Stellantis dealers voice concerns over sales decline and brand issues

In the United States, Stellantis is facing significant challenges as its sales have dropped 21% in the second quarter of the year, with profits falling by 48% in the first half. The Stellantis National Dealer Council has expressed concerns in an open letter to CEO Carlos Tavares, warning that the company's current strategy could lead to long-term disaster, particularly affecting its iconic American brands like Jeep, Ram, Chrysler, and Dodge. The dealers have been raising alarms for over two years, indicating that the decisions made to boost profits in 2023 have resulted in a rapid degradation of these brands. The letter from the Dealer Council, signed by Chairman Kevin Farrish, emphasizes that the issues are not the fault of the dealers, employees, or the federal government, but rather stem from the company's management decisions. They are calling for accountability and a commitment to rectify the situation, urging Tavares to take action rather than seeking apologies or resignations. Despite the dealers' concerns, Stellantis has reported a 21% increase in sales from July to August and a slight improvement in market share. The company has introduced an action plan developed with dealer input, which they claim is already yielding positive results. However, the dealers remain skeptical, citing a lack of new models and a focus on electric vehicles that may not align with current consumer readiness. As the company prepares for upcoming product launches, the pressure is mounting on Tavares to address the dealers' concerns and ensure the sustainability of Stellantis's American brands in a competitive market.