Written by Cláudio Afonso | LinkedIn | X
Stellantis held on Thursday its investor day at its North American headquarters where the chief executive Carlos Tavares and his leadership team updated investors on the company’s operations and strategic plans.
Tavares said Stellantis did “arrogant” mistakes in its U.S. division that led to declining sales, inflated inventories, and investor concerns as the company aims to meet ambitious financial targets despite economic and industry uncertainties.
The CEO identified three primary issues: a failure to reduce vehicle inventory promptly, manufacturing challenges at two undisclosed plants, and an unsophisticated market approach. He emphasized that he should have immediately formed a task force to tackle these problems, acknowledging his own accountability.
While Tavares did not detail the manufacturing or market approach issues, Stellantis has reaffirmed the 2024 guidance and committed to returning capital to shareholders.
The company defined target liquidity levels of 25-30 percent of revenues for the medium-term, “shifting focus to capital efficiency and supporting strong shareholder returns” adding that it will continue to “use share buybacks and ordinary dividends to return excess cash to shareholders”.
Tavares has recently said that a price battle with Asian EV makers would be “very tough” as Chinese manufacturers are on track to reach a market share of 10 percent in Europe.
At Reuters ‘Automotive Europe event, the group’s chief executive said the European governments don’t want to face a reality right now following the recent 400 percent hike from the US on China-made electric vehicles.
In the European market, Stellantis anticipates a major battle with competitors from China warning for a possible “overcapacity”.
“If we let the share of the Chinese OEMs grow … then it’s obvious that you are going to create an overcapacity, unless you fight against that competition,” he said.
Written by Cláudio Afonso | LinkedIn | X
