Leaders of Stellantis NV's US dealer network have voiced their concerns and frustrations over the "rapid degradation" of the automaker's brands under the leadership of Chief Executive Officer Carlos Tavares. In an open letter dated September 10, the national dealer council accused Tavares of prioritizing short-term profits and padding his own compensation at the expense of the company's market share and the success of brands like Jeep, Ram, Dodge, and Chrysler.

The dealers expressed their discontent with Tavares' decision-making, stating that the actions taken last year to boost profits ultimately led to a shrinkage in market share and negatively impacted their ability to sell vehicles from the aforementioned brands. They emphasized the detrimental effects on the company as a whole and urged Tavares to allocate more funds to clear old inventory from their lots.

Stellantis, which has been grappling with declining sales in the US, has implemented various measures this year to address the issue, such as reducing vehicle prices and reintroducing incentives. However, dealers argue that these steps have been insufficient in protecting the company's profit margins and regaining market share.

The national dealer council has been warning the US executive team for over two years about the potential disaster that could arise from the chosen direction for Stellantis. Their concerns were dismissed, and now they feel vindicated as the predicted disaster has finally materialized. The dealer council believes that the negative repercussions extend beyond just themselves and will impact everyone involved.

At the time of reporting, Stellantis has not responded to a request for comment regarding the concerns expressed by its dealers. The criticisms put forth by the dealer network highlight the growing dissatisfaction with the leadership of CEO Carlos Tavares and emphasize the urgent need for a strategic shift to restore the brands and regain market share.

Stellantis, a multinational automotive company formed through the merger of Fiat Chrysler Automobiles (FCA) and Peugeot S.A. (Groupe PSA), faces the challenge of revitalizing its US operations as it navigates the rapidly evolving landscape of the automotive industry.