Stellantis has declined a request from Frank B. Rhodes Jr. to sell the Chrysler and Dodge trademarks. The automaker, facing pressure in North America and Europe, reiterated its commitment to maintaining its 14-brand portfolio, including Chrysler and Dodge, amidst ongoing industry challenges.
Stellantis Dismisses Request to Retain Chrysler and Dodge Trademarks in U.S. Control
Stellantis declined a request to acquire the Chrysler and Dodge trademarks, per Teslarati.
Frank B. Rhodes Jr., the great-grandson of the founder of the Chrysler brand, wrote a letter to Stellantis CEO Carlos Tavares and the current CEO of the Chrysler brand, Christine Feuell, last week. In the letter, Rhodes requested that the “Chrysler/Dodge, Plymouth/Mopar brands] remain in the United States under the control of stockholders and employees.” Rhodes composed the correspondence on behalf of Chrysler/Dodge, LLC, which was recently established.
Stellantis responded abruptly to Rhodes’ 17-page letter. In response to the letter, the organization issued an official press release that read:
“Stellantis acknowledges the interest in its North American brands and reaffirms the Company’s commitment to its portfolio of 14 powerful, iconic brands, each given a 10-year timeframe to build a profitable and sustainable business.
“Like the Jeep and Ram brands, Chrysler and Dodge are at the forefront of Steallnatis’ transformation to clean mobility, benefitting from the Group’s cutting-edge technology and scale. The Company is not pursuing splitting off any of its brands.”
Tavares declared its intention to eliminate unprofitable trademarks following the announcement of disappointing results for the first half of 2024. He promptly withdrew his statement. Tavares has also accepted responsibility for Stellantis’ subpar performance in North America.
Stellantis is experiencing pressure in the United States and Europe. Tavares recently visited Detroit to assess the organization’s current operations and devise a strategy to establish its trajectory in North America. Stellantis is currently under pressure from the Italian government in Europe to confirm its investment intentions in the country.
Italy Pressures Stellantis to Commit to Battery Plant or Risk Losing $410 Million in Funding
On the August 23 report, Stellantis is under duress from Italy’s Minister of Industry, Adolfo Urso, to construct a battery plant in the country or forfeit funding.
Minister Urso has requested that Stellantis verify its intentions to construct a battery facility in Italy in partnership with ACC. The Minister threatened to revoke the subsidies allocated to the project if the legacy automaker fails to respond.
“It is the duty of [Stellantis]… to relaunch the car industry in Italy today. And we have been waiting for these answers for far too long,” Urso said during a Rimini event.
Stellantis had established a joint venture with ACC to transform the automaker’s engine manufacturing site in Termoli into a battery production facility. According to Reuters, the Termoli factory was anticipated to commence operations in 2026.
Nevertheless, Stellantis and ACC suspended their plans in Italy earlier this year. The joint venture has shifted its focus to more cost-effective batteries. Stellantis disclosed on Thursday, August 22, 2024, that ACC was “further developing” its plans for the Termoli facility to “introduce a new technology for the production of cells and modules, in accordance with the market’s evolution.”
Around $2.2 billion in investments were anticipated to be allocated to the Termoli battery facility. Stellantis and ACC’s new facility was expected to receive a contribution of over $410 million from the Italian government. Italy’s contribution was funded by public funds, particularly the EU’s post-COVID recovery fund.
According to Minister Urso, the Italian government has granted Stellantis’ requests, including the Company’s proposal to allocate additional funds to a publicly funded purchase incentive. Politico also reports that the Italian government, at Stellentis’ request, opposed the EU’s new car pollution regulations, known as the Euro 7.
Stellantis’ operations in North America are also experiencing challenges. Carlos Tavares, the CEO of Stellatnis, is in Detroit for three days during his summer vacation. His objective is to restructure and enhance Operations in the United States.
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Publish date : 2024-09-01 06:18:00
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