Seeking higher margins, Stellantis CEO Tavares lost some core customers

Automotive and TransportationAutomotive and Transportation

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Seeking higher margins, Stellantis CEO Tavares lost some core customers

^{Published on 2024-12-02 04:31:29 - Aaron Neefham, N@N}

When 24-year-old Elena Aragon set out to buy a new car, she reviewed a range of no-frills brands in her home town of Cadiz, Spain, including Stellantis' Fiat and Peugeot.

The article from Reuters discusses how Carlos Tavares, CEO of Stellantis, has acknowledged that the company's strategy to focus on higher-margin vehicles has led to the loss of some core customers. During a media roundtable in Auburn Hills, Michigan, Tavares admitted that while the shift towards more profitable models was necessary for financial health, it has resulted in a disconnect with customers who preferred the company's more affordable offerings. He emphasized the need to balance profitability with maintaining a broad customer base, especially in light of the competitive pressures in the automotive industry and the transition to electric vehicles. Tavares also highlighted the importance of not alienating loyal customers as the company navigates through these changes.

Read the Full Reuters Article at:
[ https://www.reuters.com/business/autos-transportation/seeking-higher-margins-stellantis-ceo-tavares-lost-some-core-customers-2024-12-02/ ]