American Brands wants to fire Carlos Tavares from Stellantis – Observador

Carlos Tavares (very successfully) led PSA, before being entrusted with the difficult task of managing Stellantis in 2021. In these new roles, like a tightrope walker, It is up to you to deliver results and reconcile the interests of different parties. On the one hand, these Frenchmen from the former PSA (Peugeot, Citroen, DS and Opel), with the Peugeot family at their head, and on the other hand, these Italians and Americans from the former Fiat Chrysler Automobiles (FCA), with the latter essentially entrenched in the power of the Agnelli family ( Fiat owners) and in repair funds for the former Chrysler Group. It turns out that the North American “faction” of Stellantis, the world's fourth-largest car group, is demanding the Portuguese director's resignation.

Shareholders are suing Carlos Tavares and Stellantis over lower profits

After several semesters of positive progress, Stellantis' results worsened by 48% in the first six months of 2024This prompted Carlos Tavares to point the finger at North American brands, accusing them of being part of the problem. At the same time, the Stellantis strongman admitted that he intends to close (or sell) manufacturers that, in the world of the 14 brands that make up the group, did not achieve the expected profits or profitability. Now it seems that neither the accusation nor the solution offered to stop the bad results will please Stellantis' North American shareholders who, together with local traders, accuse the group's management of mismanagement and are demanding the Portuguese CEO.

After all, Stellantis is not selling (or closing) any of the 14 brands

the president John Elkann, of Stellantis, confirmed to Bloomberg that Tavares' position within the group Not under imminent threat He also said that his decisions did not upset shareholders in any way. However, the US dealer network accuses Tavares of causing the rapid decline of brands in North America and not taking specific measures to reduce inventory. In addition, they criticize the CEO for making numerous layoffs and blame him for cutting production at North American plants, an action that has targeted Chrysler and Dodge.

For its part, Stellantis Maintains defense of implemented strategyStressing that “reviewing goals in such turbulent periods is imperative in the automotive sector.” According to the group, “the important thing is to improve the customer satisfaction index and company performance, without compromising compliance with the rules imposed by the regulator, especially those related to carbon dioxide.”₂“.