Stellantis Boss Visits Detroit To Turn Around Their North American Business

The big boss of Stellantis Carlos Tavares is in the U.S. and is looking to develop a strategy that will turn around the firm’s North American operations.

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In the first half of the year, the carmaker’s adjusted operating income slipped 40% to €8.46 billion ($9.28 billion) and its shares have tumbled almost 50% over the past five months. Tavares has described the brand’s H1 results as “humbling” and noted that its North American business has suffered with high vehicle inventories and manufacturing issues.

Read: Stellantis Profits Crash In 2024, Some Brands Could Be Axed, CEO Warns

Tavares typically visits the North American operations every four to six weeks but is making this current trip during his summer break. According to an unnamed source who spoke to Reuters, the CEO wants to make it clear that he is “handling it personally,” noting that the “North American operations are basically funding the rest of the group.”

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Throughout his trip, Tavares will meet with top-line managers, and dealers, and visit a factory in Detroit. He is expected to formulate a strategy by the end of the week and may look to reduce inventories and adjust vehicle production.

Jefferies analyst Philippe Houchois believes Stellantis’ North American business was badly affected by its decision to increase prices despite consumers not being ready to pay for them. “They have lacked pragmatism to address straight away the inventories building, they should have made more tactical prices to avoid that,” Houchois said.

Tavares blamed himself for not acting quickly enough to address issues with the brand’s North American operations while speaking at its investor day in Michigan earlier in the year. “We were arrogant,” he said. “I’m talking about myself, nobody else.”

Stellantis has already moved to cut 2,450 jobs from its Warren Truck assembly plant near Detroit and will also offer a round of voluntary buyouts to U.S. salaried employees. Tavares has also said two of the company’s local plants have inefficiencies that must be addressed.

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