Stellantis achieves goal of reducing US vehicle inventory – report

Stellantis has successfully achieved its goal of reducing US car inventories by more than 100,000 units by the end of 2024, Reuters reported.

Antonio Velosa, the automaker’s North American president, shared the milestone during the Detroit Auto Show.

The move was part of a broader initiative to address challenges facing the region, including declining sales and growing concerns about strategic direction under previous leadership.

This target was reached late last year as part of the company’s efforts to revitalize its North American operations after the crisis Unexpected departure of former CEO Carlos Tavares.

Velosa, who took the reins of Stellantis’ North American operations in October 2024, stressed the importance of reducing bloated inventories at dealers, which were contributing to the company’s sluggish sales.

To achieve this, Stellantis implemented deep discounts to consumers, a move that came at a significant cost but was deemed necessary to balance supply and demand.

“It cost us a lot, but it was necessary,” Velosa admitted.

The company publicly set a goal in September to reduce dealer inventory to no more than 330,000 vehicles by the end of the year.

Tavares’ departure on December 1, 2024, well before his contract expires, has raised concerns among suppliers, auto dealers, shareholders and the board regarding the automaker’s North American strategy.

Currently, Stellantis is overseen by an interim executive committee chaired by Chairman John Elkann until a new CEO is appointed.

With brands such as Jeep and Ram within its portfolio in the United States and Fiat and Peugeot in Europe, the company is going through a transition period.

Velosa stressed the need for the next leader to be able to adapt in the face of challenges such as unexpected demand for electric vehicles (EV) and significant technological hurdles.

He also noted that automakers must be ready to adapt to changing consumer preferences with versatile platforms capable of producing electric, hybrid and conventional fuel-powered vehicles.

In addition, Stellantis, along with other US automakers, may face further hurdles if 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 vehicles. And Ram. The report added that the models.

“Stellantis Achieves U.S. Vehicle Inventory Reduction Goal – Report” was originally created and published by Just automaticwhich is a trademark of GlobalData.

The information on this website has been included in good faith for general informational purposes only. It is not intended to constitute advice on which you should rely, and we make no representation or warranty, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.