UAW, U.S. dealers increase criticism of Stellantis CEO over cuts, sales declines
DETROIT — Stellantis’ U.S. dealer network has joined the United Auto Workers union in criticizing CEO Carlos Tavares for the company’s recent sales declines, factory production cuts and other decisions they deem detrimental to the automaker’s business.
DETROIT — Stellantis’ U.S. dealer network has joined the United Auto Workers union in criticizing CEO Carlos Tavares for the company’s recent sales declines, factory production cuts and other decisions they deem detrimental to the automaker’s business.
In an open letter to Tavares this week, the head of Stellantis’ U.S. dealer council, Kevin Farrish, condemned the chief executive for prioritizing the company’s profits at the cost of sales, market share and the reputations of its Chrysler, Dodge, Jeep and Ram brands. The council represents the company’s 2,600 U.S. dealers.
“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 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,” Farrish wrote in the Tuesday letter, which Bloomberg first reported Wednesday night.
Farrish, a dealer in Virginia, said the dealer council has raised concerns about the company’s operations for two years, and accused Tavares of “reckless short-term decision making” that boosted profits and padded his compensation but have led to the “rapid degradation” of its brands, he wrote.
Stellantis, in a statement Wednesday night, said it takes “absolute exception to the letter,” citing a 21% increase in August sales over July and an “action plan developed with the dealer body.”
Rating: 5