Unleashing Power, Stellantis Dealers Rejoice Over Executive Shake-Up Masterstroke
Stellantis Shifts Gears: New Leadership, Fresh Air, and Hope for Dealers
In a dramatic turn of events, Stellantis, the massive automotive conglomerate formed by the 2021 merger of Fiat Chrysler Automobiles (FCA) and Peugeot S.A. (Groupe PSA), is set to undergo a significant shakeup. The company’s leadership is undergoing a major overhaul, and dealers are feeling a newfound sense of optimism.
A Galaxy of Overlap
The merger was meant to brighten the stars, but instead, it brought a galaxy of overlap, resulting in a complex product portfolio with redundant models, outdated offerings, and little direction. The list of discontinued models is long and painful, including the beloved Dodge Charger and Challenger, even high-profit Jeep models like the Cherokee and Renegade.
A Change in Moons
Stellantis CEO Carlos Tavares’ contract is set to end in 2026, and he won’t be renewed. Tavares has been at the helm since the merger’s inception, but his tenure has been marked by an uneven ride. While sales were stellar in years one to three, the company’s largest market, the United States, has seen a significant downturn. Year-over-year sales have flatlined, dropped 13% in 2022, and plummeted 1% in 2023, with a 21% decrease in the first half of 2024.
Alienating Employees and Plant Workers
Long-time executives Tim Kuniskis (Dodge, Ram) and Jim Morrison (Jeep) have retired, joining an exodus of top talent. Plant workers are striking against shutdowns, with 1,100 Michigan workers laid off, and the Arizona proving grounds closing. It’s a gloomy outlook, with rumors surfacing about a potential corporate garage sale involving Chrysler, Maserati, and even the Stellantis headquarters.
A Dealer Revival
But dealers, the backbone of the turnaround, are key to Stellantis’ success. In an open letter, the Stellantis National Dealer Council requested a change of scenery. Kevin Farrish, chairman of the dealer council, expressed the need for Stellantis to focus on dealer support, sales, and customer care. With Tavares’ departure, COO Carlos Zarlenga was replaced after just eight months, and CFO Natalie Knight left after 15 months. Jeep CEO Antonio Filosa is now the new COO, taking on both roles concurrently.
A New Dawn
The dealer council is finally feeling hopeful, citing the new products, particularly the all-electric Jeep Wagoneer S and Dodge Charger Daytona. "I haven’t been this optimistic leaving a meeting in two and a half years," Farrish remarks, acknowledging the arduous path ahead. "It’s going to come with a lot of work, both from my group, as well as from theirs, and everyone’s prepared to do it."
A Galaxy of Opportunity
As Stellantis continues its radical transformation, dealers and stakeholders alike are left wondering: what’s next? Will the 14 brands receive their comeuppance in two to three years, as Tavares recently claimed? Only time will tell, but for now, the dealer council remains optimistic about the possibilities.
