- Carlos Tavares, who led Stellantis since its formation in 2021, quit the corporate this week
- In keeping with sources, Tavares was too heavily focused on cost-cutting and making the corporate green
- This focus reportedly led to the Hemi V-8s and popular models being dropped without their replacements being ready
With Stellantis’ global sales down 17% in the primary nine months of the 12 months, its share price dropping greater than double that figure over the identical period, and no quick turnaround in sight, it wasn’t an enormous surprise when the corporate’s CEO, Carlos Tavares, quit earlier this month.
Stellantis announced on Dec. 1 that Tavares had resigned resulting from “different views” with the board. This statement got here just two months after Stellantis indicated that Tavares would remain CEO until 2026, when his current contract was set to run out.
Citing various anonymous sources, CNBC detailed a number of the tensions at Stellantis that led to Tavares’ departure.
In keeping with the sources, Tavares did not heed feedback from U.S. managers—representing Stellantis’ most profitable market and the one most affected by declining sales. As an alternative, he reportedly prioritized cost-cutting while pushing to extend margins, which alienated suppliers, factory staff, and dealers, and ultimately turned customers away.
Stellantis brands
The sources also claimed that Tavares’ concentrate on electric vehicles got here on the expense of more cost-effective, lower-margin gas-powered models and the beloved Hemi line of V-8 engines. This led to the discontinuation of popular models just like the Jeep Cherokee and Dodge Challenger and Charger without ready replacements, in addition to the phase-out of Hemi engines from most product lines.
“Everybody desired to keep [the Hemi],” one source said, adding that Tavares remained adamant about phasing the engines out. Currently, Stellantis’ only light vehicles offering a V-8 are the Dodge Durango and Jeep Wrangler.
With Tavares out, Stellantis is working to regular its operations. The corporate this week announced the rehiring of Tim Kuniskis, who retired in May. Kuniskis, known for spearheading the Hellcat line of performance V-8s, previously led Dodge and Ram and has been brought back to steer Ram.
Stellantis can also be trying to find a everlasting successor for Tavares, a process the corporate expects to conclude by the primary half of 2025. Within the meantime, Stellantis might be managed by an interim executive team led by Chairman John Elkann, a member of the Agnelli family, whose Exor holding company owns roughly 14.4% of Stellantis.
This Article First Appeared At www.motorauthority.com
