Can this European CEO revive the American maker of Jeeps and Rams?
Subscribe to enjoy similar stories. Carlos Tavares, head of Jeep and Chrysler’s parent company, has made a career of swooping in to save struggling European car brands. His latest project is to revive U.S.
sales at the company he created. Tavares orchestrated a $52 billion trans-Atlantic megadeal to form Stellantis nearly four years ago, bringing together staple European car brands such as Peugeot and Opel under the same company as popular American names such as Ram, Jeep and Dodge. Just nine months ago, strong North American profits were fueling results that delighted investors and blew away competitors.
Today, Tavares is under pressure from all sides: investors grappling with the declining share price; dealers fighting exasperation as cars pile up on lots; a union protesting a delayed plant reopening; and parts suppliers bristling at the company’s moves to cut expenses. Some U.S. dealers and recently departed Stellantis executives claim Tavares’s team failed to adjust as pandemic-era pricing muscle began to fade, leaving Jeeps and Rams priced too high relative to competitors.
Stellantis’s U.S. market share slid to 8.4% this year through August, from 9.6% last year and 11.6% in 2021, according to research firm Wards Intelligence. That marks a sharp drop in an industry where sales executives battle over fractions of a percentage point.
Tavares has urged caution on slashing prices and deepening discounts for vehicles, arguing the company must preserve the value of its brands. He has said the company aims to price models at the upper end of a given vehicle category, while adjusting relative to competitors. This summer, he acknowledged missteps in the U.S.
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