'A terrible steward': US senator-elect calls for Jeep, Ram and Chrysler parent to sell brands

12/30/2024 05:07 PM

A United States senator-elect has become the latest person to call for global automotive conglomerate Stellantis to offload Jeep, Ram, Dodge and Chrysler.

Bernie Moreno, a former car dealer group owner elected to join the US Senate in January to represent the state of Ohio, accused Stellantis of being "a terrible steward" of its four American brands and called for them to be sold off.

In an interview with Bloomberg, Moreno said Stellantis chairperson John Elkann should 'do the right thing' by returning the brands to American ownership.

It comes a decade after the Detroit-based Chrysler Corporation was fully acquired by Italy's Fiat in 2014 to form Fiat-Chrysler Automobiles (FCA), following the American carmaker’s Chapter 11 bankruptcy in 2009.

In 2021, Fiat-Chrysler merged with Groupe PSA – the French parent of Peugeot, Citroen and Opel – to create the Stellantis group, which is responsible for 14 automotive brands.

"[Stellantis has] been a terrible steward of the brands," Moreno said. "I'm hoping that John Elkann does the right thing and spins off Chrysler Corporation [Jeep, Ram, Dodge and Chrysler] and puts its back in American ownership."

In response, Stellantis told Bloomberg its four American brands "are at the heart" of its strategy.

"With nearly 100 years of history in the US, the iconic brands of Chrysler, Dodge, Jeep and Ram are at the heart of Stellantis' strategy," the company said in a statement.

"Together with our partners and stakeholders, we will continue building Stellantis as the automotive company of the future."

In September, Frank B Rhodes Junior, the great-grandson of founder Walter P Chrysler, penned a letter as a "concerned citizen", urging Stellantis to sell the four brands.

"Chrysler's products [are] being pushed further down the priority list while slow-selling brands like Fiat, Alfa Romeo, and Maserati receive more attention," Rhodes Jr said in the letter.

"Chrysler has deep roots in the American market, serving as a reliable and accessible option for the middle class. Does Stellantis understand this?

"Chrysler needs new products now, not tomorrow, not next year – now."

MORE: Chrysler heir calls on investors and workers to 'save Chrysler'

The flagship marque currently builds one vehicle – the Chrysler Pacifica minivan and its low-cost Voyager/Grand Caravan spin-off – following the discontinuation of the 300 sedan in 2023.

The US Stellantis National Dealer Council also recently criticised the leadership of former CEO Carlos Tavares, claiming its US division has been “left in an anaemic and diminished state”.

Now-retired Tavares announced in October 2024 a review of its brand portfolio will be undertaken as soon as 2026.

While Tavares was due to retire in 2026, he stepped away without a direct successor in December 2024 – reportedly after losing the support of the Stellantis board – with chairperson John Elkann taking the top job in the interim.

MORE: Jeep, Peugeot parent to consider downsizing its brand portfolio as soon as 2026

"This guy [Tavares] fired all the Americans," Moreno said. "He's been milking this company to death."

Earlier this year, Tavares threatened to 'shut down' brands operating at a loss – however Stellantis later said in a media statement it had "no intention" to shut down or sell its brands.

"Stellantis reaffirms its commitment to its entire broad portfolio of 14 iconic brands and recalls that each of them has a 10-year horizon [since 2021] to build a profitable and sustainable business," the group said in August 2024.

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