The Jeep owner got a scathing review from U.S. auto dealers
Jeep owner Stellantis $STLA (STLA) is in crisis mode right now. It’s been hit with enormous recalls of its top-sellers, has seen profits plummet as sales stagnate and is even facing offers to offload some of its historic brands. Now, the automaker has been hit with a scathing review from U.S. dealers who say that “disaster has arrived” at the automaker.
In a letter addressed to company boss Carlos Tavares, dealers across America lay their disdain clear for all to see, according to a report from Automotive News. Dealers say Stellantis brands are facing “rapid degradation” thanks to “short-term decision making” that has shrunk the company’s market share and hit the Jeep, Ram, Dodge and Chrysler brands. As Automotive News reports:
“For over two years now, the U.S. Stellantis National Dealer Council has been sounding this alarm to your US executive team, warning them that the course you had set for Stellantis was going to be a disaster in the long run,” the group said in the letter. “A disaster not just for us, but for everyone involved — and now that disaster has arrived.”
Stellantis said it took exception to the letter and that it doesn’t believe public personal attacks are the most effective way to solve problems.
The company said it introduced an action plan in August that was developed with dealer input.
The plan, the company says, is already showing results. According to Stellantis, U.S. sales in August were up 21 percent over July, market share was up 0.7 points, and dealer inventory was reduced for two consecutive months by 42,000 units, or approximately 10 percent in total.
This isn’t the first time dealers across America have let Tavares know how they really feel, with dealers sending a letter earlier this year outlining issues they needed addressing. That letter was followed by a meeting with company bosses that led to a summer incentive campaign to support sales and more freedom to order certain models.
Now, dealerships across America are hoping for additional support to offload a swelling inventory and increased marketing to help sell more cars.
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