

Dodge can be that brand, with still viable equity and fond associations for many Americans.Īt the press conference, Tavares floated the idea of introducing "sister cars" to PSA models as a cost-saving measure. What happens if the SUV-and-pickup party is deflated by regulations or a renewed interest in cars? Toyota, Hyundai, and Honda have wisely hedged their bets by continuing to offer vehicles in all sizes and shapes, including enthusiast models. In 2019, FCA achieved the worst corporate average fuel economy of any automaker, and President Biden is determined to restore stricter efficiency standards that President Trump kneecapped. Stellantis needs a healthy car-and-crossover brand in the U.S.

On top of that, Dodge sold some 77,000 Chargers, 58,000 Durangos, 40,000 Journeys, and 39,000 Caravans.Ī skeptic might say it doesn't cost Stellantis much to keep Chrysler or other hangers-on. Last year Alfa Romeo sold about 18,500 Giulias and Stelvios here, while Dodge found almost three times as many buyers for its profitable Challenger-and that includes the high-priced Hellcat versions, whose cultural reach and halo impact are immeasurable. The Dodge Dart, an ostensible bomb, was finding more than 85,000 buyers at its peak, 20 times Fiat's U.S.

sales plummeted to just 4304 units last year, from a high of 46,999 in 2012. Then use the money currently being thrown down the Fiat-Alfa-Chrysler well to revive Dodge, the brand worth saving as a third stabilizing leg alongside Jeep and Ram.Īs much as enthusiasts love their Giulias and 500 Abarths, the Italian invasion led by the late Sergio Marchionne has proved a folly. Mercy-kill the 300 and rebadge the Pacifica as a Dodge or even a Ram no customer will care. On Chrysler, at a press conference in February, Tavares said that he is "eager to give this brand a future" and suggested that Stellantis is looking for ways to reinvigorate Chrysler rather than cut it.īut shuttering Chrysler could eliminate a needless distraction, ideally as Stellantis trims its own redundant Euro brands. Forget that Tavares had voiced hopes for their revival he's apparently already abandoned long-held dreams of selling Peugeots and Citroëns here, with a source telling Reuters, "That plan is dead."

If Manley has the clout, and Tavares's ear, he might start by killing some sacrificial lambs: Cut Alfa and Fiat from the U.S. Switching to our reliably self-interested American view: How will Manley make sure we get our fair share of development dollars, investment, models, and jobs? He needn't worry much about Ram, whose profits make it worth a half-dozen Stellantis brand laggards, or Jeep, FCA's crown jewel. Analysts believe Fiat's plant in Kragujevac, Serbia, and the Vauxhall and Opel plant in Ellesmere Port, U.K., are especially vulnerable because they're not on Stellantis's de facto home turf in France, Italy, or the U.S. No executive, union, or government wants its division or nation to bear the brunt of any downsizing. Pressure will come from all corners of the globe. FCA's John Elkann, scion of the Fiat-founding Agnelli family, has become the chairman of Stellantis, and former FCA CEO Mike Manley is heading up North American operations. Tavares holds the tiebreaking vote on the 11-member board, giving PSA the advantage. It's reminiscent of the failed DaimlerChrysler marriage, but with more mouths to feed and potential power struggles. Tavares is walking on eggshells right now, but he almost certainly knows what happens when a single company is forced to support a large, potentially squabbling multinational family, all jostling for table space.
