Published2. December 2024, 9:23 pm
CarStellantis: tavares stands after ten years of success
The “highest paid CAC 40” manager has just left the auto giant after years of success and the end of a more sensitive mandate in terms of figures.
The declining figures forced Carlos Tavares to retire.
AFP
In almost eleven years at the head of PSA then Stellantis, after the merger with fiat-Chrysler in January 2021, Carlos Tavares has recorded records, including a net profit of 18.6 billion euros (17 billion francs) in 2023.
as then, the group has largely stopped, losing market share in Europe and North america, due to prices that were too high in the face of hesitant consumers. Look back at the figures for the reasons for the fall of the iconic boss of the fifth largest car group in the world.
This is the largest operating margin ever recorded by the group with fourteen American, French, Italian and German brands in 2023, on par with premium car champion Mercedes-Benz. In the first half of 2024, it was still 10%, but at the beginning of October Stellantis revised its objectives, relying on a margin of between 5.5% and 7% for 2024, well below the double-digit objective set out on first.
Like the number of vehicles sold by the group in 2023, a financially successful year. More then two thirds – 4.5 million – were sold in Europe and North America. But since the beginning of the year, sales have fallen: -27% in the third quarter compared to last year worldwide and -20% in North America. Only the “third engine” – South America and the Middle East – continued to advance.
Stellantis market shares in Europe (including the United Kingdom) from the beginning of 2024. Although Volkswagen or Renault held theirs, the group has lost a lot of ground in one year, since it represented 17.1% of the market in 2023.Over the first nine months of the year, its sales fell by 7.1% on the old continent,affected by the decline of Fiat (-16.7%) and Opel-Vauxhall (-8.4%).
The Stellantis share has continuously lost value since reaching a peak of 27.19 euros (25 francs 28) in March 2024. After the announcements of falling results, it lost more than half of its value. On Monday, the day after the departure of the CEO was announced, it fell more 6.3% at 3 pm, to 11.73 euros (10 francs. 90).
The number of Stellantis employees worldwide in 2023, including more than 135,000 in Europe and 81,000 in North America. This is 23,000 less than in 2021. According to the management,the 8.1% reduction in workforce in two years is connected to “circumference effects” and not to the large cost reduction program implemented by Carlos Tavares.
In euros, the remuneration of carlos Tavares for the year 2023, of which 93% depended on the achievement of certain objectives, making him the best paid Boss in the CAC 40. His fixed remuneration was established at 2, 6 million euros (2.41 million francs).
(afp/rk)
How is the shift to electric vehicles impacting leadership decisions in the automotive industry?
Interview between Time.news Editor and Automotive Industry Expert
Editor: Good afternoon, and thank you for joining us today. With the recent departure of Carlos Tavares from Stellantis, the automotive industry is buzzing with reactions. To dive deeper into this topic, we have automotive industry expert Dr. Emily Carter. Welcome, Dr. Carter!
Dr. Carter: Thank you for having me! It’s a pleasure to be here.
Editor: Let’s start with the obvious—Carlos Tavares. After ten years at the helm of Stellantis and being recognized as the highest-paid manager in the CAC 40, what do you think characterized his leadership during this period?
Dr. Carter: Tavares’s tenure was marked by a keen focus on operational efficiency and strategic mergers, notably the PSA Group and Fiat Chrysler Automobiles. He had a remarkable ability to turn struggling brands around,and under his leadership,Stellantis thrived in a very competitive market. His success, however, has also highlighted the balancing act that comes with such leadership, especially in times of declining figures.
editor: That’s a great point. it’s reported that his departure comes after what many describe as a “sensitive mandate in terms of figures.” Can you shed light on what these declining figures may imply for the future of Stellantis?
Dr. Carter: Certainly. The automotive market is facing a seismic shift with the rise of electric vehicles and evolving consumer preferences. While Tavares was adept at navigating traditional automotive challenges, the significant investment and pivot required for electrification likely contributed to stress in thier financial performance. The decline in figures indicates a need for a renewed strategy and potentially a different leadership approach as Stellantis seeks to adapt to these changes.
Editor: It sounds like an exciting yet challenging time for Stellantis. What are the key areas you believe the new leadership shoudl focus on moving forward to ensure a seamless transition and successful future?
Dr. carter: The new leadership must prioritize innovation and sustainability. Investing in electric vehicle technology and enhancing the supply chain to accommodate new manufacturing processes are paramount. Additionally, focusing on digital transformation—leveraging data to understand consumer preferences and streamline operations—will be crucial. Lastly, rebuilding stakeholder confidence will be necessary, especially after a high-profile departure like Tavares’s.
Editor: Speaking of innovation, as we move towards a more electric future, how do you see stellantis positioning itself against its competitors?
Dr. Carter: Stellantis has a diverse portfolio and significant assets, but they need to act swiftly. To ensure competitiveness, they must fast-track development in electric and hybrid technologies while also investing in charging infrastructure and green initiatives. Collaborations with tech companies could also give them a competitive edge in software integration and automated driving systems, which are crucial for future mobility.
Editor: those are insightful recommendations, Dr. Carter. As we look ahead, how do you think Tavares’s legacy will impact Stellantis in the long term?
Dr. Carter: Tavares’s legacy will be a complex one. While he brought significant operational success and set a robust foundation, the challenges his departure represents will require a strong response from Stellantis’s new leadership. his focus on efficiency and profitability can serve as a guiding principle, but adapting to the changing landscape of the automotive industry is the real test. It will be captivating to see how they build upon his achievements and navigate these impending challenges.
Editor: Thank you, Dr. Carter. Yoru insights have illuminated the situation at Stellantis very well. As we watch this story unfold, it’s clear that the automotive world is in for some significant changes. We appreciate your time today.
Dr. Carter: thank you for having me! It’s been a pleasure discussing such an significant topic.
Editor: And thank you to our audience for tuning in to this discussion. Stay tuned for more updates on this evolving story and the future of the automotive industry.