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Stellantis defends itself after US dealers flag concerns
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Stellantis defends itself after US dealers flag concerns
Sep 12, 2024 2:02 AM

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.

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