Stellantis council chair: Something for everyone

The transition to electric vehicles is inevitable, but whether Stellantis can reach its 2030 target of EVs accounting for half of its U.S. sales remains to be seen, the automaker's dealer council chair said.

But so far, Kevin Farrish likes what he's seeing from Stellantis' electrification strategy. In the U.S. market, Stellantis will soon have a collection of traditional gasoline-powered models, plug-in hybrids and its first EVs when products such as the Ram 1500 REV and Wrangler-inspired Jeep Recon arrive this year. Farrish, 59, says Stellantis will offer powertrain options for everyone.

Farrish, who owns Farrish Chrysler-Jeep-Dodge-Ram and Farrish Subaru in Fairfax, Va., began his one-year stint as chair of the Stellantis National Dealer Council in January. He spoke with Staff Reporter Vince Bond Jr. about Stellantis' EV plans, vehicle affordability, incentive support and auto shows. Here are edited excerpts.

Q: It's been three years since the merger between Fiat Chrysler Automobiles and PSA Group. How is it working out so far?

A: It's been a unique three years for all of us and for all automakers. You moved from COVID challenges to going back to business-as-usual type challenges. As far as Stellantis goes, we work together. That really hasn't changed. The group of people we're working with is pretty much the same group that we worked with before. So that really hasn't changed.

Stellantis has cut entry models such as the Jeep Renegade and Cherokee. Do you agree with those moves?

That is a very important segment to all of us. It wasn't something that we had necessarily anticipated, but they don't ask for our permission, right? It puts more focus and need on our Compass, and I do know that they've done some pricing actions on Compass to make sure that it fills the void.

Looking back on the Renegade and Cherokee, will you miss those vehicles at all?

I don't like losing any model, but I'm not privy to what goes through their mind on why they would make changes when they make them. There wasn't a huge profit opportunity in Renegade — it was more of a loss leader. I liked it just because it got people in that maybe are first-time buyers, so that's a natural piece that I think is important for all automakers to have, especially Chrysler, Jeep, Dodge [and] Ram.

I miss them personally, but I do believe that [Stellantis has] a long-term vision and they have led us well and I'm counting on them to continue to lead us into the future.

Stellantis wants half of its U.S. sales to be EVs by 2030. Is that realistic?

First and foremost, I think in general, EVs are inevitable. I think it's good to see our migration; whether or not that timetable is achievable or not is to be seen. But I know if they produce it and it's at the right price and consumers want them, dealers will absolutely stock them and we'll sell the heck out of them.

Dealers want what we can sell. EVs for the sake of EVs? No. It's showing on all makes of EVs that sales have slowed of late. But I do believe that long term that EVs are critically important, especially as the technology continues to evolve and get there.

You guys, I'm sure, are writing right now about [extreme cold weather in] Chicago and what that's done to Tesla EVs. We're not turning a blind eye to that stuff, we're seeing it, so are other consumers that are potentially interested in EVs.

I personally believe that our government shouldn't be pushing it as hard as they are. I think they should get the best technology out there, incentivize technology and let the consumer appetite drive that number. It shouldn't be an arbitrary number that they say you have to get to.

I do like our track of having both EVs and 4xe's, which are [plug-in] hybrids. I love the fact that we have [internal combustion engine] vehicles, we have 4xe's in our hybrids and we have EVs. That's saying that we're, as a manufacturer, are trying to be all things to all people that are in that funnel. We have something for you.

What upcoming vehicles are you most excited about?

Ram 1500 [REV] and the Jeep Recon. Those two vehicles hit the perfect sweet spot. The Recon keeps the Jeep authenticity and the Ram 1500 is the natural next progression for Ram. It's already a phenomenal truck. We're not going to stop selling [internal combustion engine] vehicles, pickups, but it just adds such a value and having something in addition to that, for those that are looking for it.

What are some areas where Stellantis can improve?

We could make a laundry list of what the dealers and all of us can improve. I can speak to how the company can continue to help the dealer network succeed. What we need most is we need product that customers desire that are built the very best they can be built and are affordable.

If you ask that question to any [national dealer council] guy for any automaker, that's pretty much what we're looking for. How good a job is Stellantis doing in that? Like all businesses, we have ebbs and flows.

I think we could do a better job of really working on our inventory concerns — that would be probably the only thing that I would say that we need to work better. But we're working on that together, minute by minute, day by day, to identify those that are maybe a little long in the tooth in inventory and they're adding incentives, they're doing the necessary things.

I don't think there's really anything to be critical over. I think it has more to do with just continuing that dialogue. That's something that we could probably do more of and do better at. But we're doing it.

Jeep has broadened its reach with three-row models and is moving upmarket. Is this strategy paying off?

