Stellantis dealers in the United States welcomed the resignation of CEO Carlos Tavares, which occurred at the end of last week. This year, Chrysler, Dodge, Jeep, and Ram brand dealers have had to deal with issues related to expensive and outdated vehicles in their lots, often without receiving necessary support from Tavares or other executives.
Stellantis: Tavares’ departure makes dealers happy in the United States
“A change was needed,” said Kevin Farrish, owner of a Stellantis dealership in Virginia and president of the National Dealer Council. “The board took action, accepting his resignation, and has a plan in place.”
Farrish added that many of the dealers he spoke with after the announcement of Tavares’ resignation were “optimistic about the change.” The approximately 2,600 Stellantis dealers in the United States have been in open disagreement with Tavares and other company representatives throughout much of the year, while the brands saw declining market share and increasing unsold vehicles. Some reported having difficulty maintaining their businesses.
Dealers have stated that sales are increasing in the fourth quarter thanks to better incentives. Stellantis has also reduced prices for 2025 models. But there was underlying frustration that North American course corrections under Tavares hadn’t occurred earlier, when dealers had been raising concerns for months.
Matt Thompson, head of retail sales in the United States for Stellantis, stated that the automaker’s inventory levels have been reduced ahead of schedule, “exceeding our previously communicated target of 100,000 units.” The U.S. brands are showing “strong sales momentum,” he added. The automaker is also adjusting its national and tier-two advertising spending in an attempt to increase awareness for both new 2025 products and the current series of incentives. Dealers said they had recently requested such increases in marketing spending.
The dealers’ statement this week stands in stark contrast to a sharp open letter they had sent to Tavares in September, warning that there was “a disaster coming” for them, amid falling sales and business mistakes. This was, moreover, the second letter that dealers had sent to Tavares this year expressing criticism and concerns.