Stellantis US Crisis: Leadership Failure Demands a New Strategy

This episode is sponsored by Lockton, click here to learn more Watch the full video on YouTube - click hereStellantis is in a tight spot. With leadership shakeups, lawsuits, and strained relationships with suppliers, workers, and even shareholders, the company faces challenges from all directions. The once-powerful automaker is now reeling from significant internal and external turmoil. Yet, amid this crisis, a critical question remains: How can Stellantis turn things around and find a better way forward?In this episode of the Automotive Leaders podcast, Jan Griffiths brings on Kate Vitasek, a University of Tennessee faculty member and expert on collaborative relationships, to talk about how Stellantis can get through these tough times.Drawing on her work with major organizations, Kate discusses how Stellantis could benefit from a shift in strategy—away from adversarial tactics and towards collaborative contracting. She highlights the "Vested Methodology" — a method designed to build win-win relationships and foster cooperation rather than conflict.Jan worries that Stellantis' internal challenges are not only affecting its own stability but also sending ripples throughout the automotive world. Now, she calls for bold action: Tavares must step down immediately. Jan argues that Stellantis urgently requires a leader who understands collaboration, can mend these damaged relationships, and addresses the company's real issues.Kate agrees, saying, "Change the people or change the people." She urges Stellantis to rethink its leadership approach and points out that without a mindset shift from the top, the company may continue on its downward spiral.Towards the end, Kate Vitasek urges Stellantis to take swift, decisive action to break free from its crisis. Her advice? Gather the key leaders in a focused session, where they'd work together to craft a clear statement of intent—a roadmap to establish long-term goals and a unified direction. By confronting issues directly and with purpose, Kate believes Stellantis can realign itself for a stronger future.Themes discussed in this episode:The key reasons leading to the Stellantis US crisisChallenges in Stellantis’ supplier and union relationshipsThe ripple effect of Stellantis’ crisis on the automotive industryThe critical role of strong supplier and union partnerships for organizational stabilityThe impact of leadership decisions on organizational stabilityThe consequences of a win-lose mentality in business partnershipsUsing formal relational contracting to promote win-win solutionsTransforming adversarial relationships into collaborative partnershipsFeatured Guest: Kate VisatekWhat she does: An accomplished author and educator, Kate is a leading authority in strategic partnerships. She also heads research at the University of Tennessee and specializes in the Vested® business model. With experience at major corporations like P&G and Microsoft, Kate provides executive training and coaching, empowering organizations to excel in strategic collaborations and foster innovation.On leadership: “Anytime you have uncertainty, it makes people even more anxious. And so, getting in and making some decisive decisions, just bringing calmness back. Long-term, saying, this is where we're committing to not the decision for tomorrow. Take a pause. Move quickly, but take a little pause, bring everybody together, and create the goals for