In recent days, Stellantis CEO Carlos Tavares flew to the United States to address the crisis his group is experiencing in the market, especially in 2024. In the United States, the company’s sales continue to decline month after month due to a strategy of high prices and too many unsold cars. In the past few hours, Stellantis Chairman John Elkann has also joined Carlos Tavares in the United States to lend support.
John Elkann joins Tavares in the United States following Stellantis’ difficulties in the North American market
Although the task of revising the group’s strategy for the American market falls to the CEO, Elkann is present to fulfill an institutional and representative role during this critical moment. The American market, historically very profitable, is facing a crisis due to inventory accumulation and declining sales, which recorded a decline of 18 percent in the first half of 2024. This has led to a 40 percent reduction in operating profit and a stock market crash exceeding 40 percent compared to the highs reached in March.
Obviously, this situation is creating a moment of high tension. During Carlos Tavares’ visit to Detroit, about 200 members of the United Auto Workers (UAW) union gathered outside the Sterling Heights plant, ready to demand answers. However, the CEO did not show up, instead remaining in the offices with John Elkann, fueling the union’s anger.
The UAW union is now threatening a national strike, a prospect that, ironically, could benefit the Stellantis group, allowing it to reduce excess inventory without further negative impacts on sales. Moreover, the issue of reopening the Belvidere plant is also becoming complicated.
Additionally, the UAW union has called for Carlos Tavares’ resignation, as they believe he is not managing the group effectively. It seems that this situation will lead to a confrontation one way or another, and a situation similar to that of last year could develop, when thousands of employees went on strike for several weeks.