It is without a doubt one of the great news of the year. Stellantis, the fourth largest conglomerate in the automobile industry, is left without its CEO, Carlos Tavares. The Portuguese businessman presented his resignation letter yesterday, December 1 before the office of John Elkann. After accepting his resignation, Stellantis now enters a stage of change. Tavares was expected to retire at the end of next year, but his drastic decision has forced plans to replace him to be accelerated. It won’t be easy. The company is experiencing a great moment of instability with several of its parts putting pressure on it.
In 2021, the whole world celebrated the formation of the Stellantis Group. An agreement between the FCA and PSA groups resulted in the creation of one of the largest corporations in the motor world. With a total of 15 brands under its belt, including Citroën, Opel, FIAT, Peugeot, Dodge and RAM, among others.we must also add the newest and foreign incorporation; Leapmotor. At the beginning of the year, Tavares himself signed an agreement worth 1.5 billion euros to acquire the Chinese company’s sales rights in Europe, in addition to having access to its motor, platform and battery technology.
Company without direction: they will quickly look for a replacement
Over the years, Tavares has led Stellantis to success. Under a very strict command where savings have been rewarded above all else, the Portuguese’s adjustment policy has had a deep impact on its brands, perhaps too much. Many voices from different areas of the company have criticized the situation, especially from the United States.. The American division, with Jeep at the helm, has made its opposition to Tavares very clear. The company loses market share with an almost non-existent short and medium-term commercial agenda. American pressure has forced the situation.
Given the delicate general situation, with several marks on the wire, and with increasing pressure, a couple of months ago Tavares announced that at the end of next year, at the end of 2025, he would retire. Stellantis took 2025 as the year in which to look for and forge a new CEO capable of controlling the group’s 15 brands. However, once again taking everyone by surprise, Carlos Tavares has resigned from his position with immediate effect. John Elkann, the president and CEO of the Stellantis Group, has accepted the resignation. Elkann will take interim command of the company until a new chief operating officer is found. An internal struggle is expected.
Given the weakness of the American branch, companies such as Jeep, Dodge or RAM will try to put pressure on a US representative to reorient the situation. Stellantis has announced that a period of six months, the first half of 2025, is given to find a replacement for Tavares. The resignation of the Portuguese leaves important projects in the air around the world and in Spain. This same week, after meeting with the president Pedro Sanchezmany hoped that our country would receive the important order to manufacture a new family of electric cars based on the STLA Small platform. Stellantis has three factories in our country, Madrid, Vigo and Figueruelas.
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