Stellantis: Carlos Tavares, general director of the group, forced to resign

by time news

In the ⁢end the ax fell sooner than expected. But could it be otherwise? ​The CEO of Stellantis (Fiat, Jeep, Chrysler, Peugeot, Opel), the Portuguese Carlos ⁢Tavares, who has been sitting‍ in an ejection seat for several ‍months, ⁢was forced to ‌resign ⁤this⁢ Sunday from the board of directors with “immediate effect”. And the group’s first shareholder, John ⁣Elkann, a member of the powerful Agnelli family who founded Fiat, seems to have activated the button ⁢given⁣ that the⁣ manager was ‍fired “due to a difference of opinion” according to‍ Henri de Castries, administrator of Stellantis. In ⁢a laconic press release the group announced that it had “accepted the resignation of Carlos‍ Tavares”.

A year before the official end of his​ term, the emblematic⁣ leader, who has long enjoyed enormous popularity and spends his⁤ time traveling to‍ diffrent⁢ factories around the world, must ⁤leave his post.⁣ But we knew his⁣ days were numbered at the helm‌ of the Franco-Italian-American group since the‌ board of directors officially began ​looking ⁤for his successor⁣ in October through “an identification process” led ⁤by⁢ Elkann himself.

The auto sector in the midst of the crisis

Carlos Tavares, ‌a performance-obsessed central engineer, pays ⁢for the poor results of a sprawling group ‌that includes no fewer ​than fifteen ⁤brands. Last July,‌ the published data and in particular an 18% drop in sales in North America, until then the most profitable market, sounded‍ ominous.

Tavares still⁤ thought ‍he⁣ was the master of ⁢watches when he acknowledged in ‍july that ‍Stellantis ⁣was going ‌through a “very turbulent transition period” and ‌that he expected ⁤to recover in the second half. But the third‍ quarter results​ did not encourage optimism among shareholders, with a 20% decline.

But⁣ the resignation​ of⁢ this leader, until then untouchable, comes at ⁣a time when the automotive sector has⁣ fallen into “full Darwinian⁢ crisis”, in the words of Tavares himself. The⁣ competition from electric cars is shaking ⁣up a sector where​ European and above ‌all German‌ excellence (Volkswagen⁢ and BMW) reigned supreme. Tesla in the US and a host of Chinese manufacturers have reshuffled the⁢ cards. ⁢Historic ‍manufacturers approached the transition to electric very late and are ‍struggling to⁣ make up for⁤ it.

The controversy over his ⁤salary

For Tavares, even‌ before the recent industrial difficulties, the situation had begun to change last⁤ April.His⁣ astronomical salary ⁢of 36.5 million euros for the year 2023 ⁣had sparked heated controversy and the ire of internal unions. It represented 518⁣ times the ‌group’s⁢ average salary.

Two⁤ years earlier the big boss, often described as ‌the “soldier monk” of the automotive industry, had grossed 19 ​million euros. Salary that the President of the Republic himself, Emmanuel‍ Macron, had defined as “shocking”. Last spring, the controversies did⁣ not prevent shareholders from validating 70% of his salary, largely ⁣linked to the objectives​ achieved.

In the face ⁣of public outrage, Carlos Tavares ⁤stood his ground. ‌«90% of‌ my salary comes from the company’s results, so this shows that ⁣the company’s results are apparently not that⁣ bad», he​ justified, underlining the «contractual dimension» of his⁤ compensation,‌ as for «a footballer or⁢ a Formula‌ 1 player driver”. Before launching: “if you think this is not acceptable, make⁣ a law and⁢ change the law and I will​ respect it”.

When questioned in October about the reshuffles‌ within the ⁣Stellantis board that had reduced his ⁤prerogatives, Tavares took these major maneuvers with a distance. “In 2026, the person who answers you will⁢ be 68, ‍a reasonable age to⁢ retire. It‍ is not true? “. And‍ he added: “If⁤ you ask my ​wife, it is indeed a requirement on her part. I‍ am a good husband! » The latter⁣ will therefore see ⁤her husband‌ return to his home a little earlier than ‍expected.

How ⁤will the leadership transition at Stellantis impact its electric vehicle strategy?

