Stellantis will tell you its name is a play on the Latin word stello, which means “to brighten with stars.” Well, since the 2021 merger of Fiat Chrysler Automobiles (FCA) and Peugeot S.A. (Groupe PSA), the global conglomerate has been more of a black hole at times. Dealers especially have felt that way, voicing their concerns with stale inventory and unclear direction from leadership. Now, said leadership is bound for a shakeup and there’s newfound optimism amongst retailers.
It’s worth noting that dealers’ concerns were valid. Instead of bolstering the product portfolio into one that was competitive, the massive multi-manufacturer merger highlighted a lineup chockfull of overlapping, redundant vehicles. Products without an internal rival were also left to grow long in the tooth. As such, the list of discontinued models, at least stateside, has been long, including iconic muscle cars the Dodge Charger and Challenger. Even high-profit Jeep isn’t immune with the discontinuation of the Cherokee and Renegade.
Also being retired is CEO Carlos Tavares, whose contract ends in 2026 and won’t be renewed. Tavares has been Stellantis’ head honcho since merger day, but it’s been an uneven ride. In years one, two, and three, sales were stellar. Year-over-year numbers increased, and electrified vehicles did well. Looking into the details, however, the auto group’s largest market was having its worst showing.
The U.S. arm’s year-over-year sales in 2021 were flat, dropped 13 percent in 2022, down 1 percent in 2023, and, through the first half of 2024, have fallen further by 21 percent. Additionally, long-time (and enthusiast-leaning) executives Tim Kuniskis (Dodge, Ram) and Jim Morrison (Jeep) have retired.
For obvious reasons, no one is happy.
Dealers have too much inventory they can’t sell. Corporate employees are being demanded back in the office again. Plant workers are striking against shutdowns, yet 1,100 Michiganders are still being laid off, and the Arizona proving grounds are closing. Plus, there might be a corporate garage sale with Chrysler, Maserati, and the whole shebang headquarters put on the table.
But dealers are the important piece for any kind of turnaround, and Tavares is no lame-duck exec. Last month, an open letter from the Stellantis National Dealer Council requested a change of scenery.
“Our dealer body is interested in selling more product, taking exceptional care of our customers in a profitable manner and want [Stellantis] to care as much or more about the same things,” said Kevin Farrish, dealer council chairman, to Automotive News. “If the change in COO and CFO makes that happen, [they] will prove to be good moves.”
The dealer unrest and sagging sales were enough for Tavares to do just that. COO Carlos Zarlenga was removed after just eight months in that position. CFO Natalie Knight is also leaving after 15 months on the job. Jeep CEO Antonio Filosa has been appointed as the new Stellantis COO, managing both roles concurrently. The Stellantis dealer council is nevertheless finally feeling positive about things.
“I haven’t been this optimistic leaving a meeting in two and a half years,” Farrish said following a council meeting earlier this week where Filosa and other Stellantis executives were present. He added, “But 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.” Farrish is also encouraged by the new products, particularly the all-electric Jeep Wagoneer S and Dodge Charger Daytona.
Executive musical chairs aren’t the only thing on Tavares’ mind. He recently said that the 14 Stellantis brands will receive their comeuppance in two to three years. But given how the portfolio is doing now, for some, two years feels too long a wait.