The strategic plan of Stellantis is anticipated to be finalized by the end of this week, according to a source who spoke to Reuters on the condition of anonymity. While Tavares typically visits North American operations every four to six weeks, one of the two sources indicated that this particular visit was intended to convey a strong message.
“He wanted to emphasize that he was personally overseeing the situation,” the source revealed to Reuters, noting that the North American division has been crucial in funding the rest of the group. Tavares has acknowledged that the company’s North American business has been grappling with several challenges, including elevated vehicle inventories, manufacturing issues, and a lack of finesse in market management.
These challenges have had a profound effect on Stellantis, leading to a dramatic 50% decline in its share value from its peak in March. When the newswire reached out for comment, a representative from Stellantis chose not to provide any details or insights regarding the ongoing situation.
During his forthcoming trip to the U.S. offices, Tavares will meet with senior managers to discuss and develop a strategy aimed at resolving these pressing issues. Tavares has admitted responsibility for not addressing the North American problems with the necessary speed and effectiveness.
In a presentation of the company’s first-half results, the Stellantis CEO mentioned that he would be spending part of his summer vacation in the United States to tackle these concerns directly. “We were arrogant,” Tavares admitted earlier this year at Stellantis’ investor day held in Michigan.
“I’m referring to myself, not anyone else.” This acknowledgment of fault came shortly after Tavares received a compensation package for the companys’ 2023 performance amounting to up to 36.5 million euros, marking a substantial 56% increase from the previous year.
Stellantis is a global automotive powerhouse formed from the merger of Fiat Chrysler Automobiles and PSA Group. Headquartered in Amsterdam, the company boasts a diverse portfolio of brands including Jeep, Peugeot, Chrysler, Fiat, Citroën, and Dodge. With a strong presence in both North America and Europe, the company is renowned for its innovative approach to vehicle design and technology.
Stellantis is committed to advancing sustainable mobility through electrification and cutting-edge technology. It operates over 400 manufacturing plants and employs thousands worldwide, making it one of the largest automotive manufacturers globally. The company focuses on enhancing customer experiences and driving industry transformation through strategic growth and efficiency initiatives.
