Sept 11 (Askume) – Automaker Stellantis (STLAM.MI) told its U.S. dealers on Wednesday that its sales in August were up 21% from July and its dealer inventories rose by nearly 10% for a second consecutive month.
Citing an open letter dated Sept. 10, Bloomberg News reported that Strantis, president of the National Dealer Council, criticized CEO Carlos Tavares for the “rapid erosion” of the automaker’s brand and urged him to clear out old inventory and spend the money.
The report said retailers accused the major last year of making “short-term decisions” to boost profits and raise salaries, which they claimed eroded their market share.
The automaker also said its market share increased by 0.7 percentage points in August compared to the previous month and added that it does not believe that “public personal attacks, such as those included in the NDC chairman’s open letter against our CEO, are the most effective approach to address the problem.”
The dealer could not be reached for comment and its president, Kevin Farish, did not immediately respond to a Askume request for comment.
Tavares called Stellantis’ first-half results “disappointing,” saying the French-Italian automaker’s North American operations were hampered by high vehicle inventories, manufacturing issues and a lack of “maturity” in dealing with the local market.
In August, Askume reported that Tavares visited the United States to reassure employees and investors and met with dealers in the Detroit area to discuss issues such as reducing inventory and adjusting vehicle production.
Stellantis’ operating income fell 40% in the first half of the year, mainly due to the poor performance of its profit-rich North American business. Car sales at Ram and Jeep, the top brands in the region, fell at least 33% compared with the first half of 2019, according to research firm Cox Automotive.
