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The Street
The Street
James Ochoa

Stellantis exec makes bold prediction for 2025

Stellantis  (STLA) , the multinational automaker parent company of beloved American auto brands Chrysler, Jeep, Dodge, and Ram Trucks, is heading into light, emerging from much darker times. 

The car company, including European giants like Fiat, Maserati, Peugeot, and Citroën, previously suffered from issues that hurt its relationships with dealers and customers. 

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In the latter months of 2024, under the leadership of former CEO Carlos Tavares, the automaker experienced turmoil, including huge inventory issues, layoffs affecting American factory workers, and a shuffling and exodus of key executive and C-suite figures, all while pushing products that its important American customers scoffed at.

Tavares left as Stellantis CEO in early December 2024, leaving the helm to Chairman John Elkann and an interim executive committee. The energy following his departure is high, and executives are confident that 2025 will turn a new page on the Stellantis story. 

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Stellantis

Stellantis exec predicts epic comeback for the brand

Every year, the National Automobile Dealers Association (NADA) puts on a convention to showcase the latest technology and products to help auto dealers grow and serve as a forum for auto brands to link with their retailers. 

This year, following a sales year in which total sales dipped up to 15%, recently re-appointed U.S. sales chief Jeff Kommor noted that 2025 will mark "the most epic comeback in automotive history," as he noted that a wave of change is coming after the departure of former CEO Carlos Tavares.

“Keep an eye on us all year long,” Kommor told Automotive News. “You’re going to see incremental improvements, you’re going see momentum, you’re going to see sales gains. The dealers got our back, we got their back, and I feel like we’re starting to gain their trust and optimism back. 2024 was just not where any of us needed to be.”

Increased marketing efforts are key tenets of comeback

Stellantis North America COO Antonio Filosa is the highest leader at the North American level and was responsible for reappointing Kommor back to the U.S. sales position shortly after Tavares' departure in early December 2024. 

Formerly appointed to Stellantis's commercial sales division, Kommor noted that a key tenet of the so-called "comeback" he is selling is a return to an increased focus on marketing and cool, new products in competitive segments. 

“We’re exploring powertrain opportunities, getting ourselves back into segments that we had exited, putting our product in competitive positions, improving our quality,” Kommor told AN. 

“And then also helping the deals with advertising to make sure we’re supported in the marketplace at Tier 1 and Tier 2 to drive the message that we need, which are tools that we didn’t have over the last couple of years.”

More Automotive:

Kommor's emphasis on "Tier 2" marketing is important to note, as Stellantis has exacerbated this issue within the last year. In layman's terms, marketing in the automotive industry is split into three tiers: Tier 1, Tier 2 and Tier 3. 

Tier 1 advertising consists of the big, national advertising and marketing campaigns that live on social media, television commercials, and other mediums and generate views from all over the country. 

Tier 2—which Kommor has emphasized—consists of campaigns led by the big regional and metropolitan dealer groups, e.g., Boston Area Dodge-Jeep-Ram dealers. In contrast, Tier 3 consists of individual dealer marketing. 

Kommor's emphasis on Tier 2, smaller, more focused advertising with regional dealer groups, is something to note. Dealer leaders emphasize that it helps sell cars that a big, splashy ad on Instagram, TikTok, or YouTube can't. 

“At Tier 1, you can’t talk about some of the accessories on some of these vehicles, some cool features,” Stellantis National Dealer Council Chairman Michael Bettenhausen told Automotive News. “Tier 2 gives you that ability, and also gives you that ability to tie into the local and regional markets to really get the incentive right and then get your share of voice improved.”

Related: The Stellantis and UAW dispute is coming to an amicable end

Regional dealer marketing isn't STLA's latest push 

Though more marketing dollars at the regional levels in the U.S. are one tenet to Stellantis' dedication to turning itself around, it isn't the only marketing move it is trying to get more people in the driver's seat of its cars. 

Recently, the Dodge brand announced that it is launching the Badassador Program, an aptly named influencer marketing program that seeks to turn the most social media-savvy content creators into the next generation of bonafide Dodge-backed brand ambassadors.

According to Dodge, a Badassador is defined as "a brand ambassador with a Dodge attitude." Still, in essence, they will be the faces of Dodge both online and at real-life events where Dodge might be, such as auto shows, vehicle launches, enthusiast events, and NHRA events, 

In addition, Dodge says that these special few will also enjoy cool perks, including exclusive VIP access to Dodge events with a special 'Badassador Card,' complimentary Dodge-branded gear and merchandise, access to Dodge vehicles for content creation, prime exposure on Dodge's socials and face-time with Dodge execs and celebrities.

"We continue to push the boundaries of performance, and we’re looking for brand ambassadors who are also ready to shake up the status quo," Dodge CEO Matt McAlear said in a statement. 

"If Dodge isn’t pushing boundaries, if Dodge isn’t making people uncomfortable, we wouldn’t be Dodge, and those are the kind of ambassadors the brand is looking for: enthusiasts who disrupt, who will stand out and shine a light on the next generation of Dodge muscle."

Stellantis NV is traded on the New York Stock Exchange under the ticker STLA

Related: Veteran fund manager issues dire S&P 500 warning for 2025

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