Chrysler’s Used Car Failure

Key Points

• Stellantis N.V. (NYSE: STLA) brands received abysmal rankings in the Consumer Reports Used Car Brand Reliability Report.
• Is the Chrysler brand doomed?
• Take this quiz to see if you’re on track to retire. (sponsored)

Stellantis N.V. (NYSE: STLA), the world’s fourth-largest car company, has enough financial and management problems. Its long-time CEO, Carlos Tavares, has been pushed out. It has just shaken up management at its U.S. operations.

Now, it faces more hurdles in the United States as its brands received abysmal rankings in the Consumer Reports Used Car Brand Reliability Report. Stellantis brands Chrysler, Jeep, and Dodge received the worst grades out of the 26 brands measured.

Stellantis Used Cars

At the bottom of the list.

Used car sales should not be underestimated. According to Statista, Americans bought 38.2 million used cars and light trucks last year, compared to 15.5 million new cars. The National Automobile Dealers Association says used cars make dealers $2,337 per unit, compared to $1,959 for new cars.

Consumer Reports surveyed its members about problems with their used vehicles in the previous 12 months. The measurements were based on the issues reported on cars from the 2015 to 2020 model years. The survey looked at 150,000 vehicles.

The study ranked brands on a scale of 0 to 100. Lexus had the highest figure at 81.

Chrysler was at the bottom of the list with a rating of 29. Jeep ranked next lowest with a rating of 31, followed by Dodge at 33.

The official name of the Stellantis U.S. unit FCA US. Its sales in the third quarter dropped 20% to 305,294. Jeep sales declined 6%. Dodge sales were down 43%, and Chrysler sales dropped 47%.

Is Chrysler Doomed?

Will the Chrysler brand remain?

Chrysler has nearly disappeared as a brand after decades as a major U.S. car company. It has one model–the Pacifica minivan.

While Dodge and Jeep will continue to exist as brands, it is an open question whether Stellantis will keep the Chrysler brand going. CNN recently reported on the question and found skepticism about the brand in many parts of the industry. Chrysler’s sales and brand quality are falling apart, and it is a drag on U.S. operations.

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