After a strong performance in 2023, marked by impressive sales and profits despite global challenges and labor strikes in the U.S., Stellantis is now grappling with difficulties in 2024. The automaker, known for its brands like Jeep, Fiat, Dodge, and Chrysler, has experienced a sharp decline in sales and profits, causing unrest among shareholders who are even contemplating legal action.
The situation has reached a critical point, prompting CEO Carlos Tavares to plan an urgent visit to Detroit to address these issues and attempt to turn things around. The concerns intensified following Stellantis’ recent financial report, which revealed a dramatic 30 percent drop in sales for key brands such as Jeep.
This decline was accompanied by predictions of further profit reductions. Experts are now cautioning that the company’s situation is deteriorating, as highlighted by John McElroy of “Autoline After Hours,” who remarked that the company’s once-promising outlook has soured. McElroy pointed to inventory management problems as a key issue, suggesting that decisions made—potentially in Paris or Auburn Hills—were misguided and contributed to current difficulties.
Adding to the turmoil, Stellantis has seen a wave of executive departures, announced layoffs at various American facilities, and even proposed cutting shifts at its Warren Truck Assembly plant near Detroit. These moves have sparked fears of potential strike actions from the United Auto Workers union, echoing the tensions from last year’s walkout involving Stellantis and other major automakers.
In response to the growing crisis, Tavares is set to make an emergency trip to Detroit. This visit, which deviates from his usual schedule of quarterly visits, underscores his commitment to directly managing the North American operations, which are critical to the company’s overall performance. Tavares has acknowledged the company’s challenges, including high vehicle inventories and operational inefficiencies, and is expected to present a new strategy aimed at stabilizing and rejuvenating Stellantis’ North American branch.