More tension is rising over Stellantis, which as we know was already going through a rather turbulent period with its American brands Ram, Dodge, Jeep and Chrysler. Now, in fact, comes pressure from the man who will be Ohio’s U.S. Senator-elect Bernie Moreno and ally of President Trump. Indeed, he has highlighted the topic of America’s historic brands (Jeep, Chrysler, Dodge, and Ram) arguing that they should return under direct U.S. management so that they can receive the attention and vision to the future that they require.
Moreno criticizes European market trend
The fact that several automotive brands that are part of the Stellantis group are highly dependent on the influence of predominantly European interests is, according to Moreno, making the company’s current difficulties increasingly serious. In the past, a unified, shared strategy between European and U.S. automakers has proven effective. Nevertheless, in today’s economic and automotive market environment, this generalized approach seems unable to guarantee the same results achieved years back.
As anticipated, tensions within Stellantis emerged mainly with Bernie Moreno‘s statements. The senator has criticized the management of America’s historic brands by the new Stellantis formed by the merger of FCA and PSA. In fact, Bernie Moreno, during an interview with the Financial Post, expressed great disappointment to the public about Stellantis’ management of American brands, calling them ‘bad custodians’.
Moreno appeals directly to Elkann
Moreno made an appeal directly to the one who currently leads Stellantis, namely John Elkann, who is also a member of the Agnelli dynasty. The senator is calling for consideration of splitting off Chrysler Corporation and returning the brand to American ownership. This move, according to Moreno, would be solely in the interest of both American consumers and the company itself. Bernie also stated his hope that Elkann will do the right thing and decide to spin off the Chrysler Corporation, bringing it back under American ownership.
The recent departure of Carlos Tavares, former CEO of Stellantis, has further destabilized the company. In this context, we have already spoken elsewhere about Ram’s decision to recall Tim Kuniskis, a very important figure in the industry, which could still represent an attempt to restore consumer and investor confidence. Decisions made by the former CEO, such as massive staff cuts, have drawn much criticism. One key figure, Moreno, expressed strong doubts about the company’s strategies, accusing Tavares of putting the company and jobs at risk, especially in the United States.
Moreno therefore decided to propose drastic solutions to bring production back home, such as eliminating subsidies for electric cars and imposing higher tariffs on imports. These measures take strong inspiration from Trump’s protectionist policies, which should try to protect the U.S. auto industry. Opinions on the future of Stellantis are currently quite divergent. On the one hand, there are those who fear that the company may make the decision to relocate production to Europe and import cars to the United States, with the aim of reducing costs. On the other hand, the Agnelli family, the main shareholder, has pledged its commitment to support the company and local communities.