The Chrysler heir’s actions plan to save his family’s brand from Stellantis

It’s no secret that Stellantis (STLA) the parent brand of American car brands Chrysler and Dodge, is in trouble.

Since the multinational automaker announced disappointing first-half 2024 earnings at the end of July 2024, the brand has taken many drastic measures to save money.

In an email sent to Stellantis employees just a week after the earnings report, the automaker offered white-collar employees voluntary buyouts before suggesting layoffs would occur if not enough employees voluntarily accepted the offers.

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On Aug. 8, the automaker announced it would lay off up to 2,450 assembly line workers at its Detroit-area Warren Truck assembly plant after ending production of a low-selling truck.

In addition, United Auto Workers President Shawn Fain used his speech at the Democratic National Convention to chide Stellantis for breaking his promise regarding the Belvedere assembly plant in his landmark contract.

“Let me be clear: Stellantis must keep the promises they made to America in our union contract,” Fain said. “And the UAW will take whatever action is necessary at Stellantis or any other corporation to stand up and hold corporate America accountable.”

From an outsider’s perspective, things don’t look great for the company that controls Chrysler, Dodge and Ram. However, one unexpected figure is stepping out of the shadows to voice his opinion on what the automaker should do with its beloved brands.

A Chrysler 300C at the Spirit of Detroit Plaza in Detroit, Michigan

GEOFF ROBINS/Getty Images

The heir returns

On August 22, Walter B. Rhodes, the great-grandson of Chrysler founder Walter P. Chrysler, wrote an open letter seeking to rally investors and workers to collectively save Chrysler, Dodge, Jeep and Ram from what he sees as being the bad management of Stellantis.

In a short video uploaded to YouTube and a letter published on the enthusiast blog Chrysler/Dodge Mopar Insiders, Rhodes highlighted Chrysler’s significance in American automotive history, a stark contrast to what the brand is under Stellantis’ control.

“The Chrysler brand, once a symbol of American innovation and ingenuity, is now at risk of fading into obscurity due to what I believe are poor decisions and mismanagement by its current owners, the Stellantis,” Rhodes wrote.

As the leader of a movement promising “much-needed” change, Rhodes accused Stellantis of being “out of touch” with American car buyers.

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With 15 brands under control, the Chrysler heir said Stellantis management “can’t give Chrysler the attention it needs.” He pointed out that even with CEO Christine Feuell at the helm of the brand, Chrysler’s products are being dragged to the bottom of the priority list in favor of it. of “slow-selling brands such as Fiat, Alfa Romeo and Maserati”.

Rhodes warned that with these misaligned plans, cheap and affordable cars from Chinese automakers like BYD could build cars that can lure buyers away from brands like Chrysler and Dodge, potentially devastating the U.S. auto market and auto manufacturing.

“Chrysler has deep roots in the American market as a reliable and affordable option for the middle class,” said Rhodes. “Stellantis gets this? Chrysler needs new products now, not tomorrow, not next year, now.”

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While the current situation shows the flaws within Chrysler and its associated brands, the heir is confident that “investors will see the potential to revive” a “historic brand” like Chrysler into something new.

The goal of his current campaign is to convince the top brass at Stellantis to offload their American brands; Chrysler, Dodge, Jeep and Ram in his hands, where a new “American-owned Chrysler,” partially owned by labor, “will not only focus on profit, but also on the people who build these cars.”

In a separate 17-page document addressed to Stellantis CEO Carlos Tavares and Chrysler brand CEO Christine Feuell, Rhodes highlighted the most important innovations in Chrysler’s history and extended an invitation to a “confidential discussion” for to discuss the subject in a more intimate setting. .

“The time for action is now, and I’m ready to step up and save the brand my great-grandfather built.”

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