The Jeep Gladiator made its debut in 2018 under the ownership of Fiat Chrysler, marking the brand's return to the pickup truck segment after a hiatus of over 25 years. The initial response was overwhelmingly positive, and the vehicle seemed poised to meet the high expectations set for it. Following its launch in 2019, sales skyrocketed in 2020, nearly doubling to approximately 90,000 units in the United States.

This surge occurred despite challenges posed by the pandemic, which disrupted production, and yet the Gladiator emerged as one of the few bright spots in that tumultuous year. However, this meteoric rise in popularity was not sustained. With the merger of Fiat Chrysler and PSA Group in early 2021, resulting in the formation of Stellantis, the new company shifted its focus towards vehicles with higher price tags and greater profit margins.

This strategic pivot led to a prioritization of the production of more expensive models, utilizing the limited availability of essential components like computer chips for these high-end vehicles. Consequently, many traditional Jeep and Fiat Chrysler customers were compelled to look for alternatives elsewhere. A review of Jeep's website reveals a scarcity of Gladiator models priced below $40,000 nationwide, with the most affordable option starting at $39,790.

On the other hand, some Gladiator models in dealerships now boast price tags as high as $72,000. As a result, Gladiator sales have been on a steady decline since their 2020 peak, with a further drop of 21% observed so far this year. The overall sales of Jeep have plummeted by 36% compared to pre-pandemic levels, significantly diminishing its market presence.

Stellantis' challenges are not confined to the Gladiator or even the Jeep brand. The Ram truck brand has also been struggling to compete with the truck offerings from General Motors and Ford. Meanwhile, Dodge has discontinued some of its popular models in anticipation of their electric counterparts. Chrysler, once the cornerstone of the company, now primarily focuses on a single model, the Pacifica minivan, which is arguably in one of the least lucrative segments of the US market.

Post the US presidential election, Stellantis announced the indefinite suspension of one of the two shifts at its Toledo Assembly Complex South plant, which is responsible for the production of the Gladiator. This decision resulted in the layoff of approximately 1,100 workers. The company stated, "These are difficult actions to take, but they are necessary to enable the company to regain its competitive edge and eventually return production to prior levels."

Virtually every model sold by Stellantis is experiencing double-digit year-over-year sales declines, with high prices leading to a backlog of inventory in dealerships. By the fourth quarter of 2023, the average selling price of a Stellantis vehicle in the US reached $58,000, the highest in the industry, according to data from Edmunds. Although the average price has since decreased, it remained the second-highest in the industry, just under $55,000 in the third quarter, trailing only Ford Motor, including its luxury brand Lincoln.

This issue is particularly pronounced for typical Jeep buyers, who traditionally have lower credit scores. This demographic faces higher auto loan interest rates and limited spending power, as explained by Jessica Caldwell, head of industry insights for Edmunds. These buyers are struggling to afford Stellantis' higher-priced vehicles. "They just can't afford this," she said. "That's the wall they're hitting. Fundamentally, they have a product mismatch for the market." Charlie Chesbrough, senior economist for Cox Automotive, added, "They moved to a price point that's too high for their typical customers."

Stellantis also announced layoffs of about 1,200 workers at its Warren, Michigan truck plant, coinciding with the discontinuation of the entry-level Ram 1500 Classic pickup. The elimination of a shift at that plant took effect last month. Both dealers and workers are expressing their frustration.

Three months ago, Kevin Farrish, the head of Stellantis' dealer association, penned an open letter to CEO Carlos Tavares. "We are writing this letter on behalf of the entire US dealer network and its employees," the letter began. "The intent of this letter is to sound an alarm – an alarm not only to you, but to the Stellantis board of directors, your employees, your investors, and suppliers." The Stellantis National Dealer Council had been urging the company behind the scenes for two years, the letter revealed.

The company was on a path to disaster, not just for the dealers, but for all parties involved. "Now, that disaster has arrived," the letter stated. The company's relentless focus on short-term profits for 2023 had devastating consequences for Stellantis, Farris wrote. Market share had been slashed nearly in half. The share price was falling. Plants were closing. Thousands were being laid off. Key executives were "fleeing" the company. "Everyone will suffer the consequences of these disastrous choices," the letter said.

In response, Stellantis issued a statement saying it took "absolute exception" to Farris' letter, stating it has taken steps to reduce excess inventory, and that sales were improving in the latter part of the third quarter as a result. "We don't believe that public personal attacks, such as the one in the open letter from the NDC president against our CEO, are the most effective way to solve problems," said its statement.

The company's workers are also extremely dissatisfied. The United Auto Workers union is considering a new strike at Stellantis, alleging that the company is not fulfilling its contractual obligations. Stellantis denies these accusations and states it will fight any new strike. Farrish noted that some changes since his open letter, including executive shuffling, are helpful. He mentioned that the 2025 models have been repriced lower, and incentives have been offered to clear the backlog of model year 2024 vehicles on dealers' lots.

However, he expressed concern that cutting jobs and production is counterproductive. "You don't get output by shutting plants," he said in an interview. "You're not going to cut your way back into a better situation." While Farrish is concerned about Stellantis overall, the Gladiator also faces specific issues with its price and SUV-like design that limit its appeal. "That was never intended to be a high volume product," he said. "Personally, I'd love to see them produce a smaller size pickup for the Ram brand so we can compete for the bulk of the market." This is a broader issue with Stellantis, which no longer offers the vehicles that it once could to more entry-level buyers, such as the Challenger muscle car, the Cherokee SUV, the Renegade subcompact SUV, and the Chrysler 300 sedan. "It'll be hard to get back the market share they had," Farrish said. "A lot of the products we used to sell a lot of are not being produced today."