Stellantis’ (NYSE:STLA) The U.S. dealership chain has criticized CEO Carlos Tavares for the “rapid degradation” of its brands, accusing him of “short-term decision-making” that boosted profits and his own compensation, according to an open letter obtained by Bloomberg.
The car manufacturer has laying off workers and reducing U.S. production to cut costs amid frail sales. It also lowered prices and restored incentives to get rid of bloated vehicle inventories.
But dealers are concerned that Stellantis (STLA) is further reducing its market share and hurting its Jeep, Ram, Dodge and Chrysler brands. They also believe Stellantis needs to spend more money to get rid of inventory.
“For more than two years, the U.S. Stellantis National Dealer Council has been sounding the alarm to your management team that the course you have set for Stellantis will be a long-term disaster,” the group said. he wrote in the letter. “A disaster not only for us, but for everyone involved – and now that disaster has come.”
Stellantis (STLA) has rejected the group’s claims. “At Stellantis, we do not believe that public personal attacks, such as those in the open letter by the NDC president against our CEO, are the most effective way to resolve issues.”
Business pointed to its action plan, which it says has yielded results, with August sales up 21% over July, market share up 0.7 points and dealer inventory reduced by about 10% combined for the next two months. “We’ve chosen a path that will prove successful.”