Stellantis CEO Carlos Tavares is set to visit Detroit this week to craft a new plan aimed at boosting the company’s struggling North American operations, according to a source familiar with the matter. This visit comes as Tavares seeks to address concerns from both investors and employees, Reuters reported.
A new strategy is expected to be finalized by the end of the week, the source told Reuters, speaking on condition of anonymity. Although Tavares typically visits North American operations every four to six weeks, this visit is intended to underscore his personal commitment to resolving the issues.
“He wanted to make it clear that he was handling it personally,” the source said, noting that the North American division has been crucial in funding the rest of the company.
Tavares has acknowledged several challenges facing Stellantis in North America, including high vehicle inventories, manufacturing difficulties, and a lack of precision in market execution. The company’s shares have dropped 50% since their peak in March, partly due to these ongoing issues.
During his U.S. visit, Tavares is expected to meet with senior managers before finalizing the new strategy by the end of the week. He has admitted to not addressing the problems in North America with enough urgency, saying earlier this year at an investor day in Michigan, “We were arrogant. I’m talking about myself, nobody else.”
Tavares also mentioned that he would spend part of his summer in the U.S. to focus on these challenges. This visit follows closely after he received a compensation package based on Stellantis’ 2023 results, amounting to up to 36.5 million euros, a 56% increase from the previous year, Reuters reported.
