Stellantis, the world’s fourth-largest automaker, has been facing some challenges in the U.S. market, where its sales and market share have been declining. However, the company’s CEO, Carlos Tavares, is confident that he can turn things around in 2024, by improving various aspects of the business, such as production planning, dealer relations, marketing strategy, and product portfolio. Tavares also shared his vision for the future of Stellantis, which includes launching new electric vehicles, expanding in emerging markets, and enhancing its competitiveness and profitability. Here are the highlights of Tavares’ vision and goals for 2024.
Improving the U.S. Market Performance
The U.S. market is one of the most important and profitable markets for Stellantis, which sells brands such as Dodge, Chrysler, Jeep, Ram, and Fiat. However, the company has been struggling to maintain its position and performance in the U.S., where its sales dropped by 13% in 2023, and its market share fell to 10.6%, the lowest since 2011. Tavares acknowledged that Stellantis could have done better in the U.S., and outlined his plans to correct those issues in 2024.
One of the areas that Tavares wants to improve is the production planning, which he said could be better than what they did in 2023. He said that the company needs to optimize its production capacity and inventory levels, to meet the demand and avoid shortages or surpluses. He also said that the company needs to balance its product mix, to offer more SUVs and trucks, which are more popular and profitable in the U.S., and to reduce its dependence on sedans and minivans, which are losing market share.
Another area that Tavares wants to improve is the quality of the relationship with the dealers, who are the main interface with the customers. He said that the company needs to work on enhancing the dealer satisfaction and loyalty, by providing better support, incentives, and communication. He also said that the company needs to work on improving the customer satisfaction and retention, by offering better service, quality, and warranty.
A third area that Tavares wants to improve is the marketing strategy, which he said needs to be more efficient and effective. He said that the company needs to move money from low-return activities to high-return activities, such as digital marketing, social media, and events. He also said that the company needs to improve its brand image and awareness, by highlighting its strengths and values, such as innovation, diversity, and sustainability.
Launching New Products and Technologies
Tavares also announced that Stellantis plans to launch several new products and technologies in 2024, to meet the changing customer needs and preferences, and to compete with the rivals. One of the main focuses of the company is to launch new electric vehicles, which are expected to grow in demand and popularity, especially in the U.S., where the government is promoting and supporting the adoption of clean and green mobility.
Tavares said that Stellantis plans to launch eight battery-electric vehicles in the U.S. market in 2024, across its different brands and segments. He said that the company has the technology and the resources to offer competitive and attractive electric vehicles, that can match or exceed the performance, range, and price of the conventional vehicles. He also said that the company is working on developing its own battery technology and production, to reduce its dependence on external suppliers and to lower its costs.
Another focus of the company is to launch new products in the emerging markets, such as China, India, and Africa, where the potential for growth and expansion is huge. Tavares said that Stellantis plans to introduce new models and brands in these markets, that are tailored to the local customer needs and preferences, and that can leverage the existing distribution and production networks of the company. He also said that the company plans to increase its market share and profitability in these markets, by offering more value-added services and solutions, such as financing, leasing, and mobility.
Enhancing the Competitiveness and Profitability
Tavares also shared his vision for the future of Stellantis, which is to become a more competitive and profitable company, that can create value for its stakeholders and society. He said that the company has a unique opportunity to benefit from the synergies and efficiencies that result from the merger of Fiat Chrysler Automobiles and PSA Group, which created Stellantis in January 2021. He said that the company expects to achieve annual cost savings of $6 billion by 2024, by optimizing its operations, processes, and resources.
Tavares also said that the company has a clear strategy to enhance its competitiveness and profitability, by focusing on four pillars: performance, efficiency, responsibility, and agility. He said that the company aims to improve its performance, by offering high-quality products and services, that meet or exceed the customer expectations and satisfaction. He said that the company aims to improve its efficiency, by reducing its costs and increasing its revenues, through innovation, digitalization, and optimization. He said that the company aims to improve its responsibility, by reducing its environmental and social impact, and by contributing to the common good. He said that the company aims to improve its agility, by being flexible and adaptable to the changing and challenging market conditions, and by seizing new opportunities and overcoming new threats.
