DETROIT/MILAN, Sept 23 (Reuters) - Chrysler-parent

Stellantis ( STLA ) is seeking to strengthen its positioning

in North America by slashing its bloated inventories and cutting

vehicle prices, the group's finance chief said on Monday.

The automaker is aiming to cut 100,000 vehicles from its

U.S. inventories by the start of next year, and has already

reduced about 40,000 units in July and August, Chief Financial

Officer Natalie Knight said at a BofA Securities virtual

conference.

"We are living in very difficult times where there are going

to be winners and losers, and a lot about being the winner is

being the last man standing," Knight said, adding that

discipline on pricing and inventory would be a core part of the

automaker's strategy to weather the bumpy transition to electric

vehicles.

The Jeep manufacturer is under pressure from shareholders,

dealers and its unionized workforce to turn around falling

sales, profits and a slumping share price.

It is facing a potential strike from the United Auto Workers

union in the U.S., where local Stellantis ( STLA ) chapters have started

laying the groundwork for a nationwide walkout.

"When times are tough, you get friction everywhere," Knight

said, adding that she wanted investors to see 2024 as a

transitional year, not the new normal for the Franco-Italian

group.

Stellantis ( STLA ) earlier this year said the group's total

inventories amounted to around 1.4 million vehicles at the end

of the first half of this year, when its adjusted operating

profit fell 40% due to a soft business performance in North

America, its profit powerhouse.

Stellantis ( STLA ) CEO Carlos Tavares visited the U.S. last month

with a mission to create a plan to reverse its lagging

operations there.

Tavares has led an aggressive cost-cutting strategy,

resulting in reductions of salaried and factory workers. Knight

said executives will continue to restructure the group's

business over the coming years.

The automaker will strive to source 80% of its supply from

low-cost countries by 2028, Knight said, an effort that she said

would significantly reduce its overall expenses.

It has also slashed prices on some of its vehicles,

including on the Jeep Grand Cherokee and Jeep Compass, Knight

said.

While Knight acknowledged the first half of the year has

been difficult for the carmaker, she said conditions were

expected to improve through the end of 2024. The automaker is

still expecting sales of new models to contribute 15-20% of

revenues in the second half of this year, Knight said.