The American automotive landscape faces an unprecedented crisis as eight major car brands confront potential extinction. Mitsubishi, Infiniti, Dodge, Chrysler, Fiat, Genesis, Jaguar, and Alfa Romeo are experiencing catastrophic sales declines, with some brands seeing nearly 50% drops in six months.
Industry-wide layoffs are affecting thousands from GM to Stellantis, while dealer networks consolidate desperately to survive mounting financial pressures.
The Crisis Deepens
“When a brand is circling the drain, resale values tank, parts dry up, and service becomes a nightmare,” warns automotive analyst Sam Fiorani. Eight once-proud car brands are now fighting for survival in America’s competitive market.
Mitsubishi dealers reportedly lose $80,000 each month, while Chrysler’s annual sales have plummeted from 500,000 to just 145,000. Layoffs have already begun across the industry.
Perfect Storm Hits Industry
The 2025 automotive landscape bears little resemblance to prior stable markets. Tariffs imposed in April 2025 have created significant industry costs, coupled with persistently high interest rates.
As consumer demand weakens, automakers like GM and Stellantis are announcing substantial workforce reductions. These economic pressures are fundamentally reshaping the entire automotive sector.
Giants Stumble, Others Fall
Stellantis has withdrawn its 2025 guidance after North American sales significantly dropped. Even industry leaders face inventory pressures and affordability concerns, intensifying the crisis.
When major players struggle, niche brands find themselves facing existential threats. Industry analysts warn that this crisis marks unprecedented challenges for smaller automotive brands.
Eight Brands Face Extinction
Mitsubishi, Infiniti, Dodge, Chrysler, Fiat, Genesis, Jaguar, and Alfa Romeo are now on the brink. Once-established names, these brands are now grappling with unique challenges.
Each brand is confronting dealer defections and product lineup gaps. Frustrated dealers insist that major decisions must be made immediately to ensure survival.
#1 – Mitsubishi
Mitsubishi operates only 330 dealers in the U.S., selling an average of 17 cars monthly—not nearly enough for profitability. This is well below the 30 units needed at each location.
Dealer profits have plunged to $434,199 per site in 2024. Four of 15 Midwest dealers closed within a single year, with some turning to used car sales for sustenance.
#2 – Infiniti
Infiniti’s peak sales hit 153,415 vehicles in 2017, but by 2024, those numbers collapsed to just 58,070, a staggering 62% decrease. The luxury brand is now consolidating dealerships within Nissan showrooms.
By year-end 2025, Infiniti plans to discontinue both the QX50 and QX55 models, leading to an even narrower lineup for American consumers.
#3 – Dodge
Dodge has discontinued its beloved gasoline-powered Charger and Challenger muscle cars to prioritize electric models. This shift has resulted in a staggering 49% sales decline in the first half of 2025.
The new electric Charger Daytona managed only 4,299 sales, far from enough to compensate for the loss of internal combustion engine models.
#4 – Chrysler
Chrysler, previously selling over 500,000 vehicles annually in 2005, managed just 145,000 sales in 2024—a catastrophic 71% drop. The brand is now limited to selling only the Pacifica minivan.
Dealers are defaulting on loans and closing amidst financial strain. The canceled Airflow EV concept represented their last hope for market relevance.
#5 – Fiat
Fiat’s American reentry has proven costly for Stellantis. The brand has struggled to gain traction against established competitors, failing to live up to its European styling promises.
Stellantis executives are now considering “trimming the fat” from their 14-brand portfolio, with Fiat frequently cited as a potential casualty.
#6 – Genesis
Genesis is grappling for recognition against well-established German luxury rivals despite some recent growth. The brand remains vulnerable to a 25% tariff on Korean imports.
Instead of passing these costs to consumers, Genesis is absorbing them internally, a strategy that appears unsustainable in the long term.
#7 – Jaguar
Jaguar has essentially taken 2025 off while transitioning to electric-only production. This signals desperation rather than sound strategic planning as the brand sold only 13,210 vehicles in the U.S. last year.
Experts caution that the move to electrification is progressing slower than intended, making Jaguar’s all-or-nothing EV strategy increasingly risky.
#8 – Alfa Romeo
Alfa Romeo’s U.S. sales have plummeted from nearly 24,000 units in 2018 to just 8,865 in 2024. The brand’s decision to cancel high-performance Quadrifoglio versions has added to its troubles.
In Q2 2025, sales dropped 51% year over year, indicating a clear downward trajectory for the brand’s future.
Financial Constraints Strangle Growth
Financial limitations are stifling necessary investments across these struggling brands. Stellantis recently halted development on the Chrysler Airflow due to “high development costs.”
With parent companies like Nissan reporting a record $4.5 billion loss in fiscal 2024, the repercussions are felt acutely in their subsidiary brands.
Layoff Avalanche Accelerates
Industry layoffs have surged beyond typical seasonal adjustments. Stellantis temporarily laid off workers due to tariff impacts, while GM also cut positions sharply.
Nissan has announced 11,000 global job cuts alongside seven factory closures, contributing to an overall total of 20,000 layoffs—about 15% of their workforce.
Manufacturing Cuts Multiply
Rapid plant closures and dealer network consolidations have become rampant. Stellantis stopped production at Canadian and Mexican plants while offering voluntary buyouts to employees.
Mitsubishi dealers are abandoning franchises, with multiple closures occurring in specific regions, affecting the overall manufacturing capacity and supply chain.
Expert Warnings Intensify
Industry analysts are becoming increasingly pessimistic about the survival prospects for these brands. Sam Fiorani of AutoForecast Solutions notes that electric vehicle adoption isn’t increasing quickly enough to support them.
He warns, “For the rest of this decade and well into the next, these brands will need gas-fueled models.”
Broader Industry Challenges
The struggles of these brands highlight broader issues facing the entire automotive sector. U.S. auto sales saw a 5.6% decline in June 2025.
As tariff-driven price increases take effect, Japanese and European import-heavy brands are also showing significant downward trends in sales.
Consumer Preferences Shift
American buyers are increasingly drawn to established brands like Toyota, Tesla, and Subaru, leaving little room for the struggling marques.
Economic uncertainties and high borrowing costs are making consumers more conservative in their choices, with EV adoption not meeting expectations while traditional internal combustion engine demand remains robust.
Grim Future Looms
If the current trends persist, several of these brands may exit the U.S. market altogether within five years. Stellantis leadership is currently reviewing all 14 of its brands.
Mitsubishi dealers have warned they are just months away from making “major decisions” about their franchise viability. Without intervention, these brands risk becoming permanent casualties.
Adapt or Disappear
The eight brands face a stark choice: adapt or cease to exist. For automotive survival, compelling products, financial stability, and consumer relevance are essential.
As expert Fiorani concludes, “These brands will need significant changes.” Time is running out for struggling manufacturers to find their footing.