Stellantis Can’t ‘Micromanage’ Itself Out Of This Crisis

I don’t have a good answer for what global automaker Stellantis should be doing to get itself out of a ‘disaster’ of its own making. It’s hard. I do have some questions about the current strategy and I’m not alone. The automaker seems to be under the belief that it can cut inventory, cut costs, and get through its issues as if a lot of small changes can add up to a big fix. I am doubtful.

Perhaps the company’s lawyers can sue their way out of this crisis. That is what’s happening now with Stellantis attempting to stop the UAW from striking over the company’s vague plans. It could be worse for Stellantis. What does worse look like? Whatever’s happening at Fisker right now.

And, finally, I will wrap up today’s Morning Dump with a little update on the movement of lithium prices.

Stellantis CEO: It’s Just A ‘Small Operational Error’

My favorite quote from Stellantis CEO Carlos Tavares (pictured above, far left) is his assertion that what’s going on at automaker Stellantis is just a ‘small operational error.’ I can’t be sure, because I wasn’t there, but I’m guessing he added “Yeah… that’s the ticket” to the end of the quote.

I’m not even sure where to start with Stellantis. If you’ve been reading The Morning Dump for a while, you’re aware that the company’s sales suck right now, its products are largely meh, and it seems to be in a fight with everyone all the time. Things are going so poorly that it sounds like the company is already looking for a new CEO when Tavares sees his contract run out, and there are rumors that the French government might push the company together with rival Renault.

It’s not good. The most pressing issue is that Stellantis dealers are, depending on the brand, either stuck with a ton of inventory of vehicles (Ram/Jeep/Dodge/Chrysler) or starved of new products (Alfa/Fiat). Here’s a chart that shows how the year is going, via Cox Automotive:

Toyota had a bad Q3 due to some recall issues but otherwise is seeing market share growth this year. Who isn’t? Tesla is down, for… reasons, and so is BMW. The big outlier? Stellantis is losing sales and losing a lot of market share. The obvious short-term solution is incentive spending, and there has been some incentive spending, but it hasn’t been a full-on blitz or strategic or large enough according to a dealer who spoke anonymously with Automotive News:

If rivals raise incentives “and we leave ours ostensibly the same for Q4 that we just ended the month with, is it going to be enough to carry the day?” said a dealer who asked not to be identified, per Automotive News.

Another issue is that older 2024 models, in this dealer’s view, were too expensive and need higher incentives than 2025 offerings that in some cases have lower prices when discounts are factored in.

“That’s the part that they’re not getting their head around,” the retailer said. “They’re trying to micromanage their way and hold as much profit, but we need to blow out the inventory so that the dealers will start ordering again and help them bring in money because that’s good for all of us.”

Stellantis: Let’s Just Sue The Union!

The UAW has told its members to be ready to strike Stellantis over the company’s possibly changing commitments to production in North America, which is a concession the union won in its big strike last year.

What’s Stellantis doing? Suing the UAW:

Stellantis filed the lawsuit Thursday evening in the U.S. District Court, Central District of California. It alleges the UAW is acting in “bad faith by going on a publicity campaign, filing sham grievances” and ignoring the contractual language that gives the automaker leniency in its future production decisions and “now calling a vote to authorize a strike based on these bad faith grievances.”

I have no idea whether or not the clause, called Letter 311, can be used this way, but I’m guessing we’re going to find out if it’s the UAW or Stellantis going down … down.

Fisker’s Bankruptcy Plan Might Be Interrupted By The SEC

It’s been a bad week/month/year for Fisker, and the company’s plans to file for bankruptcy have been interrupted by an SEC investigation according to TechCrunch:

The company recently reached a settlement plan with its creditors on how that liquidation will go, but the SEC on Friday filed an objection to the plan. The commission said it’s concerned there is insufficient language protecting its ability to pursue the company or other parties in its investigation. The SEC also objected to the settlement because it makes no mention of how, or even if, Fisker plans to preserve its corporate records.

“The Commission has outstanding investigative subpoenas and may have the need to request or subpoena additional documents in the future relating to its ongoing investigation,” the SEC wrote in the filing. The SEC also said it has asked Fisker where its corporate records will be maintained after a settlement plan is enacted but “has not received any response.”

That’s not great.

Rio Tinto Tries To Buy Lithium Producer Before Prices Go Up

I love this chart of spot lithium prices from Trading Economics because it does a decent job of mimicking the hype cycle for electric vehicles so well. The price of lithium carbonate has plummeted from the highs of the pandemic, due in part both to increased supply and stabilized demand expectations.

That hasn’t stopped major mining firm Rio Tinto from trying to get in on lithium.

Per Reuters:

Reuters exclusively reported on Friday that the companies had been holding talks, and Arcadium could be valued at $4 billion to $6 billion or higher.

The approach was confirmed by both parties on Monday in separate statements that did not offer financial. It follows a sharp slump in lithium prices and months of speculation over a potential deal.

“The approach is non-binding and there is no certainty that any transaction will be agreed to or will proceed,” Rio said in its statement. Both companies said they would not comment further.

For a while I owned Rio Tinto stock and I had to go back and check. It doesn’t look like I do, which makes reporting on this easier, though it’s a bummer because the stock is doing quite well now.

What I’m Listening To While Writing TMD

I’m not a huge Arctic Monkeys fan. I like them but I don’t seek them out. The weird, Siverlake-on-the-moon concept album “Tranquility Base Hotel And Casino” is the exception. This is my jam.

The Big Question

Who do you think is more likely to turn it around next year? Fisker or Stellantis?