Stellantis looks to improve on 2023 after weathering UAW strike

The UAW's six-week strike against the Detroit 3 last fall landed several blows on Stellantis, though CEO Carlos Tavares said the automaker made it through the turbulence largely unscathed.

The production cuts caused by the walkouts slowed Stellantis' second-half performance in North America, but Tavares on Thursday said the company managed to "protect" its adjusted operating income margin in the region. That margin fell to 15.4 percent from 16.4 percent in 2022, which Tavares said was still a "very robust result" given the circumstances.

Globally, the company's margin fell 4.5 percentage points in 2023 to 12.8 percent. It achieved record net revenue of $203.9 billion, a 6 percent increase year over year, and net profit rose 11 percent to $20 billion.

Tavares said 2023 was a "very agitated year" that proved Stellantis is a resilient company. Among the obstacles was the UAW strike's shutdown of Jeep Wrangler and Gladiator production in Ohio and 20 parts distribution centers for more than a month. Ram 1500 production also was halted shortly before the company came to terms with the union.

The automaker will need more of that resilience as it works to stem its North American market share losses. Stellantis said its share in the region dropped 1.3 percentage points last year to 9.4 percent, as gains in Mexico were offset by declines in the U.S. and Canada.

Stellantis' U.S. sales slipped 1.3 percent while the overall market rose 13 percent. Sales fell 6.1 percent for Jeep — the brand's fifth consecutive drop after nearly surpassing 1 million sales in 2018 — and 1 percent for Ram.

Stellantis entered 2024 having ended production for numerous aging gasoline-powered models. Its offensive in the coming years will feature a slate of new EVs, including eight for the North American market in 2024.

The Jeep Cherokee and Renegade are out, paving the way for the brand's move to more battery power with the Recon and Wagoneer S. The Chrysler 300, after a nearly two-decade run, came off the assembly line for the last time in December. Output of the current-generation Dodge Challenger and Charger also ended in December as Dodge gets ready to unleash the first electric Charger this year.

"I don't think that we were stellar in 2023 in our way we go to market, the way we manage the cash flow, the way we coordinated the different actions — manufacturing, marketing, distribution, marketing plans, coordination with the dealers," Tavares said during a media roundtable Thursday.

But Tavares said Stellantis can make immediate improvements in North America and believes it has the right products to do so. He cited the upcoming EVs and a 10 percent U.S. sales gain last year for the Jeep Grand Cherokee.

Tavares also pointed to the company's $53,300 average U.S. transaction price — the highest among nonluxury automakers, according to J.D. Power — as another encouraging sign.

"Fresh product means an opportunity to reset the clock in the transaction pricing so that you wipe out the erosion of your transaction price that obviously you have in the lifecycle of older products," Tavares said. "We are giving also our teams a little bit more breathing space in terms of communicating the emotions and the power of their brands so that we can stimulate the demand in a more efficient way."