The automotive industry was shocked by the recent resignation of Stellantis CEO Carlos Tavares, citing irreconcilable differences with the board. Joe Laham, President of Premier Companies, joins us on the most recent episode of Inside Automotive to discuss the implications of this leadership change, what it means for dealerships, and the future of brands like Jeep and Ram.
Laham provides insight into the recent shakeup at Stellantis following CEO Carlos Tavares’ resignation. by reflecting on the company’s challenges. These challenges include inventory management issues and the impact on dealers. He also outlines that despite profit setbacks, his dealership’s volume has remained steady due to a $15 million investment in a Jeep-exclusive showroom.
In addition, Laham is optimistic about the future, citing positive leadership changes, particularly within the Jeep division. He believes the new CEO could steer Stellantis in the right direction, especially with brands like Jeep and Ram, and anticipates improvement in the next year. He also discusses the importance of delivering quality products at competitive prices, which is essential for brand success.
Further, Laham highlights that the upheaval at Stellantis is indicative of a broader trend, with other brands like Nissan also experiencing leadership challenges.
Despite these setbacks, Laham remains optimistic about the future of the automotive industry, particularly in the Northeast, where his dealership is thriving.
"If you create a quality product, you need to offer good value. This is something that several brands we've discussed have successfully done for years. For instance, we can’t just walk into a Jeep dealership and say, 'I want to buy a Grand Cherokee,' and then go next door to another dealer and find an Audi or BMW priced the same. That simply won't work." – Joe Laham.