Kerrigan Advisors survey: 72 percent of CDJRs express “no confidence” in Stellantis
New survey revealing US dealers’ low trust in Stellantis
A new survey by Kerrigan Advisors reveals a serious trust problem between Stellantis and its U.S. dealers. The results of this latest survey was conducted among a representative sample of 635 U.S. dealers between the months of June and November.
The source comes from Business Insider. The anonymity granted to participants allowed them to collect authentic testimonies, revealing a deep sense of frustration and distrust that permeates the entire industry. These negative emotions, if not properly addressed, risk compromising the quality of service offered to customers and triggering a vicious cycle of dissatisfaction. The result, unfortunately, was clearly negative. In fact, 72 percent of CDJR dealers expressed total skepticism about the company, scoring it negative.
The challenges faced by U.S. dealers are not limited to trust issues. Beyond that, as many as 64 percent of respondents expressed deep concerns about the future value of their franchises, predicting a decline in the next twelve months. This outlook severely affects the economic stability of dealerships, as a depreciation of franchises can significantly undermine long-term profitability and the ability to invest in innovation and growth, thus making it more difficult to compete in an increasingly dynamic market.
Stellantis dealers protest battle over profitability
Tensions between Stellantis and its U.S. dealer network are reaching alarming levels. Underlying the growing discontent appears to be a deep divergence of views on its approach to profitability. Dealers, in fact, accuse the automaker of taking a series of measures, including vehicle price increases and cost cuts, that have the stated goal of boosting profit margins but have in fact marginalized their position within the company.
While Stellantis justifies these strategic choices as necessary to meet the challenges of a rapidly changing automotive market, U.S. dealers complain that they are being sacrificed on the altar of global profitability. This perception of being sidelined and undervalued has generated a deep sense of distrust of the company.
Making the gravity of the situation even more apparent is a comparison with other automakers. While it is true that other manufacturers have also faced dealer resistance in recent years (think of the tensions between Ford and its network over electrification strategy), the extent of the trust deficit with Stellantis appears unprecedented. The data from the survey speak for themselves: while only 46 percent of dealers said they “do not trust” Ford, the percentage soars for Stellantis, indicating a much more widespread and entrenched level of distrust.
goal restores U.S. dealer trust for new Stellantis leadership
Stellantis’ new leadership now faces a complex challenge: rebuilding trust with a deeply disappointed dealer network. CFO Doug Ostermann recognized the urgency of the situation, stressing the importance of restoring trust with dealers. Kevin Farrish, an influential dealer and head of the Stellantis Dealer Council, expressed cautious optimism, interpreting the rapid changes taking place as a sign of a genuine commitment to repair relationships.
It remains to be seen whether the new top management of Stellantis will be able to re-establish a climate of cooperation with dealers. The road is still long and full of unknowns. The ability to listen to the needs of the sales network, to take concrete measures to protect dealer profitability, and to redefine a fairer and more transparent partnership model will be crucial to Stellantis’ future in the United States.