(Reuters) – Stellantis has set a target of reducing its North American inventory by 100,000 units by early 2025, the automaker’s chief financial officer Natalie Knight said at a digital conference hosted by Bofa Securities.

She added that these inventories, the swelling of which was one of the operational problems that tarnished the manufacturer’s results in the first half, had already been reduced by around 40,000 units in July and August, and that the movement had continued in September.

The group born from the merger between PSA and FCA intends to strengthen its position in North America also by adjusting its prices downwards, added Natalie Knight.

“These are challenging times, where there will be winners and losers, and being the winner largely means being the last one standing,” she continued, adding that discipline on pricing and inventory provides needed stability as the industry navigates a turbulent transition to electric vehicles.

Stellantis faces the risk of a strike in the United States by the United Auto Workers union. UAW President Shawn Fain has accused the company of failing to meet commitments it made last year on investments and products, a charge Stellantis denies.

“When times are tough, you have friction everywhere,” Knight said, adding that she wants investors to view 2024 as a transition year, not a new normal for Stellantis.

She also said management would continue to restructure its business in the coming years, targeting an 80% sourcing rate from low-cost countries by 2028, and that after a difficult first half, Stellantis’ situation should improve by the end of the year.

She also said the group would be open to acquisition opportunities if they arose, but that the priority at the moment was to improve the business in its current form.

(Report by Gilles Guillaume, with Norah Eckert in Detroit, Giulio Piovaccari in Milan and Nathan Gomes in Bangalore, edited by Blandine Hénault)

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