Stellantis Faces Dealer Trust Crisis in the U.S.

Stellantis is facing a severe trust deficit with its U.S. dealers. According to a recent survey by Kerrigan Advisors, a staggering 72% of Chrysler, Dodge, Jeep®, and Ram (CDJR) dealers expressed “no trust” in the automaker—a record-high figure for the survey.

The results highlight a rocky relationship between Stellantis and its dealer network, which has strained cost-cutting measures, pricing strategies, and product decisions. The survey, conducted anonymously with over 635 U.S. dealers between June and November, paints a stark picture of frustration and mistrust.

Leadership and Profit Tensions – 

The report follows significant leadership changes within Stellantis, including the departure of former CEO Carlos Tavares. Dealers had long criticized Tavares for prioritizing short-term cost savings at the expense of the U.S. market. Over the summer, a collective open letter from CDJR dealers accused him of “reckless decision-making” and highlighted the impact on dealer profitability and customer trust.

Doug Ostermann, Stellantis’ CFO, acknowledged the challenge, emphasizing that rebuilding trust with dealers is a top priority under the new leadership. Kevin Farrish, a prominent Virginia-based dealer and head of the Stellantis dealer council, expressed cautious optimism, noting that recent swift changes could indicate a genuine commitment to mending relationships.

A Unique Divide – 

While other automakers have faced dealer pushback in recent years—Ford, for instance, struggled with EV strategy disagreements in 2023—the scale of Stellantis’s trust deficit is unprecedented. In comparison, only 46% of dealers reported “no trust” in Ford during the same survey period.

The source of dealer discontent seems to lie in Stellantis’ approach to profitability. Dealers accuse the automaker of attempting to capture a larger share of pandemic-era profit margins by raising vehicle prices and implementing cost-cutting strategies. While these measures may have made sense for global operations, they left U.S. dealers feeling sidelined and undervalued.

Franchise Value Concerns – 

Beyond trust issues, more than 64% of dealers in the survey said they expect their franchise values to decline in the next 12 months. This is a critical concern for dealerships, as declining franchise values can affect long-term profitability and market competitiveness.

Moving Forward – 

Stellantis faces an uphill battle as it works to repair its relationship with dealers. The automaker’s new leadership must focus on transparency, fair pricing strategies, and stronger communication with its U.S. network to regain dealer confidence.

For now, the message from Stellantis dealers is clear: trust has been broken, and it will take more than promises to rebuild it.

Source: Business Insider