10:02 AM EDT, 09/12/2024 (MT Newswires) -- (Updates with Stellantis' ( STLA ) response starting in the fourth paragraph and stock movement in the final paragraph.)

Stellantis' ( STLA ) US dealer network criticized Chief Executive Officer Carlos Tavares for the "rapid degradation" of their brands due to his "short-term decision making," an open letter dated Tuesday from the national dealer council showed.

Tavares' leadership boosted profits last year and padded his CEO compensation, but it ended up shrinking Stellantis' ( STLA ) market share and hurting the Jeep, Ram, Dodge and Chrysler brands, retailers claimed.

"For over two years now, the US Stellantis National Dealer Council has been sounding this alarm to your US executive team, warning them that the course you had set for Stellantis ( STLA ) was going to be a disaster in the long run," the group said in the letter. "A disaster not just for us, but for everyone involved - and now that disaster has arrived."

Stellantis ( STLA ) told MT Newswires in an email that it rolled out a plan in August with the dealer body that yielded results as last month's sales were 21% higher than in July, while dealer inventory was reduced by 42,000 units for two consecutive months.

The company also said that it does not believe that "public personal attacks," including the one in the open letter from the Stellantis National Dealer Council President Kevin Farrish against the company's CEO, are the "most effective" strategy to resolve issues.

"We have started a path that will prove successful. We will continue to work with our dealers to avoid any public disputes that will delay our ability to deliver results."

Shares of the company were down 2.9% in recent Thursday trading.

Price: 14.77, Change: -0.44, Percent Change: -2.89