Stellantis reaches goal of cutting US inventory by 100,000 units

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Finance

Posted By Reuters

Posted on January 11, 2025

Stellantis reaches goal of cutting US inventory by 100,000 units

By Nora Eckert and Kalea Hall

DETROIT (Reuters) -Automaker Stellantis achieved its goal of cutting U.S. inventories by more than 100,000 vehicles late last year, its North American chief said on Friday at the Detroit Auto Show.

Antonio Filosa, who has led the carmaker's North American operations since last October, detailed efforts to turn around a slumping regional business in the wake of former CEO Carlos Tavares' abrupt departure.

He said the company had made a "very big improvement" in working down bloated inventories on dealer lots by offering huge discounts to consumers. "That cost us a lot, but was needed," he added.

In September, Stellantis publicly targeted dealer inventory of no more than 330,000 vehicles by year end.

Tavares resigned on Dec. 1, almost 18 months before his contract was set to end, amid growing concern from suppliers, auto dealers, shareholders and the automaker's board about its North American strategy.

Until the board picks a new CEO, an interim executive committee led by board Chairman John Elkann is running the automaker, which has 14 brands including Jeep and Ram in the United States and Fiat and Peugeot in Europe.

Filosa is seen as a leading candidate to become the next CEO.

Tavares' aggressive pricing strategy contributed to rising inventories and plummeting sales in North America, traditionally the automaker's profit powerhouse.

Filosa said the next CEO will have to be nimble to address a variety of challenges, including uncertain EV demand and steep technological challenges. Automakers could be flexible in responding to shifting consumer demand with platforms to produce EVs, hybrids and fuel-powered vehicles, he said.

Stellantis and other U.S. automakers could face serious new challenges if U.S. President-elect Donald Trump makes good on threats to impose 25% tariffs on imports from Mexico and Canada. The carmaker produces some of its popular Jeep and Ram vehicles in Mexico and imports them into the United States.

(Reporting by Nora Eckert; Editing by Bill Berkrot)

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