Stellantis (STLAM.MI), the world's fourth-largest automaker, is undergoing significant management changes due to mounting challenges. CEO Carlos Tavares plans a deep restructuring of the management team after the company issued a profit warning.
Facing considerable pressure, Tavares aims to revamp Stellantis's North American operations. The company's stock has declined significantly as sales and profits have plummeted. Intense market competition has led to weak global demand and excess inventory, with these issues being particularly acute in the U.S. market. The slowdown in demand has forced Stellantis to cut prices on some high-profit Jeep models and pickup trucks.
Last week, Stellantis lowered its 2024 profit forecast, warning it will consume more cash than expected. To revive its U.S. business, the company has pledged to reduce production and offer substantial discounts. Tavares's future may be discussed in an upcoming two-day board meeting.
