Carlos Tavares was named CEO and Chairman of Group PSA in 2014. When the French conglomerate merged with Fiat-Chrysler Vehicles in 2021, he grew to become the primary CEO of Stellantis. However American sellers aren’t precisely thrilled with how the 66-year-old Portuguese businessman is steering the ship.
In an open letter to Tavares, the US Stellantis Nationwide Vendor Council accused the CEO of main the world’s fourth-largest automaker towards a “catastrophe.” Sellers are notably sad with how the top honcho banked practically $40 million final 12 months. As well as, the large boss is criticized for inflicting the “fast degradation” of Jeep, Ram, Dodge, and Chrysler.
Jeep gross sales fell 9% within the first half of 2024 whereas Ram dropped by 26%. Chrysler suffered an 8% decline whereas Dodge was down by 16%. Fiat was up 67% however that sounds higher than it truly is for the reason that Italian model solely offered 316 automobiles within the US by way of June. As for Alfa Romeo, deliveries rose by 2%.
Obtainable in PDF format and dated September 10, the open letter highlights the massive considerations sellers in the US have about the place Stellantis is heading:
“The market share of your manufacturers has been slashed practically in half, Stellantis inventory worth is tumbling, vegetation are closing, layoffs are rampant, and key executives fleeing the corporate. Investor lawsuits, provider lawsuits, strikes–the fallout is mounting. Your individual distribution community, your supplier physique, has been left in an anemic and diminished state.”
Stellantis has already issued a response:
“At Stellantis, we don’t consider that public private assaults, such because the one within the open letter from the NDC president towards our CEO, are the best option to remedy issues. We now have began a path that may show profitable. We’ll proceed to work with our sellers to keep away from any public disputes that may delay our capability to ship outcomes.”
However not all the pieces is gloom and doom at Stellantis. This week, it introduced plans to take a position $406 million at three Michigan vegetation to construct electrical automobiles alongside their combustion-powered counterparts. One of many factories is Sterling Heights the place Tavares just lately stated that too many vehicles want repairs proper after leaving the meeting line.
For extra excellent news, not one of the 14 manufacturers beneath the company umbrella shall be axed. Though Tavares stated in July that unprofitable automakers can be eradicated, a subsequent official assertion from Stellantis reiterated the corporate is sticking with its unique plan introduced in 2021.
When the automotive juggernaut was created in early 2021, Tavares pledged to pour cash into all manufacturers for 10 years. Meaning struggling manufacturers similar to Chrysler within the US in addition to Lancia and DS Vehicles in Europe must be secure till a minimum of the top of the last decade.
Stellantis seems to be making efforts to spice up high quality, a lot in order that the Wagoneer S may very well be delayed till the primary Jeep EV for America delivers “excellent high quality.”
US sellers need Tavares to make the best selections in order that Stellantis can regain the misplaced market share and absolutely make the most of the out there manufacturing capability. How? By getting “your workers, our workers, and your suppliers’ workers again to work by constructing and promoting automobiles that People wish to purchase and may afford.”
The US Stellantis Nationwide Vendor Council says it noticed this unlucky state of affairs coming and “has been sounding this alarm” to the chief workforce for greater than two years. They accuse the CEO of setting a course that “was going to be a catastrophe in the long term. A catastrophe not only for us, however for everybody concerned–and now, that catastrophe has arrived.”
Stellantis’ rival Volkswagen Group can be going by way of troublesome instances. Monetary boss, Dr. Arno Antlitz, stated final week that the corporate has “one, possibly two” years to show issues round.
