An updated version of the Stratus was introduced for 2001, with the Cirrus being renamed as the Chrysler Sebring, and a coupé model was also added to the range.

The Stratus directly replaced the high-volume Spirit and Dynasty (United States only) to favorable reviews, but lower sales.

The Stratus was often compared to other small mid-sizes such as the Chevrolet Malibu, and judged roomier than the 1995 Ford Contour by many magazines such as Consumer Reports.

The exteriors of these three cars were very similar, with the front fascia, rear bumper, taillights, and wheels being the main differences.

The fascias of each JA car resembled each brand's minivan offering, sharing headlights and grill designs.

A turbocharged version of the Stratus was sold in Mexico, with the 2.4 L DOHC four-cylinder engine and a four-speed automatic transmission with Autostick.

In Argentina, it was marketed as the Chrysler Stratus, and it was raced in the category "Superturismo Sudamericano" (Copa de las Naciones), driven by Ernesto Bessone and Pablo Peon.

The Stratus and Sebring sedans for the second generation used a revised version of the Chrysler JA platform named JR.

During this time, sales declined as its ratings by consumer and auto magazines fell among competing mid-size cars.

This model along with the Chrysler Sebring coupé were built at the former Diamond Star Motors plant by Mitsubishi, using the ST-22 platform.

The second generation Stratus and its twin, the Chrysler Sebring, received an overall "Acceptable" rating in the IIHS frontal test due to a possible injury to the right leg.

The license and production facilities for the second generation Dodge Stratus and Chrysler Sebring sedans were sold in April 2006 to Russian billionaire Oleg Deripaska, owner of the GAZ company in Nizhny Novgorod, which builds the Volga automobile.