Interview: The Future of Stellantis⁣ – Insights from Automotive Expert ‍Dr. Maria Santos

Time.news Editor: Welcome,Dr. Santos. Thank you for joining us today. the recent resignation of carlos Tavares from Stellantis has sent shockwaves through the automotive ‍industry. What are your initial​ thoughts on this unexpected turn of⁢ events?

Dr. Maria Santos: Thank you for having me. It is indeed indeed a significant shock, ​especially considering Tavares’ tenure ​as CEO. His resignation signals a‌ pivotal moment for Stellantis at a time when the automotive sector is undergoing massive transformation.​ It raises questions about the company’s strategic direction,⁣ especially as they navigate ‌electric vehicle⁣ growth and changing​ market dynamics.

Time.news Editor: Tavares was quite popular and seemed too be a driving force behind Stellantis.Why ⁤do you think his departure was ⁢necessary according to the board, particularly with the mention of “difference of opinion”?

Dr. Maria Santos: Tavares had a distinct vision for Stellantis, which‌ may have been at odds with the Agnelli family’s long-term ⁣strategies ⁢for​ the company.The automotive industry is facing numerous challenges, from regulatory changes to supply chain ‍issues. if the board felt⁣ that ⁢Tavares’ vision could hinder the company’s adaptability to these challenges, it ‍could have led to the‍ decision for his resignation. Divergence in strategic⁢ priorities is frequently enough a catalyst for such significant leadership changes.

Time.news Editor: The agnelli family and John Elkann have considerable influence over Stellantis’ direction. ⁢What do you foresee as the immediate next steps for the company​ under new leadership, particularly during this⁤ transition‍ period?

Dr. Maria Santos: The⁤ board’s swift initiation of a search for ​a successor suggests they ​are keen on ‌a ⁣seamless transition. I expect Stellantis will prioritize stability while also seeking an innovative ‍leader⁣ who can enhance‌ their competitive edge. The new CEO will likely need to focus on⁢ integrating ⁣their diverse brands, ramping up EV production, ​and addressing market ⁣shifts with‍ agility. It’s also a time to reassess partnerships ​and explore new technological‍ collaborations.

Time.news editor: How do you⁤ think ‌this leadership change ⁤will impact Stellantis’​ operations globally, especially with‍ Tavares’ ​hands-on approach to visiting factories?

Dr. Maria Santos: Tavares was ⁤known for his active engagement with⁢ the workforce, which fostered a⁤ strong company culture. The new ⁢leader will ​need to strike‍ a balance between ​maintaining that connection and implementing any new strategies. Global operations may ​see shifts in focus as the next CEO might prioritize ‌certain markets or brands based on ‌evolving consumer demands. ​A clear dialog strategy will be crucial during this transition to ‍maintain employee morale and productivity.

Time.news Editor:​ Given the growing focus on sustainability and the electric vehicle market,‌ how critical is ⁢it for Stellantis’ new CEO ⁤to emphasize these areas?

Dr. Maria Santos: Absolutely critical. The automotive landscape is changing rapidly with consumer preferences pivoting towards sustainability. The new CEO must not only focus‌ on ramping up⁢ EV production but also on the broader aspects of​ sustainability,such as sourcing materials responsibly and reducing the‌ carbon footprint of manufacturing processes.This approach will be essential for Stellantis to maintain a competitive edge and meet regulatory requirements.

Time.news Editor: what’s your ⁣outlook for Stellantis in ⁢the next ​year? Do you think they can emerge stronger ‍from⁣ this leadership ⁣change?

Dr. Maria santos: While uncertainty always accompanies leadership transitions, stellantis has a solid brand⁢ portfolio⁢ and a talented workforce. If ‍they select the‍ right‍ leader who can‌ articulate a clear vision and⁣ rally⁤ the ⁣team around sustainability and innovation, I believe they can not only stabilize but also⁣ position themselves strongly in the‌ evolving ‍automotive market. This is a pivotal moment, and I’m optimistic about their potential for growth and transformation.

Time.news Editor:‍ Thank you,⁢ Dr. Santos, for sharing your insights. It will be engaging to see how Stellantis navigates this significant change in leadership.

Dr.‌ Maria Santos:⁣ Thank you for having me. It was​ a pleasure discussing this vital topic with you!

You may also like

Leave a Comment