The auto giant behind Chrysler, Jeep and Ram plans to launch a bevy of new, lower-priced cars in an effort to win back cash-strapped customers – including models less than $30,000.
Chrysler, which currently sells just one kind of minivan, will add three new crossover utility vehicles to its lineup, including two that start at less than $30,000.
Parent company Stellantis announced Thursday that it will roll out a total of nine new models under $40,000 by 2030 as part of a $70 billion strategic turnaround plan.
Last year, the company sold just two vehicles under that price point as it leaned into luxury offerings. However, the approach failed to connect with inflation-weary customers, who chose to hold off on new vehicle purchases.
In May, consumer sentiment nosedived to a fresh record low as the Iran war drove gasoline prices higher and fueled inflation fears, according to a University of Michigan survey released Friday.
Meanwhile, the average cost of a new US vehicle has soared to $50,000, according to Kelley Blue Book – and analysts have been warning that cars under $20,000 are a thing of the past.
The cheaper Chrysler cars are an attempt to bring new life to Stellantis’ US business, entering “the $25,000 to $35,000 space, where today none of the American brands compete,” said Tim Kuniskis, head of Stellantis’ North America division, according to Bloomberg.
At its investor day at Stellantis North America headquarters in Auburn Hill, Mich., the company said it is planning to introduce 11 new vehicles in total by 2030 – expanding its share of the US auto market by 50%.
“I think there’s a pragmatic customer coming, and we have to serve them,” Ralph Gilles, who leads Stellantis’ global design team, said on the sidelines of the investor day event, according to the Wall Street Journal. “They don’t want the same things as the boomers did.”
Ram will add a new full-size SUV called the Ramcharger to its lineup, revitalizing a name it used for a 1993 SUV built on a classic pickup chassis.
The brand will also see a new midsize Dakota pickup and a compact truck based on South America’s Rampage vehicle join its ranks – smaller pickups meant to compete with Ford’s offerings.
Stellantis also plans to introduce a high-performance, offroading version of the Jeep Wrangler called the Scrambler.
A new sports car called the Copperhead and a “muscle hatch” vehicle are also joining the Dodge brand.
Stellantis has high hopes for its turnaround, which it believes will grow US volume by 35% in the coming years and help cut $3.5 billion in costs by 2028.
The company is hoping its legacy brands will be able to recapture their glory days, after competing alongside General Motors and Ford Motors for decades.
Years of underinvestment tarnished some of its top brands, like Chrysler, and the parent company last year booked a $26 billion net loss as it reversed electric vehicle ambitions.
Now Stellantis is hoping to capitalize on President Trump’s drastic reduction in US fuel economy standards. The auto giant has historically struggled to meet the greenhouse gas limits, paying over $190 million last year in penalties.
But Trump in December dramatically rolled back the requirements. Ram introduced a new line of gas-guzzling “muscle trucks” just last week.
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