Leaders of Stellantis NV's U.S. dealer network delivered a direct and blunt message by phone Thursday to CEO Carlos Tavares and other top executives: We need bigger and better incentives to clear vehicles off our lots, and we need them fast.

"We had a good exchange of information," said Kevin Farrish, chairman of the National Dealer Council. "We agreed to keep the lines of communication as open as we possibly can. And clearly the dealer body is not going to be bashful, because we can't be."

The automaker's dealers have expressed frustration over what they say is a mismatched product mix with excessively high price tags that's leaving trucks and SUVs piled up on their lots, and they're not the only disgruntled group among key Stellantis constituencies. The United Auto Workers has lambasted the company over plans to delay reopening an Illinois assembly plant and lay off up to 2,400 workers next month at the Warren Truck Assembly Plant; more than 100 workers gathered nearby Thursday at a rally where union President Shawn Fain called Tavares "a terrible CEO."

Shareholders may not be far behind: Stellantis stock has lost more than 35% of its value this year, erasing billions in valuation.

The dealer call, which ran more than an hour, followed a scathing open letter sent by the dealer leaders to Tavares earlier this week. It said that "reckless short-term decision-making to secure record profits in 2023" has resulted in devastating results such as "degradation" of brands like Jeep, Dodge, Ram and Chrysler, and a dealer body that is suffering financially.

The letter prompted a scolding from the automaker, which said such dialogue and problem-solving should be kept private. It added that it had introduced an action plan with the dealers that was recently getting results — including August sales up 21% over a month earlier, increasing market share, and a substantial reduction in dealer inventory.

Stellantis on Thursday confirmed the meeting between its CEO and the dealer council. A statement sent by spokesperson Rick Deneau said dealer concerns including profitability and "the need to work together and build upon our sales successes in the past month, were discussed openly." The statement added the meeting was cordial, and attendees left it "aligned and determined to solve our issues, together."

The UAW, meanwhile, has sharpened its rhetoric against Stellantis in recent weeks, threatening to strike as soon as next month if the automaker doesn't agree to reopen the Belvidere Assembly Plant according to timelines set in the union's contract.

"This is one enemy right here — it's corporate greed, and it's a terrible CEO that has no business running this company," Fain told the crowd Thursday at the offices of UAW Local 140, which represents workers at Warren Truck.

While the union hammers the company over job cuts and contractual commitments, the dealers are ticked off as they struggle to sell the automaker's vehicles. This week's message to Tavares was at least the second sharply worded letter the dealers have sent to the CEO in recent months. In a May letter, they made some of the same points, stating concerns about high vehicle prices, falling sales, issues with vehicle lineups, and insufficient incentives.

In this week's letter, the dealers said they had been "sounding this alarm" to Stellantis executives for more than two years, but felt they haven't been heard.

"We did not create this problem, the federal government did not create this problem, the UAW did not create this problem, and your employees did not create this problem — you created this problem," the letter to Tavares said. "This problem is only getting more expensive and worse with time, so we urge you to stop delaying, and do the right thing now. It is time to turn production back on and start selling our way back to a respectable market share."

Thursday's phone call included Farrish and three other dealer leaders who had signed the letter, as well as Tavares; Carlos Zarlenga, the chief operating officer in North America; Matt Thompson, who leads retail sales in North America, and Bill Peffer, the newly appointed head of North American dealer network development.

"We're looking to see if they're going to have incentive actions that will help the dealer body increase sales," said Farrish, who added it's key that dealers see those actions take place by late September or early October.

Not only are the dealers calling for larger incentives to help move cars that are often sitting on dealer lots for months, but they want to shift away from a current incentive system that has provided dealers financial assistance for ordering certain types of vehicles.

Dealers who order those cars can get special coupons often worth $500 to $1,000 from the automaker, Farrish said, which can be used to discount certain other vehicles on the lot. The dealer network is asking for a more traditional and aggressive incentive program to help sell cars more quickly, he said, as well as more marketing efforts.

"They gave us a commitment that they're going to move in that direction. Now we're in a waiting game to se if they're going to uphold that," Farrish said. He added that "there's talk, and then there's action."

A glut of vehicle inventory has been a central issue for dealers and the company, which has in several instances paused factories in recent months. Through August, days' supply average for Stellantis brands was nearly 80% higher than the national average, according to Cox Automotive data.

The average transaction prices of Dodge, Chrysler, Ram and Jeep vehicles also remained above the national average through August, according to Cox. And those average prices have increased by between 15% and more than 25% for all four brands since early 2021.

Erin Keating, an executive analyst at Cox, noted in an email that Stellantis brands are still "trending lower on incentives," even as Dodge and Chrysler continue to try and sell down large amounts of prior model-year vehicles. She said more incentives appear to be needed along with a reevaluation of the product mix "to match their consumers' tastes and wallets."

While the dealers and the union are both sharply criticizing Tavares, it appears they are seeking different outcomes. Fain and other union officials have made clear they want the CEO pushed out, as they seek to save jobs by attracting new product that can be built at plants like Warren Truck. But the dealers, in the letter, stopped short of calling for his ouster. They said they "do not want an apology or your resignation," but rather for Tavares to "do the right thing: write the check, pay your bill, and let's move forward."

At the UAW rally, multiple speakers criticized the company and said it needed to help keep Warren Truck workers on the job, instead of laying them off early next month after the Ram Classic pickup is discontinued. The plant will continue making the Jeep Wagoneer and Grand Wagoneer, and Stellantis announced investments in the plant this week to soon build electrified versions of those SUVs.

But the high-end vehicles don't sell in sufficient quantities to justify having a second shift. That's why union leaders said they continue to hold out hope they can secure a different product at the plant to take the place of the Ram Classic.

The company does not comment on future product allocation, Stellantis spokesperson Jodi Tinson said.

"As our industry continues to face unrelenting change, Stellantis has set forth on an ambitious path to lead the way as we transform into a sustainable mobility tech company," she said in a statement. "With our commitment to executing a multi-energy strategy, we must continue to adapt by streamlining operations and finding efficiencies that will enhance our competitiveness and ensure our future sustainability and growth."

The company has said the layoffs, to begin as early as Oct. 8, could affect as many as 2,400 workers, though likely less. The local union estimates it will impact roughly 1,600.

In the crowd at Thursday's rally was Gena Johnson, 60, who has worked in production at Warren Truck for five years. She said she got the news about the pending layoff at her factory about a week after she had finalized the purchase of a new home in Redford — an investment that seemed smart after the union secured a lucrative new contract, with significant raises and other benefits, with Stellantis last year.

"Then to get hit with something like this?" Johnson said. "What am I going to do?"

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