Stellantis dealers in U.S. blame CEO for ‘rapid degradation’ of its brands

Stellantis’NYSE: STLAThe U.S. auto dealer network has criticized CEO Carlos Tavares for the “rapid decline” of its brands, accusing him of “short-term decisions” that have increased profits and his own compensation, according to an open letter seen by Bloomberg.

The car manufacturer has The company has laid off employees and cut production in the United States to cut costs amid weak sales. It has also cut prices and reinstated incentives to clear bloated vehicle inventories.

But traders fear Stellantis’ market share could shrink further, hurting its Jeep, Ram, Dodge and Chrysler brands. They also believe Stellantis needs to spend more money to clear inventories.

“For more than two years, the Stellantis National Dealer Council in the United States has been sounding the alarm to your executive team that the path you have set for Stellantis will be a long-term disaster,” the group said. books In the message: “It is a disaster that does not only concern us, but everyone involved in it – and now the disaster has arrived.”

Stellantis (STLA) responded to the group’s allegations. “At Stellantis, we do not believe that public personal attacks, such as those in the open letter from the NDC chairman against our CEO, are the most effective way to resolve issues.”

The company tapered “We have embarked on a path that will prove successful,” the company said in a statement. “We have embarked on a path that will prove successful.”