FCA U.S. Sales Drop 20% in Q3 2024 Despite Market Share Growth

Incentive programs drive month-over-month share gains as Jeep, Dodge, and Ram see boosts in hybrid and commercial sales.

October 1, 2024, Auburn Hills, Mich. – FCA US LLC recently reported its third-quarter 2024 U.S. sales, revealing a 20% year-over-year drop. While the numbers reflect significant challenges, the company saw notable developments in market share growth, inventory reductions, and continued success in its hybrid lineup.

Sales Snapshot: A Decline Amidst Growth

FCA sold 305,294 vehicles in Q3 2024, a notable drop compared to the same period last year. Despite this, the company achieved consecutive monthly market share growth, starting from 7.2% in July and reaching 8% by September.

This rise is attributed to aggressive incentives across its portfolio, which helped manage the sales slump.

Inventory management also played a key role in stabilizing operations. FCA reduced its dealer stock by 50,000 units during Q3, marking an 11.6% reduction.

“Our incentives strategy was crucial in both managing inventory and growing market share,” said Matt Thompson, Head of U.S. Retail Sales. He noted that these measures will continue through the end of 2024.

Jeep and Ram Brands Lead the Charge

The Jeep brand continued to shine, particularly with its hybrid models.

The Jeep Wrangler 4xe and Grand Cherokee 4xe ranked as the No. 1 and No. 2 best-selling plug-in hybrids in the U.S., bolstered by 10,866 and 3,019 units sold, respectively.

The Jeep Compass also posted a staggering 71% year-over-year increase in sales.

Ram had a solid quarter in its heavy-duty commercial fleet, with sales of the 2500/3500 models increasing by 26%. Retail sales for the Ram brand grew by 7%, thanks to strong demand for ProMaster vans and light-duty trucks, which saw double-digit growth over Q2 2024.

A Strong Hybrid Lineup Across Brands

The U.S. hybrid market is clearly evolving, and FCA is seizing the moment with top-performing models across its brands. Four of the five best-selling hybrids in the U.S. are FCA vehicles, according to S&P Global Mobility data.

Alongside the Wrangler 4xe and Grand Cherokee 4xe, the Dodge Hornet R/T secured the fifth spot, with a 109% year-over-year surge in sales, while the Chrysler Pacifica Hybrid grabbed fourth place.

Electric Future and Beyond

Looking forward, FCA is positioning itself for further growth. The FIAT brand, after launching the all-new electric 500e, saw a jaw-dropping 118% year-over-year sales increase, a sign that its move toward electrification is paying off.

Dodge is also gearing up to deliver its first fully electric muscle car, the 2024 Dodge Charger Daytona.

While a 20% drop in sales might be concerning at first glance, FCA’s strategic focus on hybrid and electric vehicles, combined with steady market share growth and inventory management, sets a strong foundation for future success.

The next quarter, with new 2025 models and continued incentives, will be key to determining whether the company can ride this wave of transformation into a more stable sales environment.

Conclusion

FCA’s third-quarter performance in 2024 reflects both the challenges of a competitive market and the opportunities presented by a growing hybrid and electric portfolio.

Despite a year-over-year decline in total sales, FCA’s ability to adjust its strategy and focus on new energy vehicles while managing inventory levels could set the stage for a promising future.