Stellantis dealers are openly voicing dissatisfaction with the previous management under Carlos Tavares, accusing him of steering the company towards a “boring transportation” model through excessive cost-cutting. The shift in sentiment is striking, with dealers now expressing confidence in the new leadership of Antonio Filosa, who is seen as restoring a focus on excitement and brand identity.
Tavares’ Legacy: A Focus on Cost-Cutting
According to Sean Hogan, chairman of the U.S. Stellantis National Dealer Council (NDC), Tavares’ tenure prioritized financial efficiency over brand appeal. Dealers claim this approach risked undermining the core strengths of Jeep, Ram, Dodge, and Chrysler by stripping away elements that made them unique.
“Tavares tried to take our brands into what was going to be a boring transportation company. That’s not us… He cut and he cut and he cut.”
This criticism highlights a fundamental tension within Stellantis: balancing financial performance with the need to maintain distinct brand identities in a competitive market. The issue matters because automotive brands thrive on emotional connection; stripping away excitement risks alienating loyal customers.
Filosa’s Revival: Investment and New Models
The arrival of Antonio Filosa has reportedly sparked a turnaround. The NDC praises Filosa for reinstating key features, such as the Hemi engine, and committing $13 billion in U.S. investments by the end of the decade.
Upcoming models, including a next-generation Dodge Durango and a new Ram SUV, are generating excitement. Hogan describes the Ram SUV as “powerful and sexy looking,” emphasizing its distinctive design and alignment with the brand’s DNA. The reopening of the Belvidere plant to build Jeep Compass and Cherokee models for 2027 further solidifies this positive shift.
Streamlining the Portfolio: Assessing Brand Viability
Despite the optimism, Filosa is also conducting a rigorous evaluation of Stellantis’ 14 brands. Reports suggest that some European brands may face discontinuation due to overlap and financial underperformance. This move, while potentially painful, reflects a broader industry trend of consolidation, where automakers streamline portfolios to improve efficiency and reduce cannibalization.
The challenge for Filosa is to decide which brands can thrive in the long term. Maintaining too many overlapping brands risks diluting resources and confusing consumers. Volkswagen Group, despite its size, has a more streamlined brand structure, suggesting that Stellantis may need to make difficult choices.
A More Optimistic Outlook
U.S. dealers now express greater confidence in Stellantis than at any point since the 2021 merger. Despite a 3% sales decline in the U.S. last year, the influx of investment and the promise of new models are fueling optimism. The return of the TRX, plans for a new Dakota truck, and the upcoming Ram SUV launch are all seen as positive indicators.
The key takeaway is that Stellantis appears to have course-corrected under Filosa. The company now seems better aligned with the desires of its U.S. customers, prioritizing brand identity and excitement over strict cost-cutting. This shift in strategy could be critical for long-term success in the highly competitive automotive market.
