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Stellantis’ U.S. dealer network has expressed concerns about CEO Carlos Tavares for the company’s recent sales declines and operational decisions that they believe are impacting the automaker’s business. In an open letter to Tavares, the head of Stellantis’ U.S. dealer council, Kevin Farrish, criticized the chief executive for prioritizing profits over sales, market share, and the reputations of its Chrysler, Dodge, Jeep, and Ram brands. The dealer council, representing the company’s 2,600 U.S. dealers, highlighted issues with the company’s operations and accused Tavares of making short-term decisions that have negatively affected the brands.

Stellantis responded to the criticism, noting a 21% increase in August sales over July and an action plan developed with the dealer body. The company emphasized its commitment to working with dealers to address challenges and achieve positive results, despite recent profit declines. Stellantis reported a first-half net profit decrease of 48% compared to the same period in 2023, with its stock price declining by roughly 36% this year.

Since the merger between Fiat Chrysler and France’s PSA Groupe in 2021, Tavares has implemented cost-cutting measures to improve profitability and aim for a revenue target of 300 billion euros by 2030. These efforts have included restructuring the supply chain, reducing headcount, and adjusting vehicle production at plants.

UAW President Shawn Fain has also publicly criticized Tavares, accusing him of price gouging consumers and failing to uphold parts of the labor contract with the automaker. The UAW, representing around 38,000 Stellantis employees, plans to hold a rally to denounce the “gross mismanagement” at the company. Stellantis’ U.S. sales have declined yearly since 2018, contrasting with the overall growth in the U.S. new light-duty vehicle sales market.

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