In the wake of a staggering 21% drop in U.S. sales during the second quarter, Stellantis finds itself at a crossroads. Dave Kelleher, President of David Auto Group, joins us today on Inside Automotive to shed light on the challenges facing the brand and its dealers. With over 30 years in the industry, Kelleher shares an insider’s perspective on what has gone wrong and what the future holds for Stellantis and its dealer network.
Key Takeaways
1. Stellantis has seen a sharp drop in its U.S. market share, plummeting from 12% to 6%. Dealers are struggling as vehicle models are being discontinued without timely replacements, leaving gaps in the product lineup, especially in key segments like midsize SUVs.
2. Dealers are increasingly dissatisfied with Stellantis’ leadership. Many feel disconnected from the company’s executives, with little communication or action from leadership figures like Carlos Tavares, CEO of Stellantis, and other key players.
3. As Stellantis dealers face reduced inventory and product offerings, transaction volumes have significantly declined. Kelleher highlights how his dealership went from selling 185 new cars a month to only 100, severely affecting their revenue and workforce.
4. While Stellantis pushes for a transition to electric vehicles, many dealers, including Kelleher, believe the U.S. market is not yet ready. The shift is seen as too aggressive, with customers reluctant to embrace EVs due to infrastructure limitations and other concerns.
5. Overall, Kelleher emphasizes that Stellantis dealers no longer feel like partners with the manufacturer. According to the latest NADA report, the once-strong relationship between dealers and the brand has weakened, with dealer satisfaction hitting record lows.
"The replacement for the Jeep Cherokee hasn't been released for two years, and they've decided to discontinue the previous model, leaving us without representation in the most popular vehicle segment in the United States." – Dave Kelleher
