“In a difficult time, Stellantis is looking for a new star”

Lhe retirement time was approaching for the CEO of Stellantis, pushed towards the exit by age (66) and the fall in his results. But the pace is accelerating, as the automotive sector enters, according to Carlos Tavares, “in a Darwinian phase of its transformation”. It is now a given, the group announced on Friday October 11: at the helm of the manufacturer with fifteen brands (Peugeot, Citroën, Fiat, Chrysler, Jeep, Opel, etc.) since March 2014, the Portuguese leader will leave in January 2026.

His board of directors is already looking for a successor. It is up to him to ensure “tiling” for one year. He proceeded without delay to “targeted changes within the management team” in order to“improve the performance of your organization”. The finance department, and those of Europe and North America, two regions where Stellantis is struggling, are changing holders… in favor of three trusted men of Mr. Tavares. Industrial management recovers key supply chain activity “for greater commercial performance”. Thus the “board”, chaired by John Elkann, wants “tackle global challenges with determination”.

Margin drop

Did Mr. Tavares not do it? After years of success, its strategy of drastically lowering costs and selling more expensive cars ended up being shattered by market reality. Particularly across the Atlantic (– 18% of sales in the first half), where Stellantis made half of its profits, but where stocks are accumulating. The “boss” is attacked from all sides, from the United Auto Workers union to dealers in the United States, including the president of the Italian council, Giorgia Meloni, who denounces the drop in production in the Peninsula for the benefit of Poland and Serbia.

At the end of September, Mr. Tavares had to announce a drop in his margin, between 5.5% and 7% in 2024 compared to 14.4% in 2023. This is no consolation, but Volkswagen, BMW and Mercedes are also going through a difficult pass. “And it’s probably not over”he warned. The gap is widening with China. Dominant in batteries and software, it is moving at high speed to electric vehicles and is doing everything to gain market share with “locomotives” like BYD or MG. In Europe, the thermal engine is resisting and sales of electric vehicles have plunged in recent months in large countries such as Germany, France and Italy. By what miracle – or what genius – will the successor of Carlos Tavares find the lucky star of Stellantis?