- The National Dealer Council sent a scathing open letter to Stellantis CEO Carlos Tavares.
- The letter criticizes Tavares for “reckless short-term decision-making” causing a “disaster.”
- Stellantis responded, stating that “public personal attacks” are not the way to solve problems.
Stellantis can’t seem to catch a break these days. Its US dealer network is on the warpath, holding CEO Carlos Tavares accountable for the swift decline of the automaker’s brands. This isn’t mere grumbling—they’ve sent an open letter demanding that he allocate more funds to clear out old inventory and rejuvenate their American brands. The dealers’ message is unmistakable: fix this mess or watch their lots become graveyards for unsold cars.
The leadership of the Stellantis National Dealer Council (NDC), which represents the dealers network and its employees, has accused CEO Carlos Tavares of “reckless short-term decision-making,” resulting in “devastating” effects on the U.S. market. This includes the “rapid degradation” of iconic American brands such as Jeep, Dodge, Ram, and Chrysler, whose market share has been “slashed nearly in half.”
More: Fiat 500e Production Paused Because No One Is Buying It
The letter, signed by National Dealer Council Chairman Kevin Farrish, paints a grim picture of Stellantis in the U.S. It details how the “stock price is tumbling, plants are closing, layoffs are rampant, and key executives are fleeing the company.”
Dealers blame the downturn on Tavares’ 2023 performance, when he supposedly “engineered a record year of profitability for Stellantis,” pocketing a staggering “almost forty million dollars” in compensation. The letter advocates for clearing out old inventory and “getting the plants working at full capacity,” focusing on building cars that “Americans want to buy and can afford.”
The open letter was published on September 10, and Stellantis fired back with a response the following day. The company takes “absolute exception to the letter,” detailing the steps they’ve taken to address the admittedly disappointing financial results of H1 2024.
Stellantis also points out that it reported a 21 percent increase in sales this past August compared to July. The company added that its market share rose by 0.7 percent and dealer inventory has been reduced by approximately 10 percent over the last two consecutive months.
In response to claims of ignoring dealers, Stellantis countered that they “meet and talk monthly, have weekly calls, and personal conversations at the highest levels”. The company dismissed the open letter’s personal attacks on CEO Carlos Tavares, stating, “we don’t believe public personal attacks are the best way to address issues.”
As for the call for investments and new products, Stellantis dropped another press release on the same day, revealing a $406 million investment across three Michigan facilities.
The investment covers the swift retooling of the Sterling Heights Assembly Plant for the Ram 1500 BEV and REV trucks, while the Warren Truck Assembly Plant will ramp up production of the electrified Jeep Wagoneer. Additionally, funds are allocated to the Dundee Engine Plant for battery tray production and beam machining, alongside ongoing gasoline engine assembly.
