Stellantis CEO To Visit Detroit, Devise Strategy To Revive Struggling North American Operations: Report

Stellantis NV STLA CEO Carlos Tavares is reportedly slated to visit Detroit this week in a bid to revive the company’s struggling North American operations.

What Happened: The CEO is looking to develop a strategy to fix the automaker’s operations in North America by the end of this week, Reuters reported, citing people familiar with the matter.

A source told the news agency that the CEO wanted to make it clear with his upcoming visit that he is handling the dwindling operations personally as North American operations are integral to the company’s overall functioning.

During his visit to the U.S. offices in Auburn Hills, Michigan, Tavares will meet with top-line managers before formulating a strategy, the report added.

Stellantis did not immediately respond to Benzinga’s request for comment.

Why It Matters: For the first half of 2024, European automaker Stellantis reported a 48% fall in net profit to €5.6 billion ($6.22 billion) and a 14% fall in net revenue to €85 billion, owing to a dip in market share in North America.

“It is an understatement to say that H1 2024 results were disappointing and humbling,” Tavares said at the company’s earnings call last month.

"The Company's performance in the first half of 2024 fell short of our expectations, reflecting both a challenging industry context as well as our own operational issues… We have significant work to do, especially in North America, to maximize our long-term potential,” he said while also reiterating his personal involvement with the teams in North America to fix the issue.

In the second quarter alone, Stellantis saw its sales in the U.S. fall 21% to 344,993 vehicles.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

Photo courtesy: Stellantis