Stellantis addresses U.S. sales slump after slow start in 2024
- Stellantis is restructuring its management to address declining U.S. sales after a failed marketing strategy.
- The company is facing challenges in the electric vehicle market and aims to reduce its inventory by Christmas.
- Analysts highlight Stellantis's lack of affordable vehicle options, contributing to longer sales times.
In October 2024, Stellantis is addressing its declining U.S. sales after a poorly executed marketing strategy earlier in the year. CEO Carlos Tavares acknowledged his responsibility for the company's challenges and announced a management restructuring, which included the dismissal of key executives. The company is facing significant competition in the electric vehicle market, particularly from Chinese manufacturers, while also dealing with reduced government subsidies in the European Union. Sales in the U.S. have dropped significantly, with the company aiming to reduce its inventory to below 350,000 vehicles by Christmas for a fresh start in the new year. Meanwhile, a union in Italy is planning a strike to protest production cuts and unmet commitments regarding factory investments. Analysts have pointed out that Stellantis lacks affordable vehicle options, which has contributed to longer sales times compared to industry averages. The company is expected to introduce new models in the future, but it may take time to align with market demand.