Stellantis, privatization of Air Portugal… Carlos Tavares speaks for the first time since his departure

The former CEO of Stellantis returns to the Portuguese press on his “amicable” departure from the automobile group and the role he could play in the privatization of TAP Air Portugal.

A long silence. Since his resignation “with immediate effect” from Stellantis announced on December 1, Carlos Tavares has not yet spoken publicly.

The former general manager of the automobile giant returned to this hasty departure in an interview with the Portuguese weekly Expresso.

“Amicable” departure

Carlos Tavares notably declared that his “amicable” departure was motivated by disagreements with the board of directors on the strategy to be implemented.

The manager, who arrived at the head of PSA in 2014 before the birth of Stellantis in early 2021, did not go into detail about his differences with the board of directors of the Franco-Italian car manufacturer. He simply explains that the decision to leave was taken jointly by him and President John Elkann.

Sources familiar with the matter told Reuters his sudden ouster was triggered by goals set by Carlos Tavares. Objectives considered unrealistic or destructive by certain members of the board of directors.

“Protect the business”

In the interview with Expresso, Carlos Tavares emphasizes that the main concern was to “protect the company so that a difference in points of view does not create the risk of misalignment of the company.”

“A company that employs 250,000 people, has a turnover of 190 billion euros and sells 15 brands worldwide cannot be managed with a lack of alignment, which has an immediate impact on strategic management “, he added.

Asked if he felt hurt by the outcome, he replied: “No, not at all.” He added that he would do the same if he could return in due time.

Previously considered one of the auto industry's most respected executives, Carlos Tavares' strategy has come under scrutiny after falling sales in North America drove the automaker , in September, to issue a warning on its results for 2024.

Dealers, industry experts and customers say Stellantis has priced itself out of the market in the United States and Europe under the leadership of Carlos Tavares, the Reuters report notes.

“When you face a storm, you have to steer the boat according to the waves. You cannot discuss the best way to face them,” Carlos Tavares said in this interview, recalling that the automobile industry was currently going through a “Darwinian” period, an expression he had used many times when he led Stellantis.

A role to play in the privatization of Air Portugal?

Carlos Tavares also looked back on his future. He plans to play a role in the privatization of the airline TAP Air Portugal, as an investor or non-executive director, summarizes AFP.

He claimed to have been approached by “a very large number of friends”: they “came to me to ask me if I wanted to participate in this project” of privatization.

Although he specifies that “no decision has been taken”, Carlos Tavares argues that the Portuguese State could sell part of the capital of TAP to one of its European competitors while protecting the economic interests of the country, very dependent on tourism.

“There may be synergies, but control of the company would remain in Portugal” by adding “the Portuguese State, Portuguese managers and Portuguese investors,” he said.

The former CEO of Stellantis remained vague on his possible role: “it could be at board level, it could be at investor level, but probably non-executive”.

Urgently renationalized to benefit from an injection of 3.2 billion euros of public funds, TAP Air Portugal must be privatized again to the tune of at least 51% of its capital.

This sale, which must be concluded in 2025, is attracting the interest of European companies Air France-KLM, Lufthansa and the IAG group (British Airways and Iberia).

The Portuguese government, with which Carlos Tavares claims not to have contacted, had recently expressed interest from a total of a dozen entities, including non-European companies and investment funds.