Stellantis is struggling to get rid of overcapacity and bloated inventory in its key North American market, at a time when global demand remains sluggish.
Shares in the Jeep, Fiat and Peugeot manufacturer slumped as much as 10%, hitting their lowest since July 2022, as investors worried about the vacuum left at the top of the world’s No. 4 carmaker following Tavares’ resignation on Sunday. The stock closed down 6.3% in Milan trading.
Subway has ignored 'screams for help' from shop owners — and risks being 'gobbled up' by this fast-growing rivalWall Street veteran for over 60 years dead at 83: 'True giant in our industry' In recent months, and with just over a year left of his contract, the CEO had focused mainly on cutting costs, the banker said. The board worried that was leading to quality issues but also cramping the company’s ability to develop and design new models.Launches of some key models, like the new version of the popular Peugeot 3008 mid-sized SUV and the budget Citroen C3 city car, with its electric version e-C3, have faced delays.
The UAW has threatened to strike against the automaker over delayed investments, prompting lawsuits from Stellantis accusing the union of breach of contract.Tavares’ cost-cutting had hurt in particular his relationship with US dealers and the United Auto Workers union, analysts said.
Tavares’ early exit despite his determination to turn things around before 2026 shows how serious the problems at the group are, Bernstein analyst Stephen Reitman said.
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