Stellantis: Vehicle price cuts “a race to the bloodbath”

https://www.arcamax.com/business/businessnews/s-3071586

sample quote

For now, the automaker is on track with EV goals, CEO Carlos Tavares said, including finally entering the all-electric market in the Unites States. Stellantis' U.S. sales fell 1% last year, as competitors reported increases. But Tavares said pricing only will come down to the degree that the automaker can reduce its costs. As Tesla Inc. slashes pricing on its electric vehicles, Tavares says he's unwilling to jeopardize profitability, because EVs are 40% more expensive than their gas-powered counterparts and the automaker needs to invest in better technologies and efficiencies to survive the transition.

"If you just go and cut pricing, this regarding the reality of your cost situation, it's a race to the bottom, and a race to the bottom will end up with a bloodbath," Tavares said during a virtual presentation. "And that's exactly what I'm trying to avoid."

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My guess is that Tavares has been told European governments will not allow a company with his number of employees to go bankrupt.

On the other hand Tesla could go bankrupt.

For the time being, the big automakers still have ICE and hybrid vehicles to sell along with EV. Tesla has been zipping along basically competition free since inception. Tesla has no fall back. It ain't gonna be pretty.

Situation is exacerbated by the gubmint picking winners and losers. Tesla carries no legacy costs and has only spent money on technology that is being forced on the competition, not what people actually prefer to buy in a free market scenario.

Teslas are the only EV's that are selling

I sure don't want an EV (glorified golf cart) of any brand.

You mean you don’t want something that catches fire in your home during recharging and requires tens of thousands of gallons of water to keep from thermal runaway? People are facing this issue in rentals right now. Do you allow it or not? Guys don’t leave drill batteries plugged up in their trailers in the way home from the races for a reason. Too many have seen the fires that happen out of nowhere and once you notice it, it’s too late to do much

.
Price cuts not just on electrics, either.

2023 Pacifica hybrids and 2023 Challengers at 0% financing for 72 months, Jeep following this, and Ram tossing lots of cash on the hoods of new sales. Stellantis and FIAT have a record amount of unsold vehicles, somewhere in the area of twice the national average for manufacturers.

0%/72 or even 0%/84 doesnt mean much when they inflated the price of the car/truck by 30-50% during covid and TRYING to keep it there. Nissan just told US suppliers they'll pull Rogue production out of the US unless they slash their inflated parts prices. Nobody is buying at these dumb covid prices

Yep, been shopping for a vehicle lately, I;d rather buy used, I get way more for way less.

Where are you seeing the zero percent at? I keep looking at a local car and it mentions like 7% for excellent credit. Dodge site has something like that as the incentive package.

Just got a low mile clean 03 Durango. 0 payments 0% interest. I can buy 20-25 similar vehicles for the price of 1 new one.
I won't spend the price of 1 currently new vehicle in my entire lifetime of driving.

2023 Jeep Renegade 4X4 Altitude


FCA 15% OFF MSRP - $5,200
Dealer discount was another $2,800


Financing around 6.75%

I own a 2017 since new - Zero issues in just under 100K driving in WI snow and cold
Man I just screwed myself

Anyways , thinking of pulling the trigger

Generally the discount will switch from month to month, they'll either use the money to buy the rate down or just put the cash on the hood. Cars are so overpriced right now that some are offering both

That’s interesting. I’ve been watching this same car at the local dealer since about May. The price moved down slightly over the months, interest rate offers never came down, might’ve gone up even, and the price bottomed out back around first of November. Since then it has risen about two grand. It’s the same car for sure. I stopped and sat in it back about October and it’s the same vin and pics. A zero for 72 months advertised with the lowest price might’ve moved me. Guess this local dealer isn’t hurting, even with all the challengers piled up on his several lots.

MAY?? I'd bet money that thing got punched a long time ago (a new car they mark as sold to get the sales point) that is now a used car and loses all incentives and gets tagged with a higher interest rate. You'll get a bigger discount but higher rate with those, pointless over a new one. I'd jump on the sites and search, buy plane ticket, drive home if you want a new challenger, they aren't making them anymore

It’s the same rough price at other dealers, none of which advertise zero percent. Hence my wondering where you have seen it offered. I see that no place, not at dodge, not at dealers.

Lots of these cars sit unsold at dealers. I think like 7500 new challengers exist on lots. None are the exact build I’d would’ve specs,,but some are close enough I think. I have my pick within a couple hundred miles for instance. Seems Stellantis killed the car line by saying they would stop building them. So the 170s etc were snapped up, while Scats on down sit unwanted. But yeah, a zero might get things moving. Production I saw was only about 45,000 for the year, I thought more people would jump at their last chance to order up a new car for the last time.

I might have to break almost 7 years of sobriety and not drinking if that happened

break sobriety if tesla went bankrupt ?
i would celebrate for sure, but if i were you, i wouldn't go THAT far.............

If Tesla went bankrupt should Musk be put in Debtor’s prison?

The original colonies were pioneers in the laws of Bankruptcy compared to Europe.

We should not underestimate how “risk taking” helps economic growth and improvement of machinery.

How a shirtmaker and his sewing machine mechanic took over the “Volcanic Repeating Arms Co” and with new leadership turned out the “Henry Rifle” and then the Winchester Rifle is a classic example.

Even Horace Smith and Daniel Wesson learned from “financial failure” and went on to “second chance” success.

Elon needs to reduce his daily dose of THC.

How much of a dose of “Yeast piss” he drinks does not get reported as frequently but cutting that out might improve his sleep and performance while awake.

I’ve wondered if Tesla was still profitable because of the smog credits they sell to other makers? Or if they are turning a buck on their cars now? If others sell more evs, will Tesla start losing money again?

I read this and thought SRT wrote it.

I found one I liked and there is no zero offered, not from any dealer I found and not from dodge. I sure didn’t find any place offering both a discount and zero as was implied here.

Car I called on was priced at sticker online and they won’t budge. I explained when they started texting about it that my local place has the same spec car with the sunroof I don’t want for about 10% under sticker. I sent a link to that car and these people ghosted me. Good luck selling these things then. With as many unsold sitting in lots all across the country, into the thousands, it’s going to be next year before they clear them all. Linda looking like the wing cars all over again.