Thu Sep 12 01:30:30 UTC 2024: ## Stellantis Sales Rise, But Dealer Council Criticizes CEO Over Declining Market Share
**DETROIT** – Stellantis, the automaker formed by the merger of Fiat Chrysler and PSA Group, reported a 21% increase in U.S. sales in August compared to July. The company also saw a 10% reduction in dealer inventory for the second consecutive month. However, the positive sales figures are overshadowed by a growing conflict between the automaker and its dealer network.
The Stellantis National Dealer Council (NDC) has publicly criticized CEO Carlos Tavares for a perceived decline in the company’s brands and urged him to invest more in clearing old inventory. In an open letter, the NDC accused Tavares of short-term decision-making that prioritized profit maximization over long-term brand health, leading to a shrinking market share. They claim these decisions have ultimately hurt both the company and its dealers.
Stellantis, in response, emphasized the August sales increase and market share gains. The company refuted the claims made in the open letter, stating that such public attacks are not an effective way to address issues.
The conflict highlights the challenges Stellantis faces in its North American market. Despite recent sales improvements, the company has grappled with high inventory levels, manufacturing issues, and a perceived lack of understanding of the local market. These challenges led to a 40% drop in the company’s first-half operating income, primarily due to poor North American performance. Sales for key brands like Ram and Jeep have declined significantly compared to 2019.
The ongoing dispute between Stellantis and its dealer network underscores the crucial role of dealer relationships in the automotive industry. The situation is likely to be closely monitored as both parties seek to find a solution to address the concerns raised by the NDC.
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