Stellantis’ situation in America is not the best. After the UAW clashes and the bad ranking er the group’s American brands there is an urgent need for a big change. In fact, the situation of the Stellantis group in the U.S. market is very complex and needs new strategies and new reorganization in order to rise up and succeed in jumping out of it.
The Stellantis situation in America
Auto giant Stellantis recently made a strong decision to try to significantly shake up its U.S. plants, which during the course of the past year have been going through a very difficult period. The decision was made to try to significantly reset the fortunes of historic American brands such as Jeep and Ram. Not only these two brands, but also widely known global brands such as Chrysler and Dodge have been hit by significant losses. Moreover, these American manufacturers, have even been ranked as the least reliable cars on the current international market. This is one of the most important reasons why the company has put all its eggs in one person who is new but already has a great deal of established experience in the field of electric vehicles.
This decision comes in the wake of a period with major issues for the company to manage, which not only concerns the decline of the brands we have mentioned, but also from ongoing clashes with unions such as UAW, which as a result of major problems affecting the Belvidere plant, has even threatened a national strike that could take place in October. The situation has reached really major levels of precariousness, so much so that the UAW has even called for the official resignation by Stellantis Ceo Carlos Tavares, with accusations that he is unable to manage the situation as best he can.
Appointment of Tim Fallon raises hopes for a revival for Stellantis in the U.S.
Tim Fallon, has served for years as an executive at Nissan and more recently at Rivian, is currently being asked to lead all Stellantis factories in the United States. His appointment took place on August 20 and represents a very important step for a company that is going through turbulent times but is nevertheless continuing to invest substantially in the transition to electric mobility.
Fallon’s choice, in fact, is by no means accidental. The manager brings more than 16 years of experience at Nissan to his baggage and has gained detailed knowledge of the U.S. market over time. Rivian is a company with an extensive history in the field of electric vehicles, in which Tim Fallon has held a similar role, managing the entire process of producing electric SUVs, vans and pickups. This is absolutely invaluable experience for the Stellantis group, especially since it comes at a time when demand for electric vehicles although always growing, is experiencing some slowdowns.
Stellantis plants in the U.S.
Fallon certainly inherited a complex situation. Stellantis plants in the U.S. are in dire need of a major renovation to be able to adapt to electric vehicle production. At the same time, the company has to cope with a demand that, both in the U.S. and Europe, has dropped significantly from initial forecasts.
Fallon’s experience at Rivian, although it comes at a rather relevant time, has not come at a time when top management is thinking in an exclusively positive light. In fact, the automaker, despite its initial promises and great support from investors such as Amazon, has nonetheless seen its stock price drop quite steeply. Precisely because of this, it had to implement several staff cuts caused by problems in the supply chain and lower-than-expected demand. A very eventful period for Stellantis, for which we will just have to wait the weeks following September 2 for a possible general recovery.