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Chrysler and Dodge face mortal danger under Stellantis. It’s time for a change

Stellantis has let the Chrysler and Dodge brands deteriorate to the point where there may be no turning back. This needs to change – and fast.

But before I get into that, a necessary disclaimer: I’m the great-grandson of Walter P. Chrysler, the founder of Chrysler. My grandmother, Bernice Chrysler, told me before she died in 1979 to do everything I could to “keep the engine running.” While my career was in furniture manufacturing, I remained deeply involved with American Chrysler fans, serving as an unofficial brand ambassador and advocate (video).

In August, I wrote a 17-page open letter calling for the Chrysler and Dodge brands to be returned to American hands to Carlos Tavares and Christine Feuell, CEOs of Stellantis and the Chrysler brand, respectively.

These once-proud American brands languished under Holland-based Stellantis. We proposed the creation of a new entity – tentatively named The New Chrysler/Dodge LLC – to acquire the Chrysler and Dodge brands. Stellantis rejected this idea, saying Detroit Free Press that it remains committed to each of the 14 brands in its portfolio, including Jeep, Ram, Dodge and Chrysler, in addition to European brands such as Fiat, Opel, Peugeot and Alfa Romeo.

The brands “were each given a 10-year window to build a profitable and sustainable business,” a company spokesman told the newspaper. “Like the Jeep and Ram brands, Chrysler and Dodge are at the forefront of Stellantis’ transformation to clean mobility, benefiting from the group’s cutting-edge technology and scale. The company is not looking to separate any of its brands.”

EV obsession, stagnant formation

But in my opinion, Tavares doesn’t care enough about Chrysler and Dodge. While enjoying an exorbitant salary criticized by investors, he has embarked on cost-cutting as factories lie in disrepair, sales are down and dealers are in dire need of new products.

Stellantis put Chrysler on a path to an all-electric lineup by 2028, a questionable move given broader market trends. Other automakers are turning to hybrid electric vehicles (HEVs) to address the slowing growth of fully electric vehicles (EVs). Many brands admit that the extra costs, limited charging infrastructure and inconvenience of EVs have hindered widespread adoption, prompting them to focus on fast-selling hybrids as a more practical solution. Chrysler has launched a plug-in hybrid EV (PHEV) version of the Pacifica minivan, but it appears steadfast in its pursuit of an all-electric future, a strategy that could spell the demise of the brand.

One of the most discouraging aspects of Chrysler’s recent history is the lack of new products. The brand hasn’t launched an all-new vehicle since 2017 (the Pacifica), leaving its lineup stagnant. During this time, several promising concept vehicles, such as the Chrysler Airflow, were revealed and appeared production-ready, only to be scrapped. These abandoned projects not only wasted valuable resources, but also highlight the brand’s missed opportunities to remain competitive.

Dodge, for its part, offers both electric and internal combustion engine (ICE) versions of its new products. However, even with this balance, the brand seems too focused on EVs – something the core buyer base doesn’t necessarily want. Dodge buyers have traditionally been enthusiasts for American muscle and performance, and while electrification is part of the future, pushing to transition too quickly risks alienating loyal customers.

Chrysler’s upcoming electric crossover, expected to arrive late next year, will enter a crowded segment where it will need to really stand out in order to succeed. Chrysler was once known as an innovator and engineering powerhouse, but over the past two decades, it has become a company that follows trends rather than sets them. To survive, Chrysler must reclaim its heritage as a brand that stands for luxury and innovation.

For Dodge, the way forward is to expand its lineup with products that resonate with its American-centric identity. Dodge has excelled with muscle cars and performance SUVs, but the brand can do a lot more to restore its place in the market. A mid-performance sedan with a smaller, more efficient turbo engine, for example, would allow Dodge to offer an affordable and attractive alternative to electrification. And making the Dodge Hornet in North America — rather than at an Italian Stellantis plant and then shipping it to the U.S., as is the case now — and lowering its cost would make the compact SUV more attractive to buyers looking for the first their crossover or family vehicle. further enhancing Dodge’s appeal.

There is enormous potential for both Chrysler and Dodge to succeed, but it requires listening to their customer base and focusing on what made these brands iconic. Instead, Stellantis continues to push overpriced products into a high-interest market with questionable build quality stemming from its outsourcing practices. American shoppers especially crave products designed and built in America, but this is something Stellantis seems to overlook. Without a course correction, Chrysler and Dodge risk losing their loyal customer base and their valuable place in the American automotive landscape.

A leader who knows cars

This is a code red situation. Stellantis needs a leader who understands the passion behind these brands – someone who can reignite the spirit of Chrysler and Dodge. Tim Kuniskis, the recently retired CEO of Dodge and Ram, would be the perfect candidate to fix these brands. However, for this to happen, Stellantis would need to give him the autonomy to lead them without the constant pressure of the council’s constraints. Only then can brands be revitalized and returned to their former glory.

Stellantis needs a leader who understands the American auto market from a car enthusiast’s perspective – someone who can build on the legacy of Chrysler and Dodge and develop vehicles that speak to what customers here really want. A leader who knows cars, not just balance sheets, can guide these brands back to their roots, making vehicles people actually want to buy instead of forcing them into trends they’re not ready for.

Last month, Stellantis made a public announcement about finding a successor for Tavares. This could signal a change in direction and an opportunity to revitalize Chrysler and Dodge.

On the other hand, Tavares recently stated that any Stellantis brand that fails will be cut. Chrysler employees, wondering when the ax will fall, are worried about their jobs. Executives are offered early retirement to save money. Chrysler dealers are in dire need of affordable products to sell.

Since I wrote the open letter, thousands of Chrysler fans have contacted me to bring the brand back to our country. Next summer, many of them will join me in celebrating 100 yearsth anniversary, including in Pennsylvania at a large and nostalgic event Chrysler 100 (video) — Americana at its best. But without action, the future looks bleak.

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Opinions expressed in Fortune.com comments are solely the opinions of their authors and do not necessarily reflect the opinions and beliefs of wealth.

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