Stellantis Faces Backlash from UAW and Dealers Over CEO's Strategy

CEO Carlos Tavares criticized for prioritizing short-term profits, leading to sales declines and operational issues.

Stellantis' U.S. dealer network and the United Auto Workers union have criticized CEO Carlos Tavares for recent sales declines and factory production cuts.
In an open letter, the head of Stellantis' U.S. dealer council condemned Tavares for prioritizing profits at the expense of market share and brand reputation.
Stellantis reported a 48% drop in first-half net profit for 2024, with a significant decline in North American market performance.
The company defended its strategy, citing a 21% increase in August sales over July and a reduction in dealer inventory for two consecutive months.
Stellantis announced a $406 million investment in three Michigan facilities, including the production of its first battery-electric pickup truck.