Stellantis' Tavares to highlight how company will compete in 'challenging market'

Six years ago this month, the CEO of what was then Fiat Chrysler Automobiles spoke to an audience of analysts, journalists and investors at the company’s historic Balocco Proving Grounds in Italy.

It was one of Sergio Marchionne’s last major public appearances before his death that summer.

Marchionne, a legendary figure in the automotive world, had spoken of dark days and resilience for both Fiat and Chrysler and the people who worked to save them as he set an ambitious course for the coming years. The presentations and discussions for FCA's Capital Markets Day offered a forward-looking vision for growing sales and margins, bolstering electrification and designating Jeep, Ram, Alfa Romeo and Maserati as so-called global brands.

On Thursday, the future will once again be a key focus for what is now the successor to FCA, Stellantis, the company formed less than three years after that day at Balocco from the merger with Peugeot maker PSA Group.

Stellantis will host its Investor Day on Thursday in Auburn Hills.
Stellantis will host its Investor Day on Thursday in Auburn Hills.

Stellantis CEO Carlos Tavares and Chief Financial Officer Natalie Knight, who are scheduled to lead the company’s Investor Day presentation in Auburn Hills, will “share Stellantis’ view on the dynamic, challenging market and how the company is well-positioned to compete for industry leadership,” according to the company. The presentation is slated to be livestreamed, beginning at 8 a.m., on the company's website.

The message on Thursday is likely to be fairly positive.

Stellantis CEO Carlos Tavares, pictured in a December file photo.
Stellantis CEO Carlos Tavares, pictured in a December file photo.

Knight, the CFO, said in April that the company is in a “transition period where we are getting ready to show you the true color of Stellantis.” At that time, the company also confirmed its financial guidance of a double-digit adjusted operating income margin for the full year, a sign of confidence from an automaker that has reported extremely healthy profits in recent periods.

It’s an interesting time for the automaker that counts 14 brands in its stable, and, as of last year, almost 251,000 employees worldwide.

All isn't rosy, however.

Several personnel changes

The company’s sales and market share in the United States, for example, have been down in recent reporting periods, and it will bear watching what happens when second-quarter sales results are released next month.

The company also has made a slew of executive changes, including new leadership in the key North American region, with Carlos Zarlenga replacing Mark Stewart, who left to lead Goodyear earlier this year, and at the Dodge, Ram and Jeep brands.

The sales leadership side has seen significant shuffling, too, with Matt Thompson replacing Jason Stoicevich as senior vice president of U.S. retail sales less than three months after Stoicevich, who has left the company, took over the position in a reorganization.

Sam Fiorani, vice president of global vehicle forecasting for AutoForecast Solutions, said some of the people who have left recently seem to have “bumped up against the ceiling,” and he noted that Tavares isn’t going anywhere. Plus, auto executives have opportunities for senior positions elsewhere, he said.

Changes don’t stop with the executive class, however. Cuts to temporary worker ranks and other workers in the months following the ratification late last year of the current UAW contract have also prompted criticism, particularly from the union.

Part of the transition that Knight referenced involves the company’s plans to roll out 25 new models globally this year, including 18 battery electric vehicles (eight in the United States). A more complicated EV market with some automakers readjusting their plans could play to some of Stellantis’ strengths. The company is partnering with Leapmotor to sell Chinese-made EVs in Europe and other parts of the globe, and the automaker is in the midst of launching its STLA vehicle platforms, which might be tailor-made for this moment.

Natalie Knight is chief financial officer for Stellantis.
Natalie Knight is chief financial officer for Stellantis.

The platforms are dynamic enough, Fiorani said, that it looks like the company is ahead of the curve because they can accommodate different powertrains, providing Stellantis the continuing ability to offer gas-powered, electric or hybrid models.

The company, he said, has lots of changes to make in the coming years, with excess capacity at plants around the world and managing its many brands, but with the products and personnel in place, it’s primed for the future.

Contact Eric D. Lawrence: elawrence@freepress.com. Become a subscriber. Submit a letter to the editor at freep.com/letters.

This article originally appeared on Detroit Free Press: Stellantis Investor Day gives Tavares chance to lay out company plans

Advertisement