Stellantis has successfully met 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 chief, shared this accomplishment during the Detroit Auto Show.
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This move was part of a broader initiative to address the region’s challenges, including declining sales and mounting concerns over strategic direction under previous leadership.
This target was reached late last year as part of the company’s efforts to revitalise its North American operations following the unexpected departure of former CEO Carlos Tavares.
Filosa, who took the reins of Stellantis’ North American operations in October 2024, emphasised the importance of cutting bloated inventories at dealer lots, which had been contributing to the company’s sluggish sales.
To achieve this, Stellantis implemented substantial consumer discounts, a move that came at a considerable cost but was deemed necessary to balance supply with demand.
“That cost us a lot, but 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.
The departure of Tavares on 1 December 2024, well ahead of his contract’s expiration, had raised concerns among suppliers, auto dealers, shareholders, and the board regarding the automaker’s strategy in North America.
Currently, Stellantis is being overseen by an interim executive committee headed by board chairman John Elkann until a new CEO is appointed.
With brands like Jeep and Ram under its US portfolio and Fiat and Peugeot in Europe, the company is navigating through a period of transition.
Filosa emphasised the need for the next leader to be adaptable in facing challenges such as unpredictable electric vehicle (EV) demand and significant technological hurdles.
He also noted that automakers must be prepared to adjust to changing consumer preferences with versatile platforms capable of producing EVs, hybrids, and traditional fuel-powered vehicles.
Additionally, Stellantis, along with other US automakers, may confront further obstacles if the US President-elect Donald Trump follows through on his threats to impose a 25% tariff on imports from Mexico and Canada, where Stellantis manufactures some of its popular Jeep and Ram models, the reported added.
