Since the merger of Fiat Chrysler Automobiles (FCA) and Peugeot S.A. to form Stellantis, dealers have been facing challenges with stale inventory and unclear direction from leadership. Dealers have expressed valid concerns about overlapping vehicle lineups and the discontinuation of popular models like the Dodge Charger and Challenger, as well as the Jeep Cherokee and Renegade.
The departure of CEO Carlos Tavares, along with the retirement of long-time executives Tim Kuniskis and Jim Morrison, has left many feeling uncertain. The U.S. arm of Stellantis has seen declining year-over-year sales, with a significant drop of 21 percent in the first half of 2024. The closure of the Arizona proving grounds and the layoff of 1,100 employees in Michigan have added to the turmoil within the company.
In response to dealer unrest and declining sales, Stellantis has made significant changes at the executive level. COO Carlos Zarlenga and CFO Natalie Knight have been replaced, with Jeep CEO Antonio Filosa taking on the role of COO. The Stellantis National Dealer Council has expressed newfound optimism following these changes, particularly in light of upcoming product launches like the all-electric Jeep Wagoneer S and Dodge Charger Daytona.
While the executive shake-up is a positive step, there are still challenges ahead for Stellantis. CEO Carlos Tavares has indicated that a reevaluation of the 14 Stellantis brands will take place in the next two to three years. However, some dealers feel that this timeline is too long given the current state of the product portfolio.
Moving forward, dealers are hopeful that the changes in leadership will lead to a brighter future for Stellantis. The willingness of both dealer groups and company executives to work together bodes well for the company’s potential turnaround. With a renewed focus on product innovation and customer satisfaction, Stellantis is poised to regain its competitive edge in the automotive market.