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Commentary

Chrysler and Dodge face mortal peril under Stellantis. It’s time for a change

By
Frank B. Rhodes Jr.
Frank B. Rhodes Jr.
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By
Frank B. Rhodes Jr.
Frank B. Rhodes Jr.
Down Arrow Button Icon
October 7, 2024, 11:48 AM ET

Frank B. Rhodes Jr. is the great-grandson of Walter P. Chrysler, the founder of Chrysler. He’s also a car guy.

Frank B. Rhodes Jr.
Frank B. Rhodes Jr. courtesy Frank B. Rhodes Jr.

Stellantis has let the Chrysler and Dodge brands deteriorate to the point where there might not be a return. That needs to change—and fast.

But before I get into that, a necessary disclaimer: I am the great-grandson of Walter P. Chrysler, the founder of Chrysler. My grandmother, Bernice Chrysler, told me before she passed in 1979 to do what I can to “keep the engine running.” While my career has been in furniture-making, I’ve remained deeply involved with the die-hard American fans of Chrysler, serving as the brand’s unofficial ambassador and advocate (video).

In August, I wrote a 17-page open letter calling for the Chrysler and Dodge brands to be returned to American hands, addressing it to Carlos Tavares and Christine Feuell, the CEOs of Stellantis and the Chrysler brand, respectively.

These once-proud American brands have languished under Stellantis, based in the Netherlands. I proposed creating a new entity—tentatively called The New Chrysler/Dodge LLC—to acquire the Chrysler and Dodge brands. Stellantis rejected this idea, telling the Detroit Free Press that it remains committed to each of the 14 brands in its portfolio, among them Jeep, Ram, Dodge, and Chrysler, in addition to European makes like Fiat, Opel, Peugeot, and Alfa Romeo.

The brands “were each given a 10-year timeframe to build a profitable and sustainable business,” a company spokesperson told the paper. “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.”

EV obsession, stagnant lineup

But in my opinion, Tavares doesn’t care nearly enough about Chrysler and Dodge. While enjoying an exorbitant salary criticized by investors, he’s embarked on cost-cutting to the extent that factories are in disrepair, sales are down, and dealers are in dire need of new products.

Stellantis has set Chrysler on a path to an all-electric lineup by 2028, a questionable move considering broader market trends. Other automakers are opting for hybrid electric vehicles (HEVs) to address the slowdown in growth for fully electric vehicles (EVs). Many brands recognize that the added cost, limited charging infrastructure, and inconvenience of EVs have hindered widespread adoption, leading them to focus on fast-selling hybrids as a more practical solution. Chrysler did release a plug-in hybrid EV (PHEV) version of the Pacifica minivan, but it seems steadfast in its pursuit of an all-electric future, a strategy that could spell doom for the brand.

One of the most disheartening aspects of Chrysler’s recent history is the lack of new products. The brand has not released a completely new vehicle since 2017 (the Pacifica), leaving its lineup stagnant. During this period, several promising concept vehicles, such as the Chrysler Airflow, were revealed and appeared production-ready, only to be shelved. These abandoned projects not only wasted valuable resources but also highlight the brand’s missed opportunities to stay competitive.

Dodge, for its part, is offering both electric and internal combustion engine (ICE) versions of its new products. Yet, even with this balance, the brand seems overly focused on electric vehicles—something that its core buyer base doesn’t necessarily want. Dodge’s buyers have traditionally been enthusiasts of American muscle and performance, and while electrification is part of the future, the push to transition too quickly risks alienating loyal customers.

Chrysler’s upcoming electric crossover, expected to arrive late next year, will enter a crowded segment where it will need to truly stand out to succeed. Chrysler was once known as an innovator and an engineering powerhouse, but in the past two decades, it has become a company that follows trends rather than sets them. To survive, Chrysler needs to reclaim its legacy as a brand that represents blue-collar luxury and innovation.

For Dodge, the path forward is about expanding its lineup with products that resonate with its American-centered identity. Dodge has excelled with muscle cars and performance SUVs, but the brand can do much more to reestablish its place in the market. A midsize performance sedan with a smaller, more efficient turbocharged engine, for example, would allow Dodge to offer an affordable and appealing alternative to electrification. And producing the Dodge Hornet in North America—rather than in an Italian Stellantis plant, then shipped to the U.S., as is now the case—and lowering its cost would make the compact SUV more attractive to buyers seeking their first crossover or family vehicle, further boosting Dodge’s appeal.

There is enormous potential for both Chrysler and Dodge to succeed, but it requires listening to their customer base and focusing on what made these brands iconic. Instead, Stellantis continues to push overpriced products into a high-interest-rate market, with questionable build quality stemming from its outsourcing practices. American buyers especially crave American-designed and built products, but this is something Stellantis appears to overlook. Without a course correction, Chrysler and Dodge risk losing their loyal customer base and their valuable place in the American automotive landscape.

A leader who knows cars

This is a code red situation. Stellantis needs a leader who understands the passion behind these brands—someone who can reignite the spirit of Chrysler and Dodge. Tim Kuniskis, the recently retired CEO of Dodge and Ram, would be the perfect candidate to fix these brands. However, for that to happen, Stellantis would need to give him the autonomy to run them without the constant pressure of the board’s constraints. Only then can the brands be revitalized and returned to their former glory.

Stellantis needs leadership that understands the American automotive market from a car enthusiast’s perspective—someone who can build on the legacy of Chrysler and Dodge and develop vehicles that speak to what customers here really want. A leader who knows cars, not just balance sheets, can guide these brands back to their roots, making vehicles people actually want to buy, rather than forcing them into trends they aren’t ready for.

Last month, Stellantis made a public announcement about finding a successor for Tavares. This could signal a shift in direction—and an opportunity to reinvigorate Chrysler and Dodge.

On the other hand, Tavares recently stated that any Stellantis brand that does not succeed will be cut. Chrysler employees, wondering when the ax will fall, are worried about their jobs. Executives are being offered early retirements to save money. Chrysler dealerships are in dire need of affordable products to sell.

Since I wrote the open letter, thousands of Chrysler fans have contacted me about bringing the brand back to our country. Next summer, many of them will join me in celebrating its 100th anniversary, including in Pennsylvania at a large, nostalgic Chrysler 100 event (video)—Americana at its finest. But without action, the future looks bleak.

Read more:

  • Stellantis profits halve amid massive drop in sales as carmaker reveals plans to revive old models
  • American muscle cars are losing their biggest champion as Tim Kuniskis retires from Stellantis after a 32-year run
  • Stellantis CEO Carlos Tavares’ almost 60% jump in pay to $39m slammed by investors 2 years after previous compensation plan rejected
  • Struggling auto giant Stellantis says CEO Carlos Tavares will retire in 2026 when his contract ends

The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.

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About the Author
By Frank B. Rhodes Jr.
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