Yes, absolutely. Wagoneer is a phenomenal vehicle. I drive one every day. I absolutely love it. I don't need that size, but I like that size and it was a vehicle [that] I really enjoy all of what it offers me. It's like a cockpit in a really, really nice plane. My previous vehicle was a Grand Cherokee L. I'm pretty good to comment on these because those are the only two vehicles I've driven in the last four years. They've done a phenomenal job with them. At the end of the day, it's still a pretty low percentage of the market. They need to continue to develop the higher volume products so that we can get our share back.

Do you think vehicle affordability is a cause for concern for Stellantis, or is the pricing just right?

There is definitely some room for improvement here. I'm happy to report that Stellantis has been adjusting their pricing on various models from an MSRP and incentive standpoint. I believe that they're going to continue to do that throughout their lineup. I think they have recognized that is a concern, and that's something that they need to work on, and us work together on. And we are doing that, actively doing that.

How is the incentive support these days?

We have regular conversations with scientists on incentives. Way more times than not, they hear us and adjust accordingly. It's in their best interest to help the dealers move out the ground stock that we have today. I actively see them doing that.

Stellantis is starting to pull out of auto shows. What do you think about that decision?

We don't always have to agree on things. We've had the discussion at the national level. They basically gave us their business plan and logic behind it. We've agreed to disagree. That doesn't mean that's going to dictate what we do in the future. Ironically, some automakers that haven't been in the auto shows are going in. They're paying attention to all aspects. But for now, this year, they have decided and, like or not, we support their decision.

They're staying in a few shows. They're predominantly doing more of the ride-and-drives. I'd rather see them put more money in Tier 2 and Tier 3 [advertising], if that's the case, because both are very high funnel items and I think they're very important. But if it has to be one versus another and you can make a business case to say that it's better to be on Tier 2, then so be it. I think they're just repositioning to try and make sure this is the best use of our funds. But I'm a big proponent of auto shows.

Stellantis isn't going to advertise at the Super Bowl this year. Did that surprise you?

It was a surprise; a little disappointing. But at the end of the day, there's a great deal of money that requires. It's not just the ad itself, it's all the other things that go behind it.

I do look forward to their ads because they've always done a great job with their ads. I have a feeling that it might be, you go in this year or you go out next year, whatever. It's not the end of the world. I think they're making their decisions because of all other things that they're trying to achieve. And that puts a lot of money back in the mix for them. They're a very focused organization right now.

Looking back to last fall, how did the UAW strike impact your operation?

I think we entered the strike with a really good amount of inventory and parts, so [dealers weren't too] impacted because of the UAW strike. I think as much as dealers could plan for, not knowing how long it would last, having zero control or any involvement in any part of it, I think most dealers reacted to it very well — as well as you could.

Dodge, Jeep and Ram are getting ready to launch their first EVs this year. How will you convince shoppers to give these vehicles a chance?

I think the manufacturer needs to drive that business to us. We're all actively training and making sure that we're 100 percent knowledgeable of the proper things to identify and share with our customers. At the end of the day, we're consultants. The days of sales, that's over, it's been over for a long time. Our job is to expose the clientele and the public to the product, the best way possible. At that point, it's up to them. I'm excited to do it because I'm looking forward to learning.

I can't wait to see the next wave and when battery technology gets to solid state. That's the game changer in my view from what I've read. I'm excited to get the product. My sales team is excited to be in a position of customers coming and looking at it. And if they ultimately buy it and want to be that adopter, great, that's what we're there for.

One thing I can absolutely tell you with conviction is car dealers and our teams want to sell something. We don't care if it's an EV or an [internal combustion engine] or hybrid. We just want to make a happy customer. It's going to be interesting to see how our products compete in the EV market from functionality through affordability through everything. Stellantis believes that we're absolutely set for great things and I'm very hopeful that they're accurate.

Are you making big investments in vehicle chargers?

I am, because it's do it now or do it later. I'm actually very, very happy that I'm doing it now because if you don't, I'm not sure that you will be able to. I'm installing a Level 3 charger and three additional Level 2 chargers to complement what we already have in Level 1 chargers. We know that's where the market is eventually going. If you're going to go, your least cost is now. We made that commitment. We're in a metro space. I might view it differently if I wasn't in a metro, but I am absolutely in a metro and I think that's what our clientele expects us to have.

Is Stellantis helping to train your salespeople and your fixed-operations people on EVs and how to get ready for them?

Yeah, they have a dedicated piece on training for all the different sales associates, technicians, service advisers, management, all of it. More are getting ready to be rolled out. They understand and that's certainly part of our requirement to have completed in order to sell EVs. They have a system. Fortunately, I can say this: I agree with the vast majority of their system. They're working it. If you want to sell them, then you've got to check those boxes.