Launched into a major commercial reconquest operation, the Stellantis group is sounding the charge and adjusting its pricing strategy. The offensive promises to be intense. It responds to the fall in sales observed on both sides of the Atlantic.
In France, a number of distributors and brand agents had warned of the decline in sales given the prices charged, with customers no longer able to renew their vehicles despite LOA financing. Some business providers saw their sales volumes drop by a third last year!
Stopping the dynamic of rising prices
Remember that the average price of the Franco-Italian-American manufacturer’s models had reached nearly 40,000 euros in Europe, an amount higher than the average of other mass market competitors, according to data from Jato Dynamics relayed by Reuters. In the United States, Jeeps sold for $35,000 in 2019, exceeded $60,000 last year.
On a market scale, in six years the average price of a new vehicle has jumped by 10,000 euros, going from 26,000 euros in 2018 to nearly 36,000 euros in 2024. As a result, the new vehicle market in France continues to sink into crisis, with 1.7 million registrations last year.
A consequence of the CAFE regulations
Determined to relaunch its sales, also constrained by the new regulatory directives imposed by the CAFE indicators, the Stellantis group has rethought its commercial policy.
Jean-Philippe Imparato, the new Europe director, announced this upon his appointment in mid-October. New commercial resources will be allocated to electric vehicles to comply with CAFE regulations. This requires 25% of electric models to be sold in 2025. At a time when government aid is fading for the purchase of a BEV, manufacturers are taking over.
Peugeot cuts electric prices
-Peugeot had already repositioned itself to get the year off to a good start. The manufacturer has made significant price reductions on the e-208 and e-2008 in Style finish. The reduction reaches 6,100 euros on the e-208 Style 136 hp electric with a 50 kWh battery, reaching a price of 28,000 euros before application of the ecological bonus, or 169.1 euros including tax per month. A price that allows the small electric city car to reposition itself against the electric R5.
This price drop also concerns the 2008 electric. It reaches 3,250 euros on the 2008 Style 136 hp electric, or a final price of 32,780 euros or 179 euros including tax per month. Another example concerns the reduction of 2,250 euros applied to the 2008 Style 156 hp electric, i.e. a price of 34,740 euros or 209.1 euros including tax per month.
The change of direction is also found on the side of Opel. The electric Corsa has been slashing prices since the fall, with drops of between 3,100 euros and 4,050 euros depending on the version. The entry-level renamed Edition is now trading at 32,000 euros. And until the end of the month, the LOA is displayed at 149 euros on models in stock.
Citroën and Jeep multiply price cuts
Citroën set the tone at the last Paris Motor Show, with the restyled ë-C4 and C4 X, the electric versions of which sometimes lost more than 7,000 euros! In Plus finish, the model (equipped with a 54 kWh battery) is now offered at 35,800 euros, compared to 43,050 euros. A trend that is found on the high-end Max finish of 156 hp, billed at 38,000 euros, a drop of 7,100 euros.
At the heart of Stellantis’ new commercial policy, Jeep is not left out. The Avenger electric range thus displays discounts of between 1500 euros and 2000 euros, with the added bonus of adding additional equipment depending on the finishes. The icing on the cake is that the manufacturer adds 4,000 euros in unconditional aid (compared to 2,500 euros at the end of the year), i.e. an entry-level model at 32,500 euros in its 100% electric version. It should be noted that the price repositioning can be supplemented by the ecological bonus of between 2000 euros and 4000 euros.
If Stellantis’ return to reason is tactical, it also remains dictated by competitive pressure, starting with that of Renault and MG.
