Sept 11 (Reuters) - Automaker Stellantis told
its U.S. dealers on Wednesday that its August sales were up 21%
from July, and its dealer inventory was reduced for two
consecutive months by approximately 10%.
Stellantis National Dealer Council's President criticized
CEO Carlos Tavares for the "rapid degradation" of the
automaker's brands and urged him to spend more money to clear
old inventory, Bloomberg News reported, citing an open letter
dated Sept. 10.
The retailers accused the chief of "short-term decision
making", which boosted profits last year and padded his
compensation which they claim have shrunk market share, the
report added.
The automaker also said market share was up 0.7 points in
August compared to last month and added that it doesn't believe
that "public personal attacks, such as the one in the open
letter from the NDC president against our CEO, are the most
effective way to solve problems."
The dealership could not be reached out for comment and its
President, Kevin Farrish, did not immediately respond to a
Reuters request for comment.
Tavares, who described Stellantis' ( STLA ) first-half results as
"humbling," had said the French-Italian automaker's North
American business suffered from a mix of high vehicle
inventories, manufacturing issues and a lack of "sophistication"
in how it addressed the local market.
In August, Reuters reported that Tavares visited the U.S. to
reassure employees,investors and meet dealers in the Detroit
area to discuss issues such as reducing inventories and
adjusting vehicle production.
Stellantis' ( STLA ) first-half operating income fell 40%, mainly due
to poor business performance in North America, its profit
powerhouse. Vehicle sales in the region for its top brands, Ram
and Jeep, have both declined at least 33% from the first half of
2019 to the same period this year, according to research firm
Cox Automotive.