Stellantis has successfully met its goal of reducing US vehicle inventories by more than 100,000 units by the end of 2024, Reuters reported.

Antonio Filosa, the North American head of the car manufacturer, shared this success during the Detroit Auto Show.

The move was part of a broader initiative to address challenges in the region, including declining sales and growing concerns about strategic direction under previous leadership.

That goal was reached late last year as part of the company’s efforts to revitalize its North American operations after the unexpected departure of former general manager Carlos Tavares.

Filosa, who took the reins of Stellantis’ US operations in October 2024, stressed the importance of reducing bloated inventories in dealer lots, which had contributed to the company’s sluggish sales.

To achieve this, Stellantis implemented substantial discounts to consumers, a measure that came at a considerable cost but was deemed necessary to balance supply with demand.

“This cost us a lot, but it was necessary,” Filosa acknowledged.

The company had publicly set a goal in September to reduce dealer inventory to no more than 330,000 vehicles by the end of the year.

Tavares’ departure on December 1, 2024, well ahead of the expiration of his contract, had raised concerns among suppliers, car dealers, shareholders and the board about the automaker’s strategy in North America .

Stellantis is currently being overseen by an interim executive committee headed by board chairman John Elkann until a new CEO is appointed.

With brands like Jeep and Ram under its portfolio in the United States and Fiat and Peugeot in Europe, the company is navigating a period of transition.

Filosa emphasized the need for the next leader to be adaptable to meet challenges such as unpredictable demand for electric vehicles (EVs) and major technological hurdles.

He also noted that automakers need to be ready to adapt to changing consumer preferences with versatile platforms capable of producing electric vehicles, hybrids and traditional fuel vehicles.

In addition, Stellantis, along with other U.S. automakers, may face further hurdles if U.S. President-elect Donald Trump follows through on his threats to impose a 25 percent tariff on imports of Mexico and Canada, where Stellantis manufactures some of its popular Jeep and Ram models. models, the insider added.

“Stellantis Meets US Vehicle Inventory Reduction Target – Report” was originally created and published by Automatic onlya trademark owned by GlobalData.

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