The ax fell on Sunday, December 1 at 8:40 p.m. In a press release that is not embarrassed by feelings, Stellantis announces the immediate departure of Carlos Tavares. A smooth eviction transformed into a dramatic turn of events. The board of directors, meeting urgently in Amsterdam, recorded the end of the reign of the CEO.
The brutal end of a story that seemed well rehearsed
However, the story started well. In 2021, Carlos Tavares achieved the unthinkable: merging PSA and Fiat-Chrysler to create Stellantis, a behemoth with 14 brands. Under his leadership, profit records kept coming. The Portuguese boss imposes his method: drastic reduction in costs, pressure on suppliers, and relocation to cheaper countries. A strategy that pays off, but makes people cringe.
Generosity towards shareholders is not lacking. In 2023, 4 billion euros will be paid to them, while employees receive 2 billion in bonuses. But behind these staggering figures, clouds are accumulating. Sales plummeted by 27% in the third quarter of 2024, particularly in North America where the quality of vehicles is criticized.
Strategic disagreements and thwarted ambitions
The reasons for this brutal divorce? Of the “different points of view” according to Henri de Castries, administrator of the group. Behind the scenes, tension rises between Carlos Tavares and John Elkann, heir to the Agnelli family. The first dreams of a new merger with another manufacturer, the second is firmly opposed to it.
The transition to electricity also crystallizes tensions. After having long criticized electrification “ dogmatic », Tavares changes his tune in September 2024. Too late perhaps to convince a board of directors which is seeking to redefine its strategy in the face of aggressive Chinese competition.
A contrasting heritage and an uncertain future
Carlos Tavares leaves behind a powerful, but weakened, group. The announced closure of the Vauxhall factory in Luton in the United Kingdom and the concerns of Italian employees demonstrate the challenges to come. John Elkann temporarily takes control, while waiting for a new pilot.
Two internal candidates stand out: Maxime Picat, the current purchasing director, and Antonio Filosa, the boss of Jeep newly appointed head of North American activities. The choice of successor, scheduled for the first half of 2025, will be crucial for the future of the group.
- Carlos Tavares leaves Stellantis with immediate effect after major strategic disagreements
- John Elkann is acting in the interim until the appointment of a new CEO planned for the first half of 2025
- The group confirms its financial objectives despite falling sales and major challenges to overcome
