The US National Dealer Council sent a scathing letter to Stellantis CEO Carlos Tavares, emphasizing concerns about the automaker’s past decisions and future plans.
The Chairman of the Council, Kevin Farrish, stated in the letter that the US dealer network has warned Stellantis for over two years about the repercussions it would face if it continued its course.
“The reckless short-term decision-making to secure record profits in 2023 has had devastating yet entirely predictable, consequences in the US market. Those consequences include the rapid degradation of our iconic American brands—brands like Jeep, Dodge, Ram, and Chrysler that have over a century of history in America.”
In August, Stellantis received a proposal to buy back Chrysler, Dodge, and Plymouth/Mopar brands, citing similar reasons. The proposal was requested by the great-grandson of the founder of the Chrysler Corporation on behalf of the newly formed Chrysler/Dodge, LLC Rhodes group. Stellantis rejected the proposal.
The letter also mentioned Tavares engineered a record year of profitability for Stellantis last year, which ultimately led to a drastic market share downturn, hinting that the company focused more on a passing win than long-term victories. Those short-term wins have yielded disastrous results, affecting Stellantis executives and employees alike in the United States.
“The market share of your brands has been slashed nearly in half, Stellantis stock price is tumbling, plants are closing, layoffs are rampant, and key executives [are] fleeing the company. Investor lawsuits, supplier lawsuits, strikes—the fallout is mounting. Your own distribution network, your dealer body, has been left in an anemic and diminished state.”
The US National Dealer Council demands Tavares to work alongside Stellantis executives in America, starting with attending the next Council meeting on October 15, 2024, at the Auburn Hills headquarters.
Tavares took responsibility for the degradation of Stellantis’ operations in North America, especially in the United States. In August, he visited Detroit to inspect the state of Stellantis factories and develop a strategy to fix issues hampering progress.
On September 11, 2024, Stellantis announced a $406 million investment to renovate and enhance three of its factories in Michigan. It also released details for a multi-energy strategy, outlining Stellantis’ plans to produce electric vehicles and new vehicle architecture in MI factories.
Read the US National Dealer Council’s full letter to Stellantis below.
Stellantis Faces Backlash from US Dealers:Letter 2024 by Maria Merano on Scribd
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