Stellantis responded to the US National Dealer Council’s (NDC) letter and addressed their concerns about the future of US brands under the company.
“We take absolute exception to the letter sent by the president of the Stellantis National Dealer Council [in the United States], Kevin Farrish. Last month, we introduced an action plan developed with the dealer body that has already shown results. August sales were up 21% over July, market share was up 0.7 points, and dealer inventory was reduced for two consecutive months by 42,000 units or approximately 10% in total,” replied Stellantis.
“This is the result of working together with our dealer network, and we want to thank them for their constant support and engagement.”
In its letter, the NDC raised concerns about Stellantis’ “reckless short-term decision-making” to secure profits in 2023, which resulted in “devastating” consequences for the legacy automaker in the US market.
In the first half (H1) of 2024, Stellantis’ operating income dropped by 40%, partly due to poor business performance in North America. The company’s top US brands, Ram and Jeep, saw a 19% decline from the first half of 2019 to H1 2024.
In July, Stellantis reported a 48% year-on-year slump in net profits, attributed to poor sales performance in North America. Last month, sales jumped 21% compared to July, and dealer inventories shrank by 10%, as Stellantis mentions in its response. However, dealers are more focused on long-term victories, not short-term wins.
The National Dealer Council invited Stellantis CEO Carlos Tavares to its next meeting in Auburn Hills on October 15, 2024.
“We meet and talk monthly and have weekly and personal conversations at the highest level. This is where such dialogue should take place,” said Stellantis in its response to the NDC letter.
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