Stellantis Dealers Optimistic About Future After Meeting with New COO

In a recent turn of events, Stellantis’ dealer network is showing renewed optimism about the automaker’s electric vehicle (EV) strategy following a pivotal meeting with Antonio Filosa, the company’s newly appointed North America Chief Operating Officer (COO). The meeting, held on October 15, 2024, brought a fresh sense of optimism for the dealers, many of whom had been vocal about their concerns over Stellantis’ direction in recent months.

Just weeks earlier, Stellantis faced a wave of criticism from its dealer council, with chair Kevin Farrish leading a public letter condemning CEO Carlos Tavares’ management. But after the October 15 meeting, Farrish left feeling encouraged about the future, particularly the potential of upcoming EV models like the Jeep® Wagoneer S (KX) and the Dodge Charger Daytona (LB29).

“I haven’t been this optimistic leaving a meeting in two and a half years,” Farrish told Automotive News. “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.”

A Challenging Quarter and Leadership Changes – 

The meeting came on the heels of a tough quarter for Stellantis. The automaker’s third-quarter report revealed a 20% decline in global vehicle shipments, with North American shipments dropping by 36%, largely due to production cuts aimed at addressing high dealer inventories. CEO Carlos Tavares announced that Stellantis aims to reduce its U.S. inventory to 330,000 vehicles by the end of the year, down from more than 430,000 vehicles at midyear. The inventory adjustments come alongside the company’s effort to rebound from a weaker-than-expected financial performance, which included a downward revision of its profit forecast for the year.

In response to these challenges, Tavares made significant changes to his executive team. He replaced North America COO Carlos Zarlenga with Antonio Filosa, the current Jeep CEO after Zarlenga’s tenure saw a continuous decline in U.S. sales. Natalie Knight, Stellantis’ CFO, was also replaced. The leadership shake-up came as Tavares signaled his intention to retire in a little over a year, prompting a search for his successor.

New Leadership, New Approach – 

Farrish, who owns Farrish Chrysler, Dodge Jeep®, and Ram (CDJR) in Fairfax, Virginia, described the October 15 meeting as a collaborative effort between Stellantis executives and dealers. He appreciated company leadership’s transparency and open dialogue, which he felt was critical for rebuilding trust.

“Hearing from your network which is on the ground, front line, and soliciting their thoughts on it so that you can make an informed decision is what I’m used to out of this corporation,” Farrish shared. “It was so gratifying to see it back.”

The in-person discussions were complemented by weekly calls between Stellantis’ U.S. retail team and the dealer council. These calls began in September and aimed to improve communication and ensure both sides stay aligned during the transition.

Stellantis’ Head of U.S. Retail Sales, Matt Thompson, echoed this sentiment, describing the October meeting as productive. “We continue to work together to ensure our collective success, which starts and ends with delivering head-turning products that meet the demand of our customers,” Thompson said in a statement.

EVs Bring Hope for a Turnaround –

For many dealers, the highlight of the meeting was getting a firsthand experience of Stellantis’ upcoming EV models, including the luxurious Wagoneer S and the high-performance Dodge Charger Daytona. Farrish noted that the Daytona’s synthetic exhaust sound evoked memories of the gasoline-powered Chargers and Challengers Dodge discontinued last year.

The vehicle’s performance, however, left a lasting impression. “The brand’s first EV is the fastest car I’ve ever driven,” Farrish said, highlighting the potential for the Charger Daytona to attract performance enthusiasts in the EV market. Meanwhile, the sleek design of the Wagoneer S also stood out as a key selling point for dealers.

Houston-based dealer Steven Wolf, owner of Helfman CDJR, admitted that he might have initially underestimated the appeal of both EVs. But after experiencing them, he is confident that once customers test-drive these models, they will be inclined to make a purchase. “If dealerships can get people to test-drive them, they’ll sell,” Wolf said, noting that he is hopeful for the future under Filosa’s leadership.

Challenges Remain, but Dealers Are Hopeful – 

Despite the optimism, Stellantis’ path forward remains challenging. The automaker’s decision to adjust its inventory strategy was prompted by a poor Q2 2024 marketing plan, which Tavares acknowledged had contributed to an excess of unsold vehicles at dealerships. As part of the recovery effort, Stellantis rolled out new incentive programs in August, which will continue through the end of the year to help move inventory.

The company’s plan to evaluate the performance of its 14 brands in the next two to three years also looms as a significant decision point. Tavares mentioned that underperforming brands could be at risk, adding pressure to ensure that every new model—especially EVs like the Wagoneer S and Charger Daytona—meets market expectations.

Dealers like Farrish believe that a strong partnership with Stellantis leadership will be crucial in navigating this transition period. “It’s going to take a lot of work,” Farrish reiterated, “but if we all commit to it, I think we can make this work.”

With renewed communication, new leadership, and promising products, Stellantis and its dealer network are working to turn the tide and strengthen its position in the competitive automotive market.

Source: Automotive News