HomeBusinessStellantis Achieves Goal of Reducing US Vehicle Inventory – Report

Stellantis Achieves Goal of Reducing US Vehicle Inventory – Report

Stellantis has successfully achieved its goal of reducing U.S. vehicle inventories by more than 100,000 units by the end of 2024, Reuters reported.

Antonio Filosa, the automaker’s North American chief, shared this achievement at the Detroit Auto Show.

The move was part of a broader initiative to address the region’s challenges, including declining sales and growing concerns about the strategic direction under former leadership.

This target was achieved late last year as part of the company’s efforts to revitalize its North American operations following the unexpected departure of former CEO Carlos Tavares.

Filosa, who took control of Stellantis’ North American operations in October 2024, emphasized the importance of reducing bloated inventory at dealer lots, which had contributed to the company’s sluggish sales.

To achieve this, Stellantis introduced significant consumer discounts, a move that came at a significant cost but was deemed necessary to balance supply and demand.

See also  Virginia Bank prescribes cannabis to close the income gap

“That cost us a lot, but it was necessary,” Filosa acknowledged.

The company publicly set a goal in September to reduce dealer inventory to no more than 330,000 vehicles by the end of the year.

Tavares’ departure on December 1, 2024, well before his contract expired, had raised concerns among suppliers, car dealers, shareholders and the board about the automaker’s strategy in North America.

Currently, Stellantis is overseen by an interim executive committee led by Chairman John Elkann until a new CEO is appointed.

With brands like Jeep and Ram under its U.S. portfolio and Fiat and Peugeot in Europe, the company is navigating a period of transition.

Filosa emphasized the need for the next leader to be able to adapt to challenges such as unpredictable demand for electric vehicles (EV) and significant technological hurdles.

See also  Sorry, crazy men. The advertising revolution is here.

He also noted that automakers must be prepared to adapt to changing consumer preferences with versatile platforms that can produce electric vehicles, hybrids and traditional fuel-powered vehicles.

Furthermore, Stellantis, along with other US automakers, could face even more obstacles if newly elected US President Donald Trump makes good on his threats to impose a 25% import tariff on products from Mexico and Canada, where Stellantis has a number of of its popular Jeeps and Rams. models, the reported added.

“Stellantis Achieves U.S. Vehicle Inventory Reduction Target – Report” was originally created and published by Just Auto, a brand owned by GlobalData.


The information on this site has been included in good faith for general information purposes only. It is not intended to amount to advice on which reliance should be placed and we make no representation, warranty or guarantee, express or implied, as to its accuracy or completeness. You must obtain professional or specialist advice before taking or refraining from any action on the basis of the content on our site.

See also  Marathon, Teamsters reach pay deal at Detroit refinery

- Advertisement -
RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments