Jeep, owned by Stellantis, has temporarily stopped production of its popular Wrangler and Grand Cherokee models due to high inventory levels and declining sales. The decision reflects broader challenges faced by the US manufacturing sector, including weak demand and fluctuating oil prices. The halt in production comes as Stellantis aims to manage inventory and improve operations in the US market.
Ford, General Motors, and Stellantis are all re-evaluating their electric vehicle plans, scaling back investments and delaying launches due to lower-than-expected demand. The shift in strategy is impacting suppliers and workers, raising concerns about the future of the EV market.
Stellantis CEO Carlos Tavares is heading to Detroit this week to address the company’s declining performance in North America. The automaker has seen a significant drop in profits and sales in the region, leading Tavares to personally oversee a strategic turnaround effort.
Stellantis, the automaker, is facing a lawsuit from shareholders accusing them of misleading investors about inventory levels and financial performance. The lawsuit alleges that the company inflated its stock price with positive statements about its business, despite declining earnings and operating margins. Stellantis denies these allegations and plans to fight the lawsuit.
Jeep’s electrification plans are gaining momentum with the introduction of the 2024 Jeep Wagoneer S, the brand’s first electric vehicle for North America. The Wagoneer S is a departure from the brand’s traditional SUVs, featuring a streamlined shape and luxurious interior. It shares its platform with the Dodge Charger Daytona and will offer a dual-motor powertrain producing 600 horsepower and 617 pound-feet of torque. The Wagoneer S also boasts some off-road capability, but its ground clearance is less than that of the Subaru Crosstrek.
Several companies made headlines before the opening bell on Tuesday due to their financial performance.
McDonald’s shares dropped nearly 2% after reporting lower-than-expected quarterly earnings and missing analysts’ estimates for same-store sales. Worldwide sales increased by 1.9%, falling short of the anticipated 2.1% growth.
Stellantis, formerly known as Chrysler, lost 3.6% as first-quarter revenue missed expectations. The Netherlands-based automaker’s revenue declined by 12% due to reduced sales and foreign currency effects despite strong net pricing.
Coca-Cola’s stock slipped about 0.4% despite beating analysts’ expectations slightly. The soft drink maker reported adjusted earnings per share of 72 cents and revenue of $11.30 billion.
Tesla’s shares fell 1.9% after surging 15.3% on Monday, as some investors realized gains from the previous day’s rally. The electric vehicle maker received approval from China to roll out its advanced driver-assistance service technology in the country.
Maserati’s first GranCabrio convertible since 2019 will be available in the U.S. this summer. Meanwhile, Stellantis, the global automaker that owns Maserati, reported a 12% revenue decline in the first quarter due to lower sales and foreign exchange effects. Despite the decline, Stellantis plans to launch 25 new models this year, including 18 battery-electric vehicles. The company expects improved growth and profitability in the second half of the year as they introduce new products.
Stellantis, the parent company of Jeep, has announced plans to lay off an unspecified number of workers at its U.S. factories in the coming months to address the rapidly changing global auto market and the transition to electric vehicles. Despite reduced U.S. sales in the first quarter and increased capital spending, the company aims to improve productivity and ensure long-term sustainability. Details regarding the start of layoffs and specific reasons were not disclosed, but Automotive News reported recent layoffs at a Ram pickup truck factory in Michigan. CEO Carlos Tavares emphasizes the need for cost-cutting measures to make electric vehicles affordable for the middle class.
Stellantis, the parent company of Jeep, announced plans to lay off an unspecified number of workers at its U.S. factories in the coming months. This decision stems from a rapidly changing global auto market and increased capital spending for the transition to electric vehicles. Despite recent declines in U.S. sales and higher labor costs, Stellantis emphasized that these actions are necessary to enhance productivity and ensure long-term sustainability. While exact details and reasons for the layoffs remain undisclosed, Automotive News reported that 199 workers were laid off at the Ram pickup truck factory in Michigan.
Tesla faces layoffs, including its entire marketing team, after a year of advertising initiatives. Electric vehicle sales rise globally, but remain stagnant in the US, with pricing and charging infrastructure cited as barriers. General Motors reports strong earnings of $2.98 billion in the first quarter, driven by popular models like the Silverado and Equinox. Stellantis implements layoffs at its US production facilities, affecting nearly 200 workers at its Ram site in Michigan.
