From CNBC: 2024-09-12 12:59:24

Stellantis’ U.S. dealer network criticizes CEO Carlos Tavares for sales declines, factory cuts, and decisions hurting business. Dealer council head Kevin Farrish condemned Tavares for prioritizing profits over sales and brand reputations in an open letter to the CEO, citing plummeting market share and stock prices. Tavares accused of “reckless short-term decision making.”

Stellantis responded, citing a 21% increase in August sales and an ongoing action plan with dealers. The company expressed disapproval of public personal attacks against Tavares and emphasized working with dealers to deliver results. Stellantis reported a 48% drop in first-half net profit for 2024 and a 36% decrease in stock price this year.

CEO Tavares has been pursuing a profit-driven, cost-cutting mission since Stellantis’ formation in 2021. His “Dare Forward 2030” plan aims to increase profits and double revenue by 2030, leading to headcount reductions and plant production cuts. Stellantis employees and UAW President Shawn Fain have criticized Tavares for price gouging and non-compliance with labor contracts.

Stellantis executives described earlier cuts as tough but effective, while others found them excessively grueling. UAW holds a rally near Stellantis’ Warren Truck Assembly Plant to condemn “gross mismanagement.” Stellantis U.S. sales have declined since 2018, contrasting with the overall market’s 13% increase last year.



Read more at CNBC: Dealers, UAW condemn Stellantis CEO over cuts, sales declines