Stellantis has succeeded in achieving its goal of reducing US vehicle inventories by more than 100,000 units by the end of 2024, Reuters reported.
Antonio Filosa, the automaker's North American boss, shared this achievement during the Detroit Auto Show.
The move was part of a wider initiative to address the region's challenges, including declining sales and growing concerns about strategic direction under previous leadership.
This target was reached late last year as part of the company's efforts to revive its operations in North America following the the unexpected departure of former CEO Carlos Tavares.
Filosa, who took over Stellantis' North American operations in October 2024, emphasized the importance of cutting bloated inventories in dealer lots, which had been contributing to the company's sluggish sales.
To achieve this, Stellantis implemented significant discounts for consumers, a move that came at a significant cost but was considered necessary to balance supply with demand.
“That cost us a lot, but it was needed,” Filosa acknowledged.
The company had publicly set a target 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 was up, had raised concerns among suppliers, car dealers, shareholders, and the board about the automaker's strategy in North America.
At present, Stellantis is overseen by an interim executive committee led by chairman of the board John Elkann until a new CEO is appointed.
With brands such as Jeep and Ram under its portfolio in the US and Fiat and Peugeot in Europe, the company is navigating through a period of transition.
Filosa emphasized the need for the next leader to be flexible when facing challenges such as unpredictable demand for electric vehicles (EV) and significant technological barriers.
He also noted that automakers must be ready to adapt to changing consumer preferences with versatile platforms capable of producing EVs, hybrids, and traditional fuel vehicles.
In addition, Stellantis, along with other US carmakers, may face further obstacles if US President-elect Donald Trump follows through on his threats to impose a 25% tariff on imports from Mexico and Canada, where Stellantis produces some of its popular Jeep and Ram. models, added the reported.
“Stellantis” was originally created and published by Only Autobrand owned by GlobalData.
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