Stellantis CEO Carlos Tavares will visit Detroit this week. Visits by the group’s number one to the United States are not so rare but the decision to travel to North America during the summer is a clear sign from the Portuguese manager. In the States, Tavares will be busy developing a strategy to resolve the difficulties of operations in the local market and reassure employees and investors.
New layoffs
The international news agency Reuters cited an anonymous source within the company to support this thesis. During this week’s visit to the U.S. offices in Auburn Hills, Michigan, Tavares will initially meet with senior executives before formulating a strategy by the end of the week. News of new job cuts, with the dismissal of 2,450 workers from the Warren Truck plant in Detroit, has given a further jolt to the environment, with local unions that are once again on the warpath.
Stellantis’ problems
Some analysts also analyzed the situation, also in light of the disappointing financial results: “Stellantis’s main mistake in North America was to continue to raise prices in an attempt to increase margins even as the market signaled that customers were not ready to pay, making some Stellantis models too expensive,” said Jefferies Philippe Houchois. “They lacked the pragmatism to address the inventory buildup right away, they should have been more tactical in pricing to avoid it.”
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