Stellantis’ U.S. dealership managers have directly requested more substantial incentives from CEO Carlos Tavares and executives via a letter to reduce vehicle inventory, which for some vehicles exceeds a year’s worth of stock. Kevin Farrish, president of the National Dealer Council, stated that the dialogue was constructive and that the dealers’ association won’t hesitate to express their needs, keeping communications open.
Dealers and UAW union in the United States lash out against Stellantis’ CEO, Carlos Tavares
Stellantis dealers have expressed dissatisfaction with an unsuitable product range and excessively high prices, which have led to an accumulation of trucks and SUVs on their lots. United Auto Workers union executives are also disappointed and have harshly criticized the company for postponing the reopening of the Belvidere plant in Illinois and the planned layoffs of up to 2,400 workers at the Warren plant. On Thursday, over 100 workers participated in a protest, during which union president Shawn Fain called Carlos Tavares “a terrible CEO”.
Stellantis confirmed the meeting between its CEO and the dealer council. A statement sent by spokesperson Rick Deneau affirmed that dealers’ concerns, including profitability and “the need to work together and build on our sales successes from last month, were openly discussed”. The automotive group added that the meeting was cordial and participants left “aligned and determined to solve problems, together”.
Meanwhile, in recent weeks, the UAW has intensified its actions against Stellantis, threatening to declare a strike as early as next month if the automaker doesn’t agree to reopen the Belvidere assembly plant according to the timeline established in the union contract.
On the other hand, dealers are irritated because they struggle to sell the automaker’s vehicles. This week’s message to Tavares was at least the second strongly-worded letter that dealers have sent to the CEO in recent months. In a letter sent in May, they raised concerns about high vehicle prices, declining sales, and insufficient incentives.
However, the demands from dealers and unions are different. The UAW union, led by Shawn Fain, calls for Tavares’ dismissal and the arrival of new products to safeguard jobs, such as those at the Warren Truck plant. Dealers, while expressing dissatisfaction, have not called for Tavares’ resignation but for concrete actions such as greater incentives to manage inventory.
During the UAW rally, speakers criticized Stellantis for not safeguarding jobs at Warren Truck, which will end production of the Ram Classic pickup after 17 years. However, the plant will continue to produce Jeep Wagoneer and Grand Wagoneer, with announcements of investments for future electric versions of the SUVs.