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Stellantis (NYSE:STLA) CEO Carlos Tavares plans to visit Detroit, U.S., this week to develop a strategy to address declining profits and challenges faced in the region, according to a Reuters report that cites a person familiar with the plans.
“He wanted to make clear he was handling it personally. North American operations are basically funding the rest of the group.” the source said, as per the report.
Tavares will first meet with top-line managers during his visit to the U.S. offices in Auburn Hills, Michigan, before coming up with a plan by the end of the week to address the situation, the source added.
The automaker’s North American business is reportedly hurt by higher level of inventories, production issues, and a lack of ‘sophistication’.
The maker of Jeep saw weaker sales in its recent earnings report and has been cutting jobs in the U.S.
“I am personally involved with our North American teams to fix it. We believe we understood what happened, and I will explain that to you. And if we understand well what the problem is, then 50% of the journey is done to fix it and this is what we are now preparing for. Last but not least we still have ahead of us a lot of cost saving actions.” Tavares said while presenting Q2 results.
Separately, Stellantis (STLA) also announced delays in its planned investments at the Belvidere Assembly Plant in Illinois, part of a broader commitment to enhance its manufacturing capabilities in the U.S.
United Auto Workers President Shawn Fain recently slammed CEO Carlos Tavares for alleged price gouging and trying to go back on commitments.
