Chrysler’s only product is a dying minivan, and Stellantis could send it to the junkyard
Seven seats and still struggling… American auto icon Chrysler could be at the end of its road. The century-old car brand (owned by Stellantis) was once an industry titan, but its fate now rests on the success of the only vehicle it still makes: the Pacifica minivan. Once a booming category, the serially uncool minivan hasn’t been thriving in its middle age. Sales of the Pacifica were down 44% in the most recent quarter, and things might get worse.
Empty bucket (seats): The Pacifica is built in Ontario and its sales could be slammed by President-elect Trump’s proposed 25% tariff on Canadian imports. Still, Chrysler says it’s bringing back a lower-cost Canadian-built minivan, the Voyager, to the retail market next year.
Suburban sabbatical: US minivan sales peaked in 2000 with 1.4M sold, but just 306K were driven off US lots last year. Only three models are still being made, one each from Chrysler, Honda, and Toyota. Kia rebranded its minivan to a “multi-purpose vehicle” in 2021.
Flop era: Over the past quarter century, Chrysler has changed hands three times and declared bankruptcy.
It starts with the parents… Stellantis, which also owns Jeep, Dodge, and Ram, hasn’t set a great example for Chrysler. The company’s share price is down more than 40% this year. In its most recent quarter, Stellantis said its US sales plunged 20% from last year. Rocky relationships with dealers, suppliers, and unions led its board to force out its CEO this week. Pricing remains a core issue: Stellantis’ average-vehicle price was the industry’s second highest in Q3.
Name recognition only goes so far… Faced with putting out fires across much of its business, Stellantis may not be willing to keep Chrysler around if it doesn’t make financial sense (especially since it only makes a minivan). Analysts expect a brand audit to be one of the next Stellantis CEO’s first moves.