What Stellantis Must Do to Thrive, or Even Survive

It’s difficult to read anything particularly positive about the abrupt on-a-Sunday departure of Stellantis CEO Carlos Tavares—it’s clear that he was not a beloved, team-building figure, and few begged him to stay. A statement issued by Shawn Fain, president of the United Auto Workers, said this: “For weeks, thousands of UAW members at Stellantis have been calling for the company to fire Carlos Tavares due to his reckless mismanagement of the company.”

In a sense, Fain got his wish. But it’s unfair to put all the blame for Stellantis’ downright miserable 2024 on Tavares. His resignation could rally the troops, at least briefly, but sustaining any momentum is entirely dependent on who is chosen to replace him, and that may not happen for months. The new CEO must be tough, but he or she must also be a bridge-builder, able to implement a turnaround quickly, backed by some effective and convincing public relations. I’d name names if I could think of any: Roger Penske and Bob Lutz are too old and wouldn’t want the job anyway. Ford CEO Jim Farley? He’d be a provocative choice.

As usual, though, it boils down to product and price. What does Stellantis—for us, that means Chrysler, Dodge, Ram, Jeep, Maserati, Fiat and Alfa Romeo—have in the pipeline that will instill confidence in the dealer network, and generate a positive buzz among customers? The new Dodge Charger is punching above its weight in terms of favorable media coverage, but it’s just one model. The battery-electric Ram 1500 Ramcharger is impressive, but the truck is wading into an uncertain market. There’s a Dodge Dakota replacement finally coming, which is good news for dealers, at least.

Those of us who have been covering the automotive business for a while have seen Chrysler—after nearly four years, “Stellantis” still doesn’t roll off the tongue—go down for the count several times, sometimes saved by pulling a rabbit out of its hat. The Chrysler (and Dodge and Plymouth) minivans, introduced for 1984, left the competition absolutely flatfooted. The 1994 Dodge Ram pickup, the first with the “big rig” look in front, was a massive success. The Chrysler PT Cruiser, introduced for 2001, was a huge hit.

What do the above-mentioned successful products have in common? One thing: Each represented outside-the-box thinking, backed by the willingness to take chances. Well before the 1994 Dodge Ram debuted, Bob Lutz, then the head of Chrysler’s product development, showed the design to a small group of automotive journalists. The then-current Dodge Ram had been allowed to atrophy, while Ford and General Motors managed to keep their full-sized trucks reasonably fresh. With the radical 1994 Ram, “We have nothing to lose,” Lutz said then. The 1993 Dodge Ram sold 95,542 copies; the fresh-thinking 1994 model sold 232,092.

The Chrysler minivans, the 1994 Ram, the 2001 PT Cruiser were all justifiably regarded as the “next big thing.” Think about it: When was the last “next big thing?” The 2004 Toyota Prius, maybe? The resurgence of the pony cars, with the Ford Mustang, Chevrolet Camaro and Dodge Challenger? Stellantis needs to look deep into the ideas that have been presented by its employees and see if there’s something worth taking a chance on, something so different it could change the market landscape. Easier said than done, but the company has done it before. If there’s a time to take a few chances on the next big thing, it’s now.

Stellantis corporate seems surprised by the fact that the return of Fiat and Alfa have not invigorated Americans, and Chrysler is hanging on with a minivan, and some leftover 2023 Chrysler 300s, which is still using the (admittedly innovative) design of the 2005 model. What is the new CEO going to do with that information? Remember this statement, issued last August? “Stellantis acknowledges the interest in its North American brands and reaffirms the Company’s commitment to its entire portfolio of 14 powerful, iconic brands, which were each given a 10-year timeframe to build a profitable and sustainable business. Like the Jeep and Ram brands, Chrysler and Dodge are at the forefront of Stellantis’ transformation to clean mobility, benefitting from the Group’s cutting-edge technology and scale. The Company is not pursuing splitting off any of its brands.” Huh.

Finally, there’s the matter of electricity. America has spoken: We are not yet ready to give up on gasoline. My press car this week is electric, and it needed charging last night. I live in the boondocks, and the only charging station reasonably nearby was, and this isn’t a surprise, having problems. The lone charger I could get to take my credit card pumped out electricity at 50kw, when I had hoped to use the 350kw charger. Meaning I sat there for a long time to get less of a charge than I wanted. I was not happy.

I saw electric cars come and go. A Lucid, a Hyundai towing a U-Haul, a couple of Chevrolets, a Volkswagen, two Ford Mustang Mach E’s. Nothing from Stellantis, which admittedly has been well behind the electric curve. Is that a good thing or a bad thing? Will electric vehicles come into their own? When? Five years? Ten? Longer? The lack of enthusiasm for electrics has caught most every manufacturer with their collective pants down, requiring a hasty recalibration of current and future products, a prime example being the timeframe for the twin-turbo Hurricane six-cylinder gasoline engine being moved up to fill in for questionable demand for the electric-only 2025 Charger. Stellantis has to guess right about how deep they want to dive into the electric market in the U.S. I don’t envy the people who have to make that decision.

Bottom line: To thrive, or possibly even survive as we know it, Stellantis must find a CEO who can energize the troops, make peace with suppliers, is forward-thinking enough to green-light an innovative product lineup, and can communicate a positive message.

Sounds simple. It isn’t. But the company’s future, if there is to be one, may hang on it.