Tensions are rising between Stellantis and its dealers, who are echoing recent concerns from the United Auto Workers (UAW) over Stellantis CEO Carlos Tavares' management, particularly his handling of high inventory levels, job cuts and a failure to reopen a major Illinois factory, which was promised during previous negotiations.
“We’ve never seen this before,” Ralph Mahalak Jr., a dealership owner in Florida, Michigan and Ohio told Automotive News. “We don’t understand what’s going on. And how did we get in this predicament?”
Dealers are calling for increased incentive programs to help reduce their surplus inventory, a point brought up in two letters sent by the Stellantis National Dealer Council to Tavares since May.
Mahalak said high interest rates combined with Stellantis’ attempts to transition to EVs have worsened business conditions.
“I’ve never felt less in control of my business than I do today. I felt more in control during the financial crisis and the microchip shortage,” Mahalak said.
The UAW has also taken a strong stance, accusing Stellantis of mismanagement and contract violations regarding the reopening of its Belvidere, IL, plant. In an address Sept. 17, UAW President Shawn Fain announced plans to conduct strike authorization votes among local union representatives.
On Sept. 23, the automaker confirmed to Bloomberg it has begun searching for a successor to Tavares, whose contract is good until early 2026.
Stellantis also confirmed its intention to decrease its North American vehicle inventories by 100,000 units by 2025, responding to rising inventories that have led to widespread dealer concerns and union unrest. Stellantis CFO Natalie Knight said at a recent BofA Securities conference the company had successfully reduced about 40,000 inventory units in July and August alone.
Stellantis Chairman John Elkann clarified there are no immediate plans to replace Tavares, who will participate in selecting his successor.
