On February 20, Stellantis CEO Carlos Tavares recently spoke to reporters about the company’s performance and plans for improvement. He acknowledged areas where Stellantis could have done better in 2023 and outlined his plans to correct those issues in 2024.
Stellantis, which sells the Dodge, Chrysler, Jeep, Ram, and Fiat brands, reported a net revenue of $92.8 billion in North America for 2023, up 1% for the year but down for the second half. However, Tavares is optimistic about the U.S. market because of the large profit margins, saying that if the manufacturer “stays focused,” sales can increase.
Tavares stated that one area he wants to enhance is market communications.
“We are trying to move money from low-return activities to high-return activities,” Tavares stated with sadness. “So we are not cutting the total amounts; we are just saying some media or marketing events have lower returns than others.”
In light of this, Tavares stated that Stellantis will enhance its marketing strategy, although he did not provide any details. He itemized further areas where the business could improve:
“The production planning can be better than what we did,” he stated. “The quality of the relationship with our dealers could be better, and we’re working on that, and we are bringing in new products to the U.S. market, so that’s a lot of things that should be aligned to make a better performance in the U.S.”
Moreover, Tavares announced that Stellantis plans to launch eight battery-electric cars in the U.S. market this year and that the company’s “EV offensive” is just beginning. He then acknowledged that the distribution of cars has been a challenge for Stellantis and emphasized the need to reduce costs and increase competitiveness, particularly with EVs.
According to Tavares, “The work that needs to be done by the North American team is still extremely difficult.” He added, “If you look at our financials, North America had really good margins, at 15.4%. I ought to commend them and express my gratitude for their efforts. However, there are strong headwinds, so we must assist them. I see a lot of promise for the US market. With our four brands, we can succeed here; all we need to do is remain committed.”
