An emblematic boss pushed towards the exit. Carlos Tavares, general director of the Stellantis automobile group, was forced to resign on Sunday 1is December, under pressure from the board of directors. The Franco-Italian-American group, which owns, among others, the Peugeot, Citroën, Fiat, Chrysler, Opel, Lancia and Jeep brands, is therefore parting ways with its intractable 66-year-old boss before his retirement, although announced at the beginning of October. A sudden departure due to “different points of view”according to a press release from the group, putting an end to more than ten years of a common history. Franceinfo returns to this story in five dates.
1 April 1, 2014: arrival at the head of Peugeot
The story does not begin with Stellantis but with Peugeot. After a resounding departure from Renault, where he spent thirty-two years, Carlos Tavares was announced at the end of 2013 by the competitor: the Peugeot family group. For several years, the lion brand has had poor results and found itself on the verge of bankruptcy. The State and the Chinese Dongfeng are called to the rescue. The Peugeot family is forced to lose control of its century-old empire.
Carlos Tavares officially took over operational management of the group's automotive branch at the beginning of April 2014 and presented his recovery plan which he called “back to the race”. The new boss likes to present himself as a “performance psychopath”recalls the newspaper Les Echosand will apply its methods: lower costs, reduction in the number of models, increase in margins, and also strong pressure on management.
The turnaround is spectacular and has become a textbook case. The group recovered from the first year and will then ride on the success of some of its models such as the SUV 3008. For some, Carlos Tavares also benefited from the measures put in place by his predecessor and in particular the reduction of costs such as those linked to the closure of the Peugeot factory in Aulnay-sous-Bois.
2 March 6, 2017: acquisition of Opel from General Motors
After regaining strength, the lion mark is hungry. The group, which became PSA in 2016, is accelerating and “devouring” Opel. The German brand has belonged to General Motors since 1929. The American group is selling the German manufacturer as well as the British brand Vauxhall for 1.3 billion euros.
The sequel is considered Carlos Tavares' most impressive success. In difficulty for many years, the German brand is recovering quickly. To return to profit, the Rüsselsheim firm notably had to reduce its workforce with 5,200 fewer people in Europe in 2018, including 3,700 across the Rhine.
3 October 30, 2019: merger with Fiat Chrysler
A historic milestone. At the end of October 2019, the PSA and Fiat Chrysler Automobile (FCA) groups officially announced their 50-50 merger to form the fourth global automobile group, behind Volkswagen, Toyota, and Renault-Nissan-Mitsubishi. The latter saw its merger project with FCA fail in June 2019.
Behind this $50 billion marriage, the Peugeot family group must accept that the group's largest shareholder becomes another family: the Agnellis. The founders of Fiat hold 14.5% while Peugeot, the French state and the Chinese manufacturer Dongfeng each have 6%.
The new head office is located in the Netherlands and Carlos Tavares takes the helm of the group which will subsequently become Stellantis. The group brings together under the same roof more than 250,000 employees and numerous brands such as Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, Fiat, Jeep, Lancia, Maserati, Peugeot, Opel, Vauxhall and Ram.
4 April 16, 2024: compensation of 36.5 million euros validated
One of the highest paid bosses of the CAC 40. If Carlos Tavares made the headlines, it is not only for his success but also for his remuneration considered “shocking” et “excessive” at the highest peak of the state. In mid-April, the shareholders of the Stellantis group validated, with more than 70% of the votes, remuneration of up to 36.5 million euros for the year 2023, an increase of 56% over one year. This remuneration mainly includes bonuses linked to the good results of the automobile group.
Since the end of the Covid pandemic, Stellantis has multiplied its successes while the automobile industry is in difficulty. The group will even reach a record net profit of 18.6 billion euros in 2023. Within Stellantis, Carlos Tavares applied the same recipe as at PSA with a hunt for costs in the factories leading to numerous job cuts and some closures, as well as tough negotiations on purchases from suppliers, and always high demands on its teams. Carlos Tavares was also happy to impose higher prices on the models, to put an end to the significant commercial discounts which were weighing on margins.
Faced with the controversy over his remuneration, the boss of Stellantis will remain unfazed. “If you think this is not acceptable, make a law, change the law and I will respect it”launched Carlos Tavares at the microphone of France Bleu Lorraine Nord.
5 December 1, 2024: announcement of resignation
At the end of 2024, Carlos Tavares' results no longer impress and his methods have left their mark. Two months ago, the Franco-Italian-American group noted a “deterioration” overall automotive market and particular difficulties in the American market. In Europe, Fiat, Citroën and Maserati suffer from the late arrival of new models, sometimes slowed down by electronic problems. Stellantis has therefore revised its objectives, counting on a margin between 5.5% and 7% for 2024, well below the two-digit objective initially set. Added to these poor results is the recall of thousands of vehicles due to defective airbags.
On Sunday, the Stellantis board of directors decided that the stars were no longer aligned, and unanimously accepted the “resignation” of Carlos Tavares, who was initially scheduled to retire at the beginning of 2026. In a press release, the group evokes a strategic disagreement, with “different points of view” between the board of directors and the manager. The day after this announcement, Stellantis shares plunged on the Paris Stock Exchange.
Several unions from Stellantis and the automobile industry welcomed the departure of Carlos Tavares on Monday. “No one will regret it among the workers of the Stellantis groupsaid Monday on franceinfo Jean-Pierre Mercier, SUD Stellantis delegate on the Poissy site (Yvelines). He was still responsible for several thousand job cuts around the world.” Job cuts which could continue, believes the trade unionist: “The head will change but the policy will remain exactly the same.”
