By Nora Eckert and Giulio Piovaccari

DETROIT/MILAN (Reuters) – Chrysler-parent Stellantis (NYSE:) is searching for to strengthen its positioning in North America by slashing its bloated inventories and reducing automobile costs, the group’s finance chief stated on Monday.

The automaker is aiming to chop 100,000 autos from its U.S. inventories by the beginning of subsequent 12 months, and has already lowered about 40,000 models in July and August, Chief Monetary Officer Natalie Knight stated at a BofA Securities digital convention.

“We live in very troublesome occasions the place there are going to be winners and losers, and loads about being the winner is being the final man standing,” Knight stated, including that self-discipline on pricing and stock could be a core a part of the automaker’s technique to climate the bumpy transition to electrical autos.

The Jeep producer is below stress from shareholders, sellers and its unionized workforce to show round falling gross sales, income and a slumping share worth.

It’s dealing with a possible strike from the United Auto Employees union within the U.S., the place native Stellantis chapters have began laying the groundwork for a nationwide walkout.

“When occasions are robust, you get friction in all places,” Knight stated, including that she wished traders to see 2024 as a transitional 12 months, not the brand new regular for the Franco-Italian group.

Stellantis earlier this 12 months stated the group’s complete inventories amounted to round 1.4 million autos on the finish of the primary half of this 12 months, when its adjusted working revenue fell 40% attributable to a tender enterprise efficiency in North America, its revenue powerhouse.

Stellantis CEO Carlos Tavares visited the U.S. final month with a mission to create a plan to reverse its lagging operations there.

Tavares has led an aggressive cost-cutting technique, leading to reductions of salaried and manufacturing facility staff. Knight stated executives will proceed to restructure the group’s enterprise over the approaching years.

The automaker will attempt to supply 80% of its provide from low-cost nations by 2028, Knight stated, an effort that she stated would considerably scale back its total bills.

It has additionally slashed costs on a few of its autos, together with on the Jeep Grand Cherokee and Jeep Compass, Knight stated.

Whereas Knight acknowledged the primary half of the 12 months has been troublesome for the carmaker, she stated situations have been anticipated to enhance by means of the top of 2024. The automaker remains to be anticipating gross sales of latest fashions to contribute 15-20% of revenues within the second half of this 12 months, Knight stated.