In one of our articles last September, we talked about Stellantis’ goal of succeeding in lowering its inventory by at least 100,000 units. In particular, we talked about the automaker’s priority of improving its position in the North American market in the coming years.
Stellantis inventory decrease goal met
The goal, Knight had explained on that occasion, was to put North America on a more solid and sustainable trajectory for the future, particularly by 2025. Stellantis was therefore aiming to reduce its inventory in North America by 100,000 units by the beginning of the year 2025. According to CFO Natalie Knight , the company had already reduced its inventory by about 45,000 vehicles by July and August 2024, Now, however, the goal has been fully achieved thanks to a series of targeted business activities.
Stellantis, as anticipated, undertook a massive business operation to reduce the number of unsold cars in its warehouses in the United States. This effort has resulted in a decrease of more than 100,000 vehicles, bringing the company rather conclusively closer to its goal of having fewer than 330,000 cars in inventory by the end of the year. Antonio Filosa, the new head of Stellantis’s North American operations, explained in no uncertain terms that to achieve this goal it was necessary to make a series of significant discounts available to consumers, a decision that was quite costly but deemed essential to stabilize the company’s situation.
Achievement achieved at a difficult time for Stellantis
These changes came at a very difficult time for Stellantis. In fact, things took a turn for the worse after the departure of former CEO Carlos Tavares, which occurred a full 18 months before his contract expired, something that definitely surprised the industry worldwide. The reasons for this decision seem to be related to shareholder concerns about the strategy adopted by Tavares for the North American market and his pricing policies, which led to a rather excessive amount of unsold cars, obviously generated by declining sales.
Pending the appointment of a new CEO, board chairman John Elkann has taken interim leadership of the company. Filosa, drawing on his experience and track record to date, appears to be considered one of the leading candidates to succeed Tavares. According to Filosa, the next leader of Stellantis will have to demonstrate a strong ability to adapt within an ever-changing automotive market. Flexibility in production, technological innovation, and a great ability to respond to any changes in trade policies internationally could all be key to the company’s future success.