’ original tallgrass prairies still in existence. Tallgrass prairie does a lot of heavy lifting for the environment, including storing carbon, preventing floods, and providing crucial habitats for pollinators.
“Native prairies are the rarest landscapes left in Texas – so much so that many people have never seen one,” said David Bezanson, land protection strategy program director for The Nature Conservancy in Texas. He added that preserving Smiley Meadow will not only conserve one of the best prairie remnants left but also help restore other prairie habitats and boost regional biodiversity.
The Mockingbird Solar Center, a half-billion-dollar project, is part of Ørsted’s $20 billion push to expand renewable energy production across the US. Beyond generating electricity, it will inject $75 million into local property taxes, benefiting schools and other public services. The project also created over 550 construction jobs and will continue to be supported by operations staff moving forward.
Ørsted worked with US companies, including First Solar, for solar panels and partnered with local businesses like Drake Construction and Pfifer Farms for construction materials. It also gave more than $50,000 to local volunteer fire departments in Roxton and Brookston.
With Mockingbird Solar now up and running, Ørsted has more than 6 gigawatts of onshore wind, solar, and battery storage projects either in operation or being built across the US.
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CNBC’s Jim Cramer on Friday said companies related to natural gas and oil will thrive under President-elect Donald Trump’s administration and a majority Republican Congress.
“We’re hearing about all sorts of Trump trades right now, and many of these things have made insane moves in less than three weeks, to the point where, actually, they’re feeling precarious to me,” he said. “If you want a sustainable Trump trade, I say bet on the natural gas ecosystem. This is an industry that already had a lot going for it, it just needed some cooperation from the federal government, which it is about to get.”
President Joe Biden’s administration is largely opposed to fossil fuels, Cramer said, and the federal government has worked to block pipelines and paused new liquified gas export authorizations. This dynamic, coupled with a weaker global economy, caused the sector to underperform for much of the year, he suggested. But Trump has shown more favor to the industry, and Cramer pointed out that he tapped prominent oil executive Chris Wright to lead the Department of Energy.
Cramer recommended several stocks in the sector, including energy producers EQT and Coterra. The former is focused on natural gas and recently acquired peer Equitrans, raising the combined company’s valuation to an estimated $35 billion, Cramer noted. He added that Coterra is a good long-term holding and called the company “one of the shrewdest operators in the industry.”
He highlighted pipeline companies, including Energy Transfer and Kinder Morgan, and said he was especially bullish on Enbridge. Enbridge says it transports about 20% of all natural gas consumed in the U.S., and Cramer claimed the Canadian outfit has “strategically located assets.”He also named Cheniere and Sempra, saying the former is the “best play” for liquified natural gas exports.
“Seasonally, this is a good time for the commodity,” he said, pointing out that natural gas itself has climbed since the election. “But I also think there’s some optimism about the future of the industry driving this move.”
Jeep’s first global luxury electric SUV will arrive at US dealerships any day. Despite its $72,000 price tag, lease prices for the 2024 Jeep Wagoneer S EV start at just $599 per month.
Jeep claims the Wagoneer S packs “exhilarating performance.” With 600 hp and 617 lb-ft of torque, the big-body SUV can sprint from 0 to 60 mph in just 3.4 seconds. Its 100 kWh battery pack also gives it a driving range of over 300 miles.
The electric SUV is unmistakably still a Jeep, but it did get several upgrades to distinguish it as an EV. The grille is now enclosed without the need to cool a massive engine, giving it a sporty, more modern look.
Jeep revamped its design with a new illuminated seven-slot grille with ambient cast lightning. It also fine-tuned its profile, adding flush door handles, a rear wing, and integrated fins for better airflow.
The first Jeep Wagoneer S Launch Edition models get exclusive dark accent design elements like 20″ Gloss Black Wheels.
Inside, the electric SUV is loaded with the latest tech and connectivity, including a best-in-class 45″ of usable screen space. The setup includes a 12.3″ center screen and an exclusive 10.25″ interactive front passenger screen.
Jeep already announced that the 2024 Wagoneer S EV will start at $71,995, but now the company has revealed lease prices for the first time.
According to Jeep, the 2024 Jeep Wagoneer S Launch Edition can be leased for $599 per month for 36 months (10,000 miles per year). The deal includes $4,999 due at signing and a $7,500 EV incentive. However, you may want to act fast, as Jeep’s offer is only good until December 2, 2024.
Jeep Wagoneer S vs Tesla Model Y
Starting Price
Range
Lease Price
Jeep Wagoneer S Launch Edition
$71,995
+300 miles
$599/mo
Tesla Model Y RWD
$44,990
320 miles
$299/mo
Tesla Model Y AWD
$47,990
308 miles
$399/mo
Tesla Model Y AWD Performance
$51,490
279 miles
$599/mo
In comparison, Tesla Model Y RWD lease prices start at $299 for 36 months with $2,999 down (10,000 miles). The Performance AWD model starts at $599 per month. In an end-of-year promo, Tesla also offers 3 months of free Supercharging and Full Self-Driving.
Ready to drive off in your new electric SUV? We can help you get started. You can use our links below to view offers on the Jeep Wagoneer S and Tesla Model Y at a dealer near you.
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