Stellantis NV CEO Carlos Tavares is set to visit Detroit this week in a bid to revive the company’s struggling North American operations. The automaker has been facing challenges in the region, with profits and sales declining significantly.
Tavares is personally taking charge of developing a strategy to address these issues. According to Reuters, citing sources familiar with the matter, the CEO aims to finalize a plan by the end of the week. The visit signifies the importance of the North American market to Stellantis’ overall success.
During his visit to the company’s U.S. offices in Auburn Hills, Michigan, Tavares will meet with top management to discuss the current situation and formulate a plan for improvement.
Stellantis’ recent performance has been a cause for concern. For the first half of 2024, the company reported a 48% drop in net profit to €5.6 billion ($6.22 billion) and a 14% decline in net revenue to €85 billion. This downturn was primarily attributed to a dip in market share in North America.
Tavares acknowledged the disappointing results during the company’s earnings call last month. He emphasized the need to address operational challenges, especially in North America, to maximize long-term potential. The CEO’s personal involvement in the region highlights the urgency of the situation.
Stellantis’ sales in the U.S. further illustrate the challenges faced in the second quarter. Sales plummeted 21% to 344,993 vehicles compared to the previous year. The visit to Detroit signifies a commitment to address these issues and regain market share in North America